PayPal has officially taken a major step into the world of digital currency by launching a new payment solution designed to integrate cryptocurrencies into mainstream commerce. The newly introduced “Pay with Crypto” feature is aimed at helping small businesses accept payments in over 100 different cryptocurrencies. These digital payments are automatically converted into PYUSD, PayPal’s proprietary stablecoin, offering a seamless and cost-effective experience for both merchants and consumers.
The company highlighted that traditional cross-border payments come with significant complications and high fees, often costing global businesses billions each year. Through its new offering, PayPal aims to alleviate these burdens by merging digital wallets, a broad array of cryptocurrencies, and its vast global merchant network. The result is a comprehensive solution that reportedly reduces transaction fees by up to 90%, thereby optimizing the efficiency of cross-border trade.
With Pay with Crypto, PayPal enables merchants to tap into a growing crypto economy estimated to exceed $3 trillion in market capitalization. The service allows for instant conversion between cryptocurrency and either stablecoin or fiat currency. Furthermore, it supports transactions from wallets such as MetaMask and Coinbase, granting access to a user base of more than 650 million global crypto holders.
The company stated that the transaction fee for this new feature stands at 0.99%, a rate that is notably lower than what is typically charged for international credit card processing. This fee structure makes the offering particularly appealing for small and mid-sized enterprises looking to expand globally while keeping costs under control.
PayPal’s leadership explained that many businesses face significant challenges when scaling across international borders, especially with the cost and complexity of accepting foreign payments. The new crypto solution is designed to dismantle these barriers, offering a platform that helps merchants increase profit margins, gain near-instant access to payment proceeds, and earn yields of up to 4% on PYUSD held within PayPal.
Tired: Paying high transaction fees for international payments.
Wired: Reducing costs up to 90% by offering pay with crypto for payments.
✅ Reduce international transaction fees by up to 90%
✅ Offer 100+ cryptocurrencies and eligible wallets at checkout
✅ Get immediate… pic.twitter.com/3XgOXW2Smr— PayPal (@PayPal) July 28, 2025
The initiative reflects PayPal’s broader mission to unify the digital and fiat payments landscape, making commerce more inclusive and borderless. It provides consumers with a diverse array of payment options while enabling merchants to operate efficiently in a globalized economy. U.S.-based sellers are positioned to benefit immediately, with access to low-cost crypto payments, the ability to pay freelancers faster, and the potential to earn rewards by maintaining PYUSD balances.
In a bid to further promote the use of stablecoins globally, PayPal recently entered into an agreement with Fiserv. This move is expected to bolster business operations by increasing the utility and reach of PYUSD in commercial settings.
PayPal also launched a global initiative named “PayPal World,” which unites five of the world’s leading digital wallets under one platform. This effort, according to the company, aims to reimagine how money moves across borders and reinforces its commitment to reshaping global commerce through digital innovation.
The Pay with Crypto feature is set to roll out to merchants in the United States over the coming weeks. It will support over 100 cryptocurrencies including Bitcoin, Ethereum, USDT, XRP, Solana, and BNB. The solution is also compatible with leading digital wallets such as Binance, OKX, Kraken, Coinbase, Phantom, MetaMask, and Exodus, with additional integrations anticipated in the near future.
By eliminating price volatility risk through stablecoin conversion and enabling access to millions of crypto-savvy users, PayPal’s new service is positioned as a transformative tool for small businesses aiming to thrive in the digital age. The move underscores a broader industry trend toward on-chain payments and decentralized financial integration.
