Payments platform PayPal is set to roll out a new feature for US merchants to accept payments with over 100 cryptocurrencies, targeting overseas transactions and more utility of its own stablecoin.
According to a Monday announcement, businesses will be able to accept Bitcoin (BTC), Ether (ETH), Solana (SOL), USDt (USDT), USD Coin (USDC) and XRP (XRP), among others. The tool integrates with crypto wallets including Coinbase Wallet, MetaMask, OKX, Kraken, Binance, Phantom, and Exodus.
Transactions paid with cryptocurrencies will be automatically converted into PayPal’s stablecoin PYUSD or fiat currency at checkout, allowing merchants to receive crypto payments without dealing with price volatility.
PayPal will charge merchants a 0.99% transaction fee for crypto payments, which it claims is 90% lower than typical credit card processing costs. For comparison, Visa’s fees start at 1.75% of a transaction cost.
The feature aims to simplify cross-border transactions, which PayPal said are often expensive and challenging for small and medium-sized businesses. For now, it is only available to US-based merchants, with the exclusion of New York residents.
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PayPal joins Stripe and Coinbase in the race to streamline global crypto payments
The move comes as PYUSD’s market capitalization has risen by nearly 80% since January 1, climbing to $894 million from $497 million, according to data from CoinGecko. It also arrives as competitors, such as Stripe, continue to roll out new features for cross-border crypto payments.
In October 2024, Stripe launched a stablecoin payment option for USD Coin that saw adoption from users in 70 countries on its first day. In June, the fintech company partnered with Coinbase to integrate fiat-to-crypto services across both platforms. Stripe added support for Coinbase’s Base network, while Coinbase Wallet incorporated Stripe’s fiat on-ramp.
Fintech payment platforms like Stripe and PayPal are expanding their crypto payment offerings, but centralized exchanges like Coinbase have worked on crypto merchant tools for some time. In 2018, the exchange launched Coinbase Commerce, allowing merchants to accept crypto on platforms like Shopify and WooCommerce.
In 2024, Coinbase released the x402 protocol, a payment system that enables crypto transactions over standard HTTP. Designed for APIs and AI agents, it allows automated systems to send and receive stablecoins, primarily USDC, on the Base network.
Related: GENIUS Act Spurs Shift to Payment Utility in Stablecoins
Regulatory clarity drives stablecoin and crypto payment growth
PayPal’s new feature follows the recent passage of the GENIUS Act. The legislation provides a regulated pathway for companies like PayPal to expand services involving and integrate stablecoins into their payment infrastructure.
Small businesses worldwide are also warming up to crypto payments. Industries like food and beverage, retail, travel, e-commerce and even real estate have turned to accepting crypto payments for its speed and lower costs.
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