The fintech giant PayPal has introduced a new service called “Pay with Crypto,” allowing businesses in the U.S. to accept payments in over 100 cryptocurrencies, ranging from major coins like Bitcoin and Ethereum to notable memecoins such as TRUMP and FARTCOIN. This is a groundbreaking step, bringing PayPal deeper into the world of cryptocurrencies.
How Does the Service Work?
Unlike previous services that supported only a few major coins, PayPal has expanded its offerings to include stablecoins and memecoins. When customers pay with cryptocurrency, the PayPal system automatically converts that coin into PYUSD (a stablecoin issued by PayPal through Paxos). PayPal then sells these tokens on centralized exchanges like Coinbase or decentralized platforms like Uniswap, transferring the USD back to the business.
The entire process happens “behind the scenes,” so businesses do not need to own a cryptocurrency wallet or have knowledge of blockchain technology. This makes accepting crypto payments simpler and more user-friendly than ever.
Launched in 2023, PYUSD is currently the 12th largest stablecoin in the world, with a market capitalization of nearly $900 million. This coin is backed 1:1 by USD and U.S. Treasury bonds, providing high reliability. However, users should note that PYUSD is not insured by the FDIC or SIPC when stored in a PayPal wallet.
Related: Solana Co-Founder Calls Memecoins and NFTs Digital Slop
Costs and Benefits
PayPal applies a fee of 0.99% in the first year, increasing to 1.5% thereafter, which is still much lower than traditional credit card processing fees. According to CEO Alex Chriss, this service helps businesses:
- Reach global customers more easily.
- Reduce transaction costs.
- Optimize cash flow with quick payments.
Currently, “Pay with Crypto” is only available for U.S. businesses, but PayPal plans to expand to international markets starting in 2026, prioritizing Europe and Southeast Asia. The service supports major cryptocurrency wallets like Coinbase, Binance, OKX, Kraken, Phantom, MetaMask, and Exodus. PayPal is also considering integrating with layer-2 networks like Base or zkSync to reduce gas fees when transacting PYUSD, helping users save costs.
Additionally, PayPal offers an “Earn” program that pays an interest rate of 3.7% for users holding PYUSD in their accounts, simply by enabling this feature. According to Paxos, the recent growth of PYUSD primarily comes from its use in retail payments rather than speculative activities.
Why Is This Service Important?
“Pay with Crypto” not only helps businesses tap into the cryptocurrency trend but also simplifies the integration of blockchain technology into their operations. With diverse coin support, low fees, and an automated process, PayPal is creating a bridge between traditional finance and the DeFi world.
