Cryptocurrency officially recognized as a payment method by PayPal
PayPal is set to integrate its own stablecoin, PYUSD, into its business model, marking a significant step towards embracing cryptocurrencies for everyday commerce. The company's new service, "Pay with Crypto," will allow U.S. merchants to accept payments in over 100 different cryptocurrencies, including popular ones like Bitcoin (BTC), Ethereum (ETH), USDT, XRP, BNB, Solana, USDC, and supporting major crypto wallets such as Coinbase, MetaMask, Binance, Kraken, Phantom, and Exodus.
When a consumer pays in cryptocurrency via their connected wallet, PayPal instantly converts the crypto into PYUSD, a stablecoin backed 1:1 by the U.S. dollar, or into fiat currency. This conversion enables merchants to receive payment in U.S. dollars almost immediately.
The service is designed to simplify cross-border commerce by reducing high international credit card fees and delays. It offers a promotional transaction fee of 0.99% until July 31, 2026, which is lower than typical credit card processing fees ranging from about 1.5% to 3.5%. After the promotional period, fees are expected to be around 1.5%, still competitive compared to traditional card rates.
Beyond just payments, holding PYUSD on PayPal can also earn rewards for merchants. The platform aims to enhance global commerce efficiency by enabling faster, lower-cost payments, especially useful for freelancers and vendors worldwide.
The integration of over 100 cryptocurrencies could open up new, lucrative revenue streams for PayPal. The new service, set to be available for U.S. merchants in the coming weeks, is expected to help every company achieve its global expansion goals.
PayPal's transaction fees are significantly cheaper compared to international credit card processing, making it an attractive option for both merchants and consumers. The new service, announced by PayPal CEO Alex Chriss on Monday, demonstrates PayPal's desire to play a leading role in the future market of digital currencies.
It's important to note that the specific transaction fees for PayPal's new crypto service are not provided for transactions beyond the first year. Also, PayPal will sell the supported cryptocurrencies on centralized or decentralized exchanges and then credit merchants with dollars.
Investors will continue to keep an eye on the PayPal stock due to its involvement in the digital currency market. The new service, aimed at removing barriers for companies expanding globally, will initially support wallets from Coinbase, OKX, Binance, Kraken, Phantom, MetaMask, and Exodus. The service will also support some memecoins like $TRUMP and $FARTCOIN.
The company's central role of its own stablecoin PYUSD could make it attractive to a new generation of merchants and customers. However, it's worth mentioning that Mr. Bernd Förtsch, the management and majority shareholder of the publisher Boerse-Medien AG, has entered into direct and indirect positions in the financial instruments mentioned in the publication or related derivatives, which could benefit from the price development resulting from the publication.
In summary, PayPal's "Pay with Crypto" service offers a promising solution for lowering transaction fees, speeding up settlement, and easing cross-border payments, all while providing merchants with the potential to earn rewards. The service is set to revolutionise the way businesses conduct international transactions and could pave the way for a more cryptocurrency-friendly future.
| Feature | Details | |-------------------------------|-------------------------------------------------------------------------------------------| | Supported Cryptocurrencies | 100+ including BTC, ETH, USDT, XRP, BNB, Solana, USDC | | Supported Wallets | Coinbase, MetaMask, Binance, Kraken, Phantom, Exodus, and more | | Conversion Process | Crypto → PYUSD stablecoin or fiat USD → payment to merchant | | Transaction Fees | 0.99% promotional rate until 07/31/2026; then ~1.5% | | Role of PYUSD Stablecoin | Acts as an intermediary to convert crypto payments instantly into U.S. dollars for merchants | | Key Benefits | Lower fees, faster settlement, eases cross-border payments, increases merchant margins |
- The integration of over 100 cryptocurrencies, including popular ones like Bitcoin (BTC), Ethereum (ETH), USDT, XRP, BNB, Solana, USDC, into PayPal's business model, marks a significant step towards embracing technology in finance and business.
- Enabling faster, lower-cost payments is a key benefit of PayPal's new service "Pay with Crypto," which aims to enhance global commerce efficiency, especially for freelancers and vendors worldwide, by utilizing technology for its stablecoin PYUSD and various supported cryptocurrencies in finance.
