Stablecoin

America

Young

PayPal USD

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 <h2 id="what-is-pay-with-crypto-by-paypal">What is “Pay with Crypto” by PayPal?</h2>
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 <p><em>Pay with Crypto is PayPal’s blockchain-based settlement feature for US merchants. It allows payments in over 100 cryptocurrencies, including Bitcoin (<a href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow">BTC</a>), Ether (<a href="https://cointelegraph.com/ethereum-price" rel="noopener noreferrer nofollow">ETH</a>), Solana (<a href="https://cointelegraph.com/solana-price-index" rel="noopener noreferrer nofollow">SOL</a>), USDC (<a href="https://cointelegraph.com/usdc-price-index" rel="noopener noreferrer nofollow">USDC</a>), Tether’s USDt (<a href="https://cointelegraph.com/tether-price-index" rel="noopener noreferrer nofollow">USDT</a>), XRP (<a href="https://cointelegraph.com/xrp-price-index" rel="noopener noreferrer nofollow">XRP</a>), BNB (<a href="https://cointelegraph.com/binance-coin-price-index" rel="noopener noreferrer nofollow">BNB</a>) and others.</em></p>
 <p>Consumers can pay in crypto, while merchants receive either US dollars or PayPal USD (<a href="https://cointelegraph.com/paypal-pyusd-price-index" rel="noopener noreferrer nofollow">PYUSD</a>), <a href="https://cointelegraph.com/news/paypal-pyusd-stablecoin-1-billion-market-cap" rel="noopener noreferrer nofollow">PayPal’s dollar-pegged stablecoin</a>. The automatic crypto-to-fiat conversion on PayPal ensures no <a href="https://cointelegraph.com/news/volatility-the-necessary-evil-of-cryptocurrency-and-how-to-handle-it" rel="noopener noreferrer nofollow">exposure to price volatility</a>, thereby offering a familiar settlement process akin to a traditional payout.</p>
 <p>This PayPal crypto settlement tool is also designed to be wallet-agnostic. Shoppers can use Coinbase Wallet, MetaMask, Binance, Kraken, Phantom, Exodus and others without requiring pre-transfer funds into PayPal.</p>
 <p>Overall, the process is streamlined: connect an external <a href="https://cointelegraph.com/explained/crypto-wallets-explained" rel="noopener noreferrer nofollow">wallet</a> at checkout and pay directly.</p>
 <p>The company has removed legacy barriers by embedding crypto payments directly into PayPal’s wallet. US merchants can now accept cross-border payments with instant settlement and stable-value payouts. This approach also helps expand PayPal’s global reach.</p>
 <p>Overall, it’s a major step in PayPal enabling crypto for merchants at scale.</p>
 <p><img alt="PayPal's 'Pay with Crypto' checkout option" src="https://s3.cointelegraph.com/storage/uploads/view/b5a3b9d75cead85258bb1c753bd6a88e.jpg" title="PayPal's 'Pay with Crypto' checkout option"></p>
 <p><em><strong>Did you know? </strong>PayPal’s inaugural corporate payment using PYUSD occurred on Sept. 23, 2024, to Ernst &amp; Young via SAP’s digital platform.</em></p>
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  <h2 id="over-650-million-crypto-users-to-pay-with-crypto-on-paypal">Over 650 million crypto users to pay with crypto on PayPal?</h2>
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  <p><em>PayPal crypto payments in 2025 are shaping up to be a powerful driver of mainstream crypto adoption.</em></p>
  <p>With the launch of Pay with Crypto, PayPal is unlocking access to a $3-trillion crypto economy and a <a href="https://cointelegraph.com/learn/articles/bitcoin-adoption-by-country" rel="noopener noreferrer nofollow">potential audience</a> of 650 million crypto users (a massive leap from its existing 426 million account holders).</p>
  <p>This way, PayPal is expanding its footprint from fiat-native users to crypto-native spenders by overlaying stablecoin-enabled transactions onto its existing infrastructure. This includes seamless support for PayPal stablecoin integration and deeper use of PayPal’s <a href="https://cointelegraph.com/learn/articles/how-does-blockchain-work-everything-there-is-to-know" rel="noopener noreferrer nofollow">blockchain infrastructure</a> to close the gap between digital assets and real-world commerce.</p>
  <p>In effect, PayPal becomes an inclusive digital commerce provider — one that serves both traditional consumers and the growing population of <a href="https://cointelegraph.com/learn/articles/what-is-web-3-0-a-beginners-guide-to-the-decentralized-internet-of-the-future" rel="noopener noreferrer nofollow">Web3</a> wallet holders.</p>
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  <h2 id="paypal-enables-crypto-for-merchants-and-why-it-matters">PayPal enables crypto for merchants (and why it matters)</h2>
  <p></p>
  <p><em>Merchants benefit from Pay with Crypto: They save on fees, enjoy near-instant settlement, earn stablecoin yield and access global markets.</em></p>
  <h3 id="lower-transaction-fees">Lower transaction fees</h3>
  <p>The current promotional rate of 0.99% for PayPal <a href="https://cointelegraph.com/news/how-and-where-to-view-crypto-transaction-histories" rel="noopener noreferrer nofollow">crypto transactions</a> (valid through mid-2026) is significantly lower than the typical 1.5%-3.5% card processing fees.</p>
  <p>Even with a later increase to around 1.5%, it remains competitive, especially for cross-border sellers using crypto with PayPal.</p>
  <h3 id="near-instant-settlement">Near-instant settlement&nbsp;</h3>
  <p>Funds are settled in fiat or PYUSD almost immediately — no need to wait one to three business days. This PayPal blockchain settlement feature removes volatility for sellers while improving cash flow.</p>
  <h3 id="stablecoin-rewards">Stablecoin rewards</h3>
  <p>Merchants who choose to hold proceeds in PYUSD stablecoin on PayPal can reportedly earn around 4% <a href="https://cointelegraph.com/explained/apr-vs-apy-whats-the-difference" rel="noopener noreferrer nofollow">APY</a>, turning balances into income-generating assets.</p>
  <h3 id="global-reach-for-smes">Global reach for SMEs</h3>
  <p>For small businesses, particularly those operating internationally, the combination of fast settlement and lower fees means easier access to global demand. PayPal’s crypto merchant tools are tailor-made for small and medium-sized enterprises (SMEs) priced out of traditional cross-border finance.</p>
  <p><em><strong>Did you know? </strong>As of mid-2025, PayPal supported over 15.4 million active business accounts globally, thus offering a broad opportunity for crypto acceptance via Pay with Crypto.</em></p>
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  <h2 id="cross-border-crypto-payments-from-paypal-consumer-implications">Cross-border crypto payments from PayPal; Consumer implications</h2>
  <p></p>
  <p><em>From a buyer’s perspective, paying with crypto on PayPal is now as easy as using a card.&nbsp;</em></p>
  <p>At checkout, users can select “Pay with Crypto” alongside their regular options. After connecting a wallet (MetaMask, Binance, Coinbase Wallet or Phantom), they can pay with <a href="https://cointelegraph.com/explained/differences-between-tokens-coins-and-virtual-currencies-explained" rel="noopener noreferrer nofollow">crypto coins</a> such as BTC, ETH or stablecoins.</p>
  <p>The crypto-to-fiat conversion on PayPal happens instantly. The merchant receives a stable payout, while the buyer enjoys a frictionless, crypto-native payment experience without having to manually swap assets or deal with volatility.</p>
  <p>This feature transforms digital assets into usable currency, enabling real-world utility beyond speculative trading. It’s especially impactful for users who prefer <a href="https://cointelegraph.com/learn/articles/self-custody-vs-centralized-crypto-cards" rel="noopener noreferrer nofollow">non-custodial wallets</a> and want to pay directly with crypto, without touching <a href="https://cointelegraph.com/explained/crypto-exchanges-explained" rel="noopener noreferrer nofollow">centralized exchanges</a>.</p>
  <h3 id="paypal-s-broader-vision-for-crypto-settlement">PayPal’s broader vision for crypto settlement</h3>
  <p>PayPal is laying the foundation for crypto-enabled infrastructure on a global scale.&nbsp;</p>
  <p>Its upcoming PayPal World digital wallet alliance, set to launch in fall 2025, will connect wallets across major payment ecosystems: UPI in India, Tenpay Global in China, Mercado Pago in Latin America and Venmo in the US. The goal is to roll out seamless cross-border crypto payments via PayPal for nearly 2 billion users.</p>
  <p>To support this, PayPal is expanding its partnership with Fiserv, working toward stablecoin interoperability through the integration of its PYUSD stablecoin and Fiserv’s FIUSD.&nbsp;</p>
  <p>The result is real-time, programmable payments across thousands of banks and millions of merchants with no added tech overhead. This PayPal-Fiserv stablecoin partnership could be central to making PayPal blockchain settlement features accessible to the mainstream.</p>
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  <h2 id="risks-of-paypal-s-stablecoin-integration">Risks of PayPal’s stablecoin integration</h2>
  <p></p>
  <p><em>While PayPal enables crypto for merchants, rollout isn’t yet universal.&nbsp;</em></p>
  <p>PYUSD is still pending approval from the New York State Department of Financial Services, meaning New York residents can’t yet use PayPal crypto payments <a href="https://cointelegraph.com/news/sec-drops-investigation-into-paypal-s-stablecoin" rel="noopener noreferrer nofollow">involving the stablecoin</a>.</p>
  <p>There are also user-side risks. Despite PayPal supporting 100 cryptocurrencies, neither PYUSD nor any crypto held in wallets is insured by the <a href="https://cointelegraph.com/news/crypto-adoption-how-fdic-insurance-could-bring-bitcoin-to-the-masses" rel="noopener noreferrer nofollow">Federal Deposit Insurance Corporation</a> or the Securities Investor Protection Corporation. That means users would be exposed to loss if wallets, custodians or blockchains fail — an important caveat for anyone exploring how to pay with crypto on PayPal.</p>
  <p>Additionally, while the current PayPal crypto transaction fees sit at an attractive 0.99%, this promotional rate will end in mid-2026. Once it rises to 1.5%, it will remain competitive, but the lack of long-term pricing certainty may deter some merchants from relying on PayPal crypto settlement as their default.</p>
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PayPal just enabled crypto for 650M users: Here’s what that actually means

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