KEY FACTS: PayPal has launched a crypto checkout tool enabling U.S. merchants (excluding New York) to accept payments in over 100 cryptocurrencies, including Bitcoin, Ethereum, and PayPal’s stablecoin, PYUSD, which has seen its market cap grow nearly 80% to $894 million in 2025. The tool, integrated with wallets like Coinbase and MetaMask, converts crypto payments to PYUSD or fiat to shield merchants from volatility, offering a promotional 0.99% transaction fee for the first year, about 90% lower than typical credit card fees. Aimed at simplifying cross-border transactions, this move leverages recent U.S. regulatory clarity, such as the GENIUS Act, and positions PayPal to compete with FinTech rivals like Stripe and Coinbase in the growing crypto payments space.
Source: Paypal
PayPal Unveils Crypto Checkout Tool for Merchants to Accept Over 100 Cryptocurrencies
PayPal Holdings Inc. announced on July 28, 2025, the launch of a new crypto checkout tool that allows U.S.-based merchants to accept payments in over 100 cryptocurrencies. This development marks a significant step in PayPal’s ongoing efforts to integrate blockchain technology into its global payment infrastructure, positioning the company as a key player in the growing adoption of cryptocurrencies for everyday commerce. The announcement, which aligns with recent regulatory clarity and increasing competition in the fintech space, underscores PayPal’s ambition to streamline cross-border transactions and enhance the utility of its proprietary stablecoin, PayPal USD (PYUSD).
The new “Pay with Crypto” tool enables U.S. merchants—excluding those in New York due to state-specific regulations—to accept a wide array of cryptocurrencies, including major assets like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Tether (USDT), USD Coin (USDC), and XRP, alongside more niche tokens such as TRUMP and Fartcoin. This expansive support for over 100 digital assets reflects PayPal’s commitment to offering flexibility to both merchants and customers, catering to a diverse range of crypto holders. The tool integrates seamlessly with popular cryptocurrency wallets, including Coinbase Wallet, MetaMask, OKX, Kraken, Binance, Phantom, and Exodus, allowing customers to pay directly from their existing wallets at checkout.
To mitigate the volatility often associated with cryptocurrencies, PayPal automatically converts crypto payments into either its stablecoin, PYUSD, or fiat currency at the point of sale. This ensures merchants receive predictable revenue without exposure to the price fluctuations that have historically deterred businesses from adopting crypto payments. PayPal’s strategic use of PYUSD, which is fully backed by U.S. dollar deposits, short-term Treasuries, and similar cash equivalents, shows its focus on stability and trust in digital transactions.
One of the standout features of PayPal’s crypto checkout tool is its cost-effectiveness. The company is offering a promotional transaction fee of just 0.99% for the first year, which it claims is approximately 90% lower than typical credit card processing costs. For context, Visa’s transaction fees start at 1.75%, and the average credit card fee in the U.S. in 2024 was reported at 1.57%. After the first year, PayPal’s fee will increase to 1.5%, remaining competitive compared to traditional payment methods. This pricing model is particularly appealing to small and medium-sized businesses (SMBs), which often face high costs and complexities in cross-border transactions.
PayPal has emphasized that the tool is designed to simplify international commerce, a sector where traditional payment systems can be slow, expensive, and cumbersome. The crypto checkout feature leverages blockchain technology to enable near-instant settlement and reduce the friction associated with global payments. This aligns with PayPal’s broader mission to make financial services more accessible and efficient for businesses of all sizes, particularly SMBs looking to tap into a global customer base.
The launch of the crypto checkout tool comes at a time when PayPal’s stablecoin, PYUSD, is experiencing significant growth. Since January 1, 2025, PYUSD’s market capitalization has surged by nearly 80%, rising from $497 million to $894 million, according to data from CoinGecko. Introduced in August 2023 as the first major U.S. fintech-backed stablecoin, PYUSD has steadily gained traction, bolstered by PayPal’s extensive user base of over 350 million active accounts and its established reputation in the payments industry. The stablecoin’s integration into the new checkout tool further solidifies its role as a cornerstone of PayPal’s crypto strategy.
The growth of PYUSD adds to the trend of increasing stablecoin adoption, with the global stablecoin market reaching a circulating supply of $230 billion. Unlike volatile cryptocurrencies like Bitcoin, stablecoins like PYUSD, USDT, and USDC offer price stability, making them ideal for payments and settlements. PayPal’s focus on PYUSD positions it to compete directly with other stablecoin giants like Tether and Circle, while also challenging traditional payment processors like Visa and Mastercard.
The timing of PayPal’s crypto checkout tool launch is no coincidence. The recent passage of the GENIUS Act in the United States has provided a regulated pathway for companies to integrate stablecoins into their payment infrastructure. This legislation has created a favorable environment for fintech firms like PayPal to expand their crypto offerings without the regulatory uncertainty that has previously hindered adoption. The Clarity for Payment Stablecoins Act, passed by the Financial House Committee in July 2023, further supports this trend by establishing clear guidelines for stablecoin issuers, with the Federal Reserve as the primary regulator.
PayPal’s move also comes amid intensifying competition in the crypto payments space. Fintech rival Stripe made headlines in October 2024 when it launched a stablecoin payment option for USDC, which saw adoption in 70 countries on its first day. Stripe’s partnership with Coinbase, which included integrating fiat-to-crypto services and support for Coinbase’s Base network, has further raised the stakes. Meanwhile, Coinbase itself has been a pioneer in crypto merchant tools, launching Coinbase Commerce in 2018 and introducing the x402 protocol in 2024, which enables automated stablecoin transactions over standard HTTP. PayPal’s latest offering positions it as a formidable competitor in this rapidly evolving landscape, leveraging its global reach and trusted brand to drive mainstream crypto adoption.
PayPal’s expansion into crypto payments is another feather added to the cap of businesses embracing digital assets for their speed, low costs, and borderless nature. Industries such as food and beverage, retail, travel, e-commerce, and even real estate have increasingly adopted crypto payments, recognizing their potential to streamline transactions and attract a tech-savvy customer base. PayPal’s tool, which requires no technical expertise from merchants, lowers the barrier to entry for businesses hesitant to navigate the complexities of blockchain technology.
PayPal supporting over 100 cryptocurrencies, integrating with major wallets, and leveraging the stability of PYUSD, rewrites its playbook to stay ahead in the competitive payments industry. The move not only enhances the utility of cryptocurrencies for everyday transactions but is a major shift toward mainstream acceptance of digital assets.
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