If you’ve ever tried to sell something internationally or pay a freelancer overseas, you know the frustration: fees pile up, transfers drag on, and by the time the money hits your account, a chunk of it has vanished. PayPal thinks it has found a way to change that with its latest innovation, "Pay with Crypto." Announced on July 28, 2025, this new service allows U.S. merchants to accept payments from anywhere in the world using more than 100 cryptocurrencies, including Bitcoin, Ethereum, and stablecoins, while getting paid out instantly in dollars or PayPal’s own stablecoin, PYUSD.
PayPal’s bold move aims to tackle one of the longest-standing headaches in global commerce: the high cost and slow speed of cross-border payments. Traditionally, international credit card processing fees can range from 1.5% to 3.5%, often cutting deeply into merchants’ profits. PayPal’s new offering promises fees as low as 0.99%, potentially slashing costs by up to 90%. This could be a game-changer for small businesses and freelancers who rely on international transactions but have been hampered by expensive and sluggish payment systems.
How does it work? When a customer pays with cryptocurrency through wallets like Coinbase, MetaMask, Binance, or Kraken, PayPal’s system automatically converts the crypto into U.S. dollars or PYUSD, its stablecoin backed by the U.S. dollar. Merchants receive their payments almost instantly, without worrying about the volatile swings often associated with cryptocurrencies. This seamless conversion means sellers don’t have to hold crypto if they don’t want to, sidestepping the risks of price fluctuations.
Alex Chriss, PayPal’s president and CEO, explained the vision behind the service: "Building on our 25+ years in payments, we let users link their wallet, pay with any token, convert it instantly to PYUSD, and deliver USD to merchants in seconds. The result? Merchants pay less in fees and can instantly use funds." He added, "Imagine a shopper in Guatemala buying a gift from a small shop in Oklahoma City. With PayPal’s open platform, that shop can accept crypto, pay lower fees, get paid almost instantly, and even earn interest on funds held as PYUSD."
This innovation is part of PayPal’s broader push to integrate stablecoins and digital currencies into everyday payments, expanding consumer choice while simplifying the complexities of cross-border commerce. The company recently launched PayPal World, a platform connecting five major digital wallets to facilitate faster and cheaper international money movement. "These innovations don’t just simplify payments," Chriss said. "They drive merchant growth, expand consumer choice, and reduce costs. This is the future of borderless commerce."
The potential market is enormous. With over 650 million cryptocurrency users worldwide and a crypto market valued at more than $3 trillion, PayPal is positioning itself to tap into a vast pool of digital currency holders eager to spend their assets in real-world transactions. Tens of millions of merchants globally already use PayPal, making this service a natural extension of its existing infrastructure.
However, PayPal is quick to acknowledge the risks and challenges that come with cryptocurrency payments. Regulations around crypto are still evolving, and unlike traditional bank deposits, crypto holdings are not FDIC insured. Moreover, if a user loses access to their crypto wallet, there is no way to recover the funds. Chriss highlighted these issues, noting, "Cryptocurrency promised a more affordable financial system and instant global transfers. But challenges persist: extreme price volatility, complex wallets prone to errors, and irreversible transactions with no easy way to issue refunds. Pay with Crypto helps relieve these challenges."
For now, the "Pay with Crypto" service will roll out to U.S. merchants in a beta version in the coming weeks, with broader availability planned later in 2025. PayPal is offering a promotional transaction rate of 0.99% until July 31, 2026, which is notably lower than typical credit card fees. This introductory offer could encourage many businesses to try the new system and experience its benefits firsthand.
Adding to the momentum for digital currencies, recent legislative developments in the United States have begun to shape a clearer framework for crypto and stablecoins. Just last week, former President Donald Trump signed the GENIUS Act, the first major crypto legislation passed by Congress. This law establishes regulatory guidelines for the $250 billion stablecoin market, providing more certainty for companies like PayPal that are integrating these digital assets into their payment systems.
As cryptocurrencies continue to mature from niche assets into mainstream financial tools, PayPal’s "Pay with Crypto" could mark a significant step toward making digital currencies practical for everyday commerce. By reducing fees, speeding up payments, and offering a user-friendly interface compatible with major wallets, PayPal is betting on a future where buying and selling across borders is as easy as clicking "pay"—no matter what currency you hold.
Of course, the success of this initiative will depend on how quickly merchants and consumers embrace crypto payments and how regulators continue to shape the landscape. But one thing is clear: PayPal is pushing the boundaries of what’s possible in the payments industry, aiming to make the global economy a little smaller and a lot more connected.
