PayPal has launched its highly anticipated “Pay with Crypto” feature on July 28, 2025, enabling U.S. merchants to accept over 100 cryptocurrencies, including major tokens like BTC, ETH, XRP, USDT, and niche coins such as TRUMP and FARTCOIN. Customers simply connect wallet apps like Coinbase, MetaMask, Binance, Phantom, or Exodus at checkout, and PayPal automatically converts the payment to its stablecoin PYUSD or fiat USD. This process reduces price volatility risk for merchants and enables instant, seamless settlement.
The promotional transaction fee is set at 0.99% through July 31, 2026, significantly lower than average credit card fees, which typically fall between 1.5% and 3.5%. Cross-border payment costs are reduced by up to 90%, offering substantial margin improvement for e-commerce and global sales. After the promotional period, fees revert to 1.5%, still highly competitive.
Merchants opting to hold PYUSD balances in their PayPal accounts can earn ~4% annual yield, deepening liquidity and customer retention. PayPal has also partnered with Fiserv to scale stablecoin-powered payments globally, particularly in regions with limited banking access.
With PayPal’s global user base of over 650 million crypto holders and a $3+ trillion total crypto market capitalization, this new feature marks a major leap toward mass crypto adoption in commerce. By bridging decentralized finance and traditional retail payments, PayPal is positioning itself as the leading onramp for businesses seeking fast, low-cost, borderless transactions.