PayPal Drives Crypto Payments into the Mainstream, Reducing Costs and Expanding Global Commerce

Rhea-AI Summary

PayPal (NASDAQ:PYPL) has announced a groundbreaking crypto payment solution called Pay with Crypto, enabling merchants to tap into a $3+ trillion market while reducing transaction fees by up to 90%. The platform supports 100+ cryptocurrencies and major wallets like Coinbase and MetaMask, connecting to over 650 million crypto users globally.

The solution offers a competitive 0.99% transaction rate and allows merchants to earn 4% rewards on PYUSD holdings. PayPal's integration follows its recent PayPal World launch, which unified five major global digital wallets. The service will be available to U.S. merchants in the coming weeks, supporting major cryptocurrencies including BTC, ETH, USDT, XRP, BNB, Solana, and USDC.

Positive

• Transaction fees reduced by up to 90% compared to international credit card processing
• Access to $3+ trillion crypto market and 650 million crypto users globally
• Competitive 0.99% transaction rate for crypto payments
• 4% rewards earning potential on PYUSD holdings
• Support for 100+ cryptocurrencies and major digital wallets
• Near-instant settlement and seamless international transactions

Negative

• NYDFS approval still pending for New York residents
• No FDIC/SIPC protection for digital assets including PYUSD
• Exposure to blockchain network and custody risks
• Regulatory uncertainty in digital asset services
• Risk of service suspension due to illegal activity or system failures

News Market Reaction – PYPL

+0.31%

20 alerts

+0.31% News Effect

-5.0% Trough in 2 hr 27 min

+$235M Valuation Impact

$76.07B Market Cap

0.5x Rel. Volume

On the day this news was published, PYPL gained 0.31%, reflecting a mild positive market reaction. Argus tracked a trough of -5.0% from its starting point during tracking. Our momentum scanner triggered 20 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $235M to the company's valuation, bringing the market cap to $76.07B at that time.

Data tracked by StockTitan Argus on the day of publication.

Pay with Crypto powers near-instant settlement, seamless international transactions and
provides transaction fee savings of up to 90%

SAN JOSE, Calif., July 28, 2025 /PRNewswire/ -- Businesses around the world lose billions annually in cross border fees while navigating a complex banking system to make and accept payments. Today, PayPal is simplifying cross-border commerce for merchants by connecting an unmatched combination of cryptocurrencies, digital wallets, and merchants worldwide, while simultaneously reducing transaction fees by up to 90%.¹ 

Pay with Crypto, powered by PayPal, connects merchants to a $3+ trillion² market, by enabling instant crypto to stablecoin or fiat conversion. Supporting transactions across 100+ cryptocurrencies and wallets such as Coinbase and MetaMask, the solution expands merchant revenue opportunities and taps into a global base of more than 650 million crypto users³. Additionally, with a transaction rate of 0.99%⁴, Pay with Crypto decreases the cost of transactions by up to 90% when compared to international credit card processing.

"Businesses of all sizes face incredible pressure when growing globally, from increased costs for accepting international payments to complex integrations. Today, we're removing these barriers and helping every business of every size achieve their goals," said Alex Chriss, President and CEO, PayPal. "Imagine a shopper in Guatemala buying a special gift from a merchant in Oklahoma City. Using PayPal's open platform, the business can accept crypto for payments, increase their profit margins, pay lower transaction fees, get near instant access to proceeds, and grow funds stored as PYUSD at 4%⁵ when held on PayPal." 

Pay with Crypto advances PayPal's mission to transform commerce by integrating crypto and digital currencies into a unified platform that connects fiat and digital payments. It offers consumers diverse payment options and unlocks global growth for merchants. PayPal empowers U.S. merchants to accept crypto payments, improve efficiency, attract customers, earn rewards for PYUSD held with PayPal, and send faster, low-cost payments to freelancers and vendors using PYUSD. Recently the company also announced an agreement with Fiserv to expand stablecoin use globally to drive greater business efficiency.

"Last week, we launched PayPal World, our global partnership bringing together five of the world's largest digital wallets on a single platform, fundamentally reimagining how money moves around the world. By enabling seamless cross-border crypto payments, we're breaking long-standing barriers in global commerce," Chriss added. "These innovations don't just simplify payments—they drive merchant growth, expand consumer choice, and reduce costs. This is the future of inclusive, borderless commerce, and we're proud to lead it."

Pay with Crypto, powered by PayPal, will be available to U.S. merchants in the coming weeks. Covering 90% of the $3+ trillion Crypto Market Cap, Pay with Crypto offers the ability to pay with 100 cryptocurrencies including BTC, ETH, USDT, XRP, BNB, Solana, USDC and many others and connect wallets including Coinbase, OKX, Binance, Kraken, Phantom, MetaMask, and Exodus with more to come.

IMPORTANT DISCLOSURES
This press release is for informational purposes only and is not intended as financial, investment, or other advice. The use and exchange of digital assets, including stablecoins such as PYUSD, may involve complex risks, including but not limited to:

• NYDFS Approval: Any materially new product or service for New York residents requires approval from the New York State Department of Financial Services (NYDFS). As of today, PayPal has not received such approval.
• Network & Custody Risks: Transactions on blockchains – and the blockchains themselves – are subject to a range of operational, technological, and security risks. Users are responsible for safeguarding their private keys and/or working with reputable custodians/wallet providers; loss of access may lead to the permanent loss of funds.
• Third-Party Reliance: Digital assets rely on third-party blockchain software and network infrastructure. Neither PayPal nor Paxos Trust Company, LLC ("Paxos") has control over blockchain networks and is not liable for any blockchain's performance, security, or ongoing availability.
• Redemption and Market Risk of Fiat-Backed Stablecoins: U.S. dollar- backed stablecoins that are regulated by the New York State Department of Financial Services, are designed to maintain a stable value of one U.S. dollar per token. Individuals or entities with direct redemption access via PayPal, Paxos or authorized partners are guaranteed to convert PYUSD 1:1 for US dollars. All other parties may be limited to selling PYUSD at market prices.
• Regulatory Uncertainty: Regulatory frameworks for digital assets are evolving. Availability or legality of digital asset services may change without notice, and services may be restricted, suspended, or terminated in certain jurisdictions as required by law or regulation.
• No FDIC/SIPC Protection: Digital assets, including PYUSD, are not insured by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC).
• Terms & Conditions: Use of PYUSD is subject to Paxos and PayPal's Terms & Conditions, including disclaimers on liability and user responsibilities. Transactions are irreversible once recorded on the blockchain. You are advised to review and understand all applicable terms.
• Service Availability & Illegal Activity: PYUSD and related payment services may be suspended or terminated due to events or investigations involving illegal activity, system failure, or other factors beyond PayPal's control.
• Forward-Looking Statements: Statements in this press release regarding potential product features, expansion plans, and regulatory outcomes are forward-looking and subject to change. Actual results may differ materially due to known and unknown risks, uncertainties, and other factors.

1. Comparison of Pay with Crypto transaction rate and direct credit card processing fees for international sales including currency conversion fees by leading payment processor
2. Based on CoinGecko analysis of cryptocurrency industry marketcap
3. Crypto.com, Crypto Market Sizing Report, February 2025
4. 0.99% represents Pay with Crypto transaction rate until July 31, 2026
5. Current rewards rate for PYUSD as of today. Rewards rate is subject to change. Terms apply.

About PayPal USD (PYUSD)
PayPal USD is issued by Paxos Trust Company, LLC, a fully chartered limited purpose trust company. Paxos is licensed to engage in Virtual Currency Business Activity by the New York State Department of Financial Services. Reserves for PayPal USD are fully backed by U.S. dollar deposits, U.S. Treasuries and similar cash equivalents, and PayPal USD can be bought or sold through PayPal and Venmo at a rate of $1.00 per PayPal USD. 

PayPal, Inc. (NMLS ID #: 910457) is licensed to engage in Virtual Currency Business Activity by the New York State Department of Financial Services.

About PayPal
PayPal has been revolutionizing commerce globally for more than 25 years. Creating innovative experiences that make moving money, selling, and shopping simple, personalized, and secure, PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy. For more information, visit https://www.paypal.com, https://about.pypl.com/ and https://investor.pypl.com/.

Media Contact:
PayPal Media Relations
MediaRelations@paypal.com 

View original content to download multimedia:https://www.prnewswire.com/news-releases/paypal-drives-crypto-payments-into-the-mainstream-reducing-costs-and-expanding-global-commerce-302514424.html

SOURCE PayPal Holdings, Inc.

FAQ

What is PayPal's new Pay with Crypto service and how does it work?

Pay with Crypto is PayPal's new payment solution that enables merchants to accept 100+ cryptocurrencies with a 0.99% transaction fee, offering instant crypto to stablecoin or fiat conversion and supporting major wallets like Coinbase and MetaMask.

How much can merchants save using PayPal's Pay with Crypto compared to traditional payments?

Merchants can save up to 90% on transaction fees compared to international credit card processing, with Pay with Crypto charging only 0.99% per transaction.

What cryptocurrencies does PayPal's Pay with Crypto support?

The service supports over 100 cryptocurrencies including BTC, ETH, USDT, XRP, BNB, Solana, USDC, and connects with major wallets like Coinbase, OKX, Binance, Kraken, Phantom, MetaMask, and Exodus.

When will PayPal's Pay with Crypto be available to merchants?

Pay with Crypto will be available to U.S. merchants in the coming weeks following the July 28, 2025 announcement.

What rewards can merchants earn with PayPal's PYUSD holdings?

Merchants can earn 4% rewards when holding PYUSD on PayPal, though this rate is subject to terms and conditions and may change.

What are the risks associated with PayPal's Pay with Crypto service?

Key risks include no FDIC/SIPC protection, blockchain network and custody risks, regulatory uncertainty, and potential service suspension due to illegal activity or system failures.