PayPal has announced a major expansion in its cryptocurrency payment services by allowing U.S. merchants to accept payments in over 100 different cryptocurrencies, including Bitcoin and Ethereum.
New 'Pay with Crypto' Service
The new feature, named 'Pay with Crypto', is set to launch in the coming weeks. It will allow merchants to receive payments in various digital currencies using wallets like Coinbase, MetaMask, and Binance. When paying in crypto, funds are automatically converted into U.S. dollars or PayPal’s own stablecoin, PYUSD.
Benefits for Merchants
Merchants will have instant access to funds and can avoid cryptocurrency price volatility by receiving a stable amount in their accounts. PayPal offers a promotional transaction fee rate of 0.99% until July 31, 2026, significantly lower than typical credit card fees, which range from 1.5% to 3.5%. Additionally, holders of PYUSD can earn about 4% annual rewards.
Impact on Cryptocurrency Market
This initiative highlights PayPal’s commitment to mainstreaming cryptocurrency use in commerce, particularly supporting small businesses. PayPal is also strengthening its investment in integrating blockchain and digital asset technology into its payment infrastructure.
The launch of 'Pay with Crypto' opens up a $3 trillion cryptocurrency market to merchants, offering convenience and reducing transaction costs.
