PayPal is rolling out a new tool that lets U.S. merchants accept payments in over 100 cryptocurrencies, including Bitcoin, Ether, Solana, and stablecoins like USDT, USDC, and PayPal’s own PYUSD. The feature is said to simplify cross-border transactions and expand the use of PYUSD in everyday commerce.
The new option allows customers to pay using crypto wallets such as Coinbase Wallet, MetaMask, OKX, Kraken, Binance, Phantom, and Exodus. Merchants, however, won’t be exposed to crypto price swings — payments will be converted at checkout into either PYUSD or fiat currency.
PayPal is charging a 0.99% transaction fee, which it says is far lower than standard credit card fees. Visa, for comparison, typically charges at least 1.75%.
The company said the service is initially limited to U.S.-based merchants, with New York excluded for now.
The launch comes as PYUSD’s market cap has nearly doubled in 2024 — rising from $497 million to $894 million. It also adds pressure in an increasingly competitive space, as rivals like Stripe and Coinbase push their own crypto payment tools.
Stripe introduced stablecoin payments last October and has since expanded support to Coinbase’s Base network. Meanwhile, Coinbase has long offered merchant crypto tools through its Commerce product and, more recently, its x402 protocol, which enables automated crypto transactions via API.
The timing of PayPal’s expansion follows the recent passage of the GENIUS Act — legislation offering a regulatory framework for stablecoins. The law has encouraged companies like PayPal to build out crypto services with clearer legal backing.
Small and mid-sized businesses are showing more interest in accepting crypto, especially in industries like retail, travel, e-commerce, and real estate, where faster settlement and lower costs can make a difference.
The disclosure comes shortly after PayPal and Coinbase announced a partnership to waive trading fees on PYUSD. Users can now buy, sell, and redeem PYUSD on Coinbase without platform charges and convert the stablecoin to U.S. dollars at a 1:1 rate.
Coinbase previously reserved zero-fee treatment for only one stablecoin—Circle’s USDC, the second-largest stablecoin by market value.
In an effort to expand PYUSD’s footprint, PayPal deployed the token on Solana in May 2024 and partnered with Anchorage Digital to build a reward system around the stablecoin. The company also teamed up with MoonPay to offer more payment methods for PYUSD purchases.
