PayPal now lets merchants pay with crypto
PayPal will introduce a new “Pay With Crypto” feature for U.S. merchants, enabling them to accept over 100 cryptocurrencies, with a pilot launching in the coming weeks.
PayPal is set to expand the utility of digital currencies within its ecosystem by allowing merchants in the United States to accept a wide array of cryptocurrencies as payment. This initiative, termed “Pay with Crypto,” extends beyond established cryptocurrencies like Bitcoin and Ethereum. Merchants will soon have the capability to process payments involving meme-tier tokens, including DOGE and the Trump memecoin.
The “Pay with Crypto” feature was announced on a Monday. Its rollout will commence with a pilot program for U.S. merchants in the coming weeks, with broader availability anticipated later in the year. Upon a merchant accepting a payment made with one of the supported cryptocurrencies, PayPal will automatically convert the digital funds into either fiat currency or the company’s proprietary PYUSD stablecoin. The transaction fee for “Pay with Crypto” is set at 0.99 percent, a rate presented as substantially lower than typical credit card processing fees.
PayPal states that this new feature aligns with its objective to “drive crypto payments into the mainstream.” Interviews conducted by Fortune and Bloomberg with PayPal leaders indicated that the “Pay with Crypto” feature is specifically tailored to assist small merchants. PayPal CEO Alex Chriss, in a press release, noted the potential benefits for such businesses. He stated, “Imagine a shopper in Guatemala buying a special gift from a merchant in Oklahoma City. Using PayPal’s open platform, the business can accept crypto payments, increase profit margins, lower transaction fees, access funds instantly, and even earn up to 4% APY when storing funds as PYUSD on PayPal.”
This development by PayPal follows the return of a crypto-enthusiastic administration to The White House. The company is actively addressing a core challenge within the digital currency sector: the limited utility of cryptocurrencies for direct purchases. Spendability has historically been a significant hurdle for cryptocurrency adoption, contrasting with the brief prominence of NFTs as a form of “ownership.” This move by PayPal aims to provide cryptocurrency holders with a more direct method for utilizing their digital assets for transactions rather than solely for speculative purposes. This initiative also coincides with recent performance milestones for Bitcoin, which surpassed $100,000 per 1 BTC for the first time in 2024. As of this writing, a single Bitcoin is valued at approximately $118,000, according to Coinbase.
PayPal has specified that the transaction fee for merchants will be 0.99 percent for the initial year. According to Fortune, this fee will increase to 1.5 percent subsequent to the first year. This article was updated on July 28, 2025, at 5:20 p.m. EDT, to include additional information from PayPal.