PayPal Crypto Payments: 100+ Tokens Now Accepted for Merchants (2025)
2025-07-29 08:59:14PayPal’s Crypto Revolution: How the Payments Giant Is Driving Mainstream Adoption
A Bold Move That Could Reshape Global Commerce
Imagine a merchant in Oklahoma City selling a handmade gift to a shopper in Guatemala—without exorbitant fees, currency conversion delays, or banking bottlenecks. This is the future PayPal is building with its latest crypto push. On July 28, 2025, the fintech giant unveiled Pay with Crypto, a feature enabling U.S. merchants to accept over 100 cryptocurrencies—from Bitcoin and Ethereum to memecoins like TRUMP and Fartcoin—while slashing transaction costs by up to 90%.
The move marks a pivotal moment in crypto’s journey toward mainstream commerce, leveraging PayPal’s 650 million users and $3 trillion crypto market reach. But what does this mean for businesses, regulators, and the broader financial ecosystem?
The Game-Changer: PayPal’s Pay with Crypto
How It Works
PayPal’s new feature allows merchants to accept crypto payments, which are instantly converted to fiat or the company’s stablecoin, PYUSD, eliminating volatility risks. Key aspects include:
Supported Assets: Over 100 cryptocurrencies, including BTC, ETH, USDT, XRP, and Solana, with wallet integrations from MetaMask, Coinbase, and Binance.
Fee Structure: A promotional 0.99% transaction fee (rising to 1.5% after one year), undercutting traditional credit card fees (1.75%-4%).
Global Reach: Targets cross-border transactions, where businesses lose billions annually to banking inefficiencies.
The PYUSD Factor
At the heart of this system is PYUSD, PayPal’s dollar-pegged stablecoin, which has surged 80% in market cap since January 2025 to $894 million. It acts as a bridge between volatile crypto assets and merchant payouts, with holders earning 4% rewards when stored in PayPal wallets.
However, regulatory hurdles remain. PYUSD lacks approval from the New York State Department of Financial Services (NYDFS), restricting access for New York-based users.
Why This Matters for the Crypto Market
Breaking Down Barriers for Small Businesses
Traditional cross-border payments are plagued by high fees and slow settlements. PayPal’s solution offers:
Near-instant settlements, bypassing banking delays.
Cost savings—up to 90% cheaper than international credit card processing.
Access to 650 million crypto users, a lucrative demographic for merchants.
Alex Chriss, PayPal’s CEO, emphasized: "These innovations don’t just simplify payments—they drive merchant growth, expand consumer choice, and reduce costs. This is the future of inclusive, borderless commerce."
Regulatory Tailwinds
The rollout aligns with the GENIUS Act, a U.S. regulatory framework encouraging stablecoin use for payments. By providing legal clarity, the act has spurred fintech firms like PayPal and Stripe to expand crypto services.
Market Impact and Expert Reactions
Competitive Landscape
PayPal joins Stripe and Coinbase in streamlining crypto payments. Notably:
Stripe introduced USDC payments in 70 countries in 2024.
Coinbase Commerce has facilitated crypto transactions since 2018.
However, PayPal’s vast merchant network gives it a unique edge. "This could be the tipping point for crypto in everyday commerce," said Jalpa Bhavsar, a crypto journalist.
Challenges Ahead
Despite the optimism, risks persist:
Regulatory uncertainty, particularly in New York.
Custody risks, as digital assets lack FDIC/SIPC protections.
Market volatility, though auto-conversion to PYUSD mitigates this for merchants.
What’s Next for Crypto Payments?
Short-Term Outlook
Expansion: PayPal plans to extend the feature to enterprise clients and global markets, though no timeline is confirmed.
Stablecoin growth: PYUSD’s adoption could accelerate if NYDFS approval is secured.
Long-Term Vision
If successful, PayPal’s model could pressure traditional financial institutions to adopt similar solutions, further legitimizing crypto in global trade. As Amy Kim, PayPal’s Head of Global Policy for Crypto, noted: "Digital currencies have the power to reshape the future of commerce."
Join the Conversation
Will PayPal’s Pay with Crypto finally bring digital currencies into mainstream retail? Share your thoughts on our X.
Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.
Sources:
PayPal Newsroom - PayPal Drives Crypto Payments into the Mainstream
CBS News - PayPal Cryptocurrency Crypto Payment Businesses Bitcoin Ethereum
CoinTelegraph - PayPal launches crypto checkout tool, adds support for 100 tokens
Bloomberg - PayPal to Roll Out ‘Pay With Crypto’ Feature for Merchants
The Block - The Daily: Bitcoin and Altcoin Treasuries Surge, PayPal Rolls Out Pay with Crypto