As of July 28, 2025, PayPal unveiled its “Pay With Crypto” service, enabling U.S.-based merchants to accept payments in over 100 cryptocurrencies, including Bitcoin, Ethereum, USDT, Solana, XRP and meme coins like DOGE and Trump coin.
How It Works
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Buyers pay in crypto via the merchant’s PayPal checkout.
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The crypto is instantly converted into either U.S. dollars (fiat) or PayPal’s stablecoin, PYUSD, so merchants avoid crypto volatility.
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PayPal starts with a 0.99% introductory fee, later increasing to 1.5%, which is up to 90% cheaper than traditional credit card costs (~1.1–3.1%).
Why It Matters for Merchants & Beginners
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Smooth global commerce: Crypto pays seamlessly across borders, reducing complex banking and foreign exchange hurdles.
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Lower fees: At 0.99%, transaction costs are far below average credit card processing rates, offering meaningful savings, especially for small businesses.
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Quick payouts: Crypto funds settle near-instantly, unlike the 1–3 days typical of card networks .
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Earn while holding: Funds held in PYUSD can earn up to 4% APY, encouraging merchants to hold stablecoins instead of immediate conversion.
Summary & Why It’s Important
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Pay With Crypto enables U.S. merchants to accept 100+ cryptocurrencies, converted to PYUSD or dollars at checkout.
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Merchants pay just 0.99% per transaction which is initially far lower than card fees, rising to 1.5% after year one.
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Features near-instant settlement, minimal volatility risk, and optional yield via PYUSD.
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Especially valuable for small and cross-border merchants, who can access crypto’s global reach and cost advantages.
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Marks PayPal’s major push to mainstream crypto in commerce by connecting to a global crypto user base of over 650 million.
Beginner-Friendly Keywords:
Crypto Payment – Paying using cryptocurrencies like BTC, ETH, USDT instead of cash/cards.
Stablecoin – Crypto pegged to real-world assets (e.g., USD), less price volatility.
PYUSD – PayPal’s own U.S. dollar-backed stablecoin.
Merchant fee – A small percentage taken per transaction (0.99% → 1.5%).
Instant settlement – Crypto transactions finalize immediately in fiat or stablecoin value.
