PayPal Expands Global Payments with “Pay with Crypto” and 100+ Token Options

PayPal has launched a new feature that significantly expands its crypto payment capabilities. U.S.-based merchants can now accept over 100 cryptocurrencies directly through PayPal, including both major assets and smaller tokens. The feature, called “Pay with Crypto,” allows customers to pay with digital currencies while merchants receive U.S. dollars or PayPal’s stablecoin, PYUSD. This system protects merchants from crypto price volatility while opening the door to a much broader global customer base.

The move builds on PayPal’s previous crypto integrations and shows a continued commitment to digital asset infrastructure. Through partnerships with major wallets and exchanges, PayPal’s crypto strategy now connects to over 650 million global users. The service simplifies crypto-to-fiat transactions for merchants, reducing complexity and offering lower transaction fees than traditional international payments.

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

Supported Tokens and Wallets: Broad Compatibility at Launch

The new feature supports more than 100 tokens, covering approximately 90% of the total crypto market capitalization. These include Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, Avalanche (AVAX), and major stablecoins like USDC and USDT. PayPal also includes support for popular memecoins and altcoins, catering to the wide preferences of today’s crypto users.

Wallet compatibility is another key strength of the system. Customers can use Coinbase Wallet, MetaMask, OKX Wallet, Binance Wallet, Kraken Wallet, Phantom, and Exodus. PayPal plans to expand wallet support even further to ensure more users can access the feature. This open-wallet approach gives customers flexibility and makes the platform more inclusive.

By covering a large portion of the crypto landscape, PayPal enables merchants to reach diverse audiences across many communities and ecosystems. This level of accessibility is essential for real growth in digital payments adoption.

Crypto Conversion and Fiat Settlement: How It Works

When a consumer chooses to pay with crypto, the transaction converts into either USD or PYUSD at the time of payment. This conversion happens immediately, locking in the crypto price and removing risk from market fluctuations. PayPal uses its own on-chain infrastructure and integrations with exchanges to process these conversions securely and efficiently.

Merchants do not handle crypto directly. Instead, they receive their revenue in fiat currency as if it were a standard card payment. This allows even crypto-skeptical merchants to participate in digital payments without managing digital wallets or worrying about token custody.

This structure also allows PayPal to offer a unified experience for reconciliation, settlement, and customer service. Payments appear in a merchant’s PayPal dashboard just like any other transaction, simplifying operations.

⚡️ Latest: PayPal to expand its PYUSD stablecoin to Arbitrum blockchain. pic.twitter.com/iqcPLRkzpa

— Real World Asset Watchlist (@RWAwatchlist_) July 16, 2025

Fee Structure: Competitive Rates for Early Adoption

PayPal has introduced a promotional fee of 0.99% per transaction, available through July 31, 2026. After the promotional period, the fee increases to 1.5%. These fees are lower than typical credit card cross-border fees, which often exceed 3%.

This cost reduction is especially meaningful for merchants selling internationally. Cross-border fees have traditionally made global expansion expensive for smaller businesses. By offering crypto payment acceptance at a lower cost, PayPal makes global commerce more accessible.

Consumers benefit as well. They avoid foreign exchange markups and may find it easier to use crypto wallets than convert to local currency when buying from abroad.

Integration with PYUSD: Strengthening Stablecoin Use

PayPal uses its own stablecoin, PYUSD, to facilitate transactions when appropriate. PYUSD is a U.S. dollar-pegged asset that PayPal launched in 2023 and operates on Ethereum. This stablecoin has gradually gained traction in digital commerce, and its use in crypto payments strengthens its utility and credibility.

Merchants that choose to hold PYUSD rather than converting to fiat can earn approximately 4% APY by storing their balance within PayPal. This yield option provides an incentive to keep capital in the system and reflects growing interest in stablecoin-based financial services.

PYUSD’s use also supports broader goals around stablecoin transparency and regulation. With PayPal’s stablecoin under U.S. regulatory review since its launch, the platform’s structured approach could support future policy development.

Regulatory and Geographic Limitations

Currently, the feature is available only to U.S.-based merchants. Consumers worldwide can use the service, but merchants must operate within the U.S. PayPal has excluded New York state due to pending approval from the New York Department of Financial Services (NYDFS).

PayPal notes that crypto balances, including PYUSD, are not insured by the FDIC or SIPC. Users bear blockchain custody risks, and those risks must be clearly disclosed in compliance with existing laws.

While the regulatory framework around stablecoins and crypto payments remains fluid, PayPal’s conservative approach may help it remain compliant as policies evolve.

Practical Adoption of Digital Assets

PayPal’s new crypto payment feature offers practical benefits for both merchants and consumers. It streamlines payments, reduces fees, and protects participants from volatility. Its integration with major wallets and its support for over 100 tokens make it one of the most accessible crypto payment solutions launched by a mainstream financial company.

The feature could drive broader use of stablecoins, increase crypto’s presence in daily commerce, and give merchants new tools to scale globally. While limited to the U.S. for now, PayPal’s infrastructure appears ready for international expansion pending regulatory approval.

As other players like Stripe, Shopify, and Coinbase also expand their crypto services, competition will likely bring even better rates and more flexible offerings. PayPal’s launch raises the bar—and sets a new benchmark for crypto payment adoption within traditional fintech platforms.

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