PayPal is making waves in the cryptocurrency space once again. On July 29, 2025, the digital payments behemoth announced the launch of a new service enabling U.S. merchants to accept over 100 cryptocurrencies, a move designed to slash cross-border transaction fees. Dubbed “Pay with Crypto,” this feature will soon be available, allowing customers to use popular crypto wallets like MetaMask and Coinbase to complete their purchases.
Revolutionizing Cross-Border Transactions
The ability to use digital currencies like Bitcoin, Ether, XRP, and stablecoins such as USDC and USDT at checkout signifies a monumental shift in how cross-border transactions are handled. These digital assets cover a whopping 90% of the crypto market cap, making them a powerful tool for international commerce. For merchants, the most enticing part might be the near-instantaneous settlement in U.S. dollars, alongside a service fee of just 0.99%. This is quite the bargain compared to the hefty fees associated with international credit card processing.
“Businesses of all sizes face incredible pressure when growing globally, from increased costs for accepting international payments to complex integrations,” PayPal’s President and CEO, Alex Chriss, remarked. He painted a vivid picture of a shopper in Guatemala purchasing a unique gift from a merchant in Oklahoma City, illustrating the real-world application of this groundbreaking service. This expansion aligns with PayPal’s broader strategy, as discussed in PayPal to Enable Businesses to Accept Bitcoin, Ethereum and Other Cryptocurrencies.
The Broader Impact on the Crypto Ecosystem
This initiative is more than just another feather in PayPal’s cap; it could reshape the landscape of international commerce. By empowering merchants to accept crypto payments, PayPal is not only reducing transaction costs but also potentially increasing profit margins. Merchants get near-instant access to proceeds, which can be stored as PayPal’s U.S. dollar stablecoin (PYUSD) and earn a 4% yield when held within PayPal accounts.
This move is part of PayPal’s broader strategy to delve deeper into the digital asset arena. The company’s journey into this space has been marked by the introduction of its stablecoin PYUSD and strategic partnerships aimed at expanding stablecoin usage globally. Blockchain technology, particularly stablecoins, is increasingly being seen as a more cost-effective and faster alternative for cross-border payments compared to traditional banking systems. It’s a perspective that’s gaining traction, especially as businesses seek more efficient ways to manage international transactions. For more on PayPal’s comprehensive approach to crypto, see BREAKING: PayPal Goes All-In On Crypto Payments—Even Memecoins Are In.
A Step Forward, But Questions Remain
While the promise of reduced fees and faster transactions is enticing, it does raise some questions. How will traditional banking institutions respond to this evolving trend? Could this herald a shift in the balance of power in the financial world? And perhaps most critically, will this trend continue to gain momentum, or will it encounter unforeseen roadblocks?
As PayPal rolls out this service, the eyes of both the crypto community and the broader financial world will be watching closely. The potential for crypto to streamline cross-border commerce is clear, but the path forward is not without its uncertainties. As businesses and consumers alike navigate this new terrain, the implications of PayPal’s bold move could resonate far beyond today’s market.
In the coming months, as more merchants adopt this innovative payment method, it will be fascinating to see how it influences the broader financial ecosystem. The potential for increased adoption of cryptocurrencies in everyday transactions could mark a significant milestone in the journey towards a more digitally-oriented economy. One thing’s for sure: PayPal’s latest venture is a clear signal that the future of payments is evolving, and cryptocurrencies are playing a pivotal role in shaping that future.
Source
This article is based on: PayPal Expands Crypto Payments for U.S. Merchants to Cut Cross-Border Fees
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
