TLDR
- PayPal is bringing a new use case to crypto.
- Pay with Crypto allows users to pay with crypto while the business receives their currency of choice.
- Users can also hold PYUSD in their wallet and earn interest (via a Coinbase partnership).
PayPal dropped some seriously exciting news that’s about to change how we think about crypto payments at the end of July. And yes, we know we’re a bit late to this party. But that’s ok.
The fintech giant has launched “Pay with Crypto“, a new feature that’s adding digital assets to PayPal’s already user-friendly app. It’s also slashing transaction fees by up to 90%.
If you’ve ever wondered whether crypto could actually become part of everyday commerce, this might be your answer. PayPal is bridging the gap between traditional payments and the crypto world in a way that actually makes sense for regular folks and businesses. Let’s get after it.
Pay with Crypto — The Payment System We Deserve
Think of Pay with Crypto as a universal translator for digital money. It connects merchants to over 100 different cryptocurrencies and popular wallets like Coinbase and MetaMask, then instantly converts your crypto into stablecoins or regular old-fashioned dollars (fiat currency, if we’re being fancy).
The magic happens behind the scenes. A customer in Guatemala can buy something from a shop in Oklahoma City using Bitcoin, Ethereum, or any of the other 100+ supported cryptocurrencies. The merchant receives payment in whatever form they prefer, and everyone’s happy.
Here’s what makes it special:
- 100+ cryptocurrency support including Bitcoin (BTC), Ethereum (ETH), Tether (USDT), XRP, Binance Coin (BNB), Solana, and USD Coin (USDC)
- Multiple wallet connections with Coinbase, OKX, Binance, Kraken, Phantom, MetaMask, and Exodus (with more coming)
- Near-instant settlement so merchants don’t wait days for their money
- Global reach breaking down those pesky international payment barriers
The Numbers That Actually Matter
Let’s talk about the stuff that hits your wallet directly. PayPal’s Pay with Crypto charges just 0.99% per transaction. Compare that to international credit card processing fees, and you’re looking at savings of up to 90%.
For a business owner, this isn’t just pocket change — it’s potentially thousands of dollars saved annually. And for crypto users? It means your digital currencies finally have a practical use case that doesn’t involve explaining blockchain tech to confused cashiers.
The platform taps into a market of over 650 million crypto users worldwide and connects them to a nearly $4 trillion cryptocurrency market. Those are impressive numbers, but more than that, they represent real people with real digital money looking for places to spend it.
How Pay With Crypto Impacts Businesses
Small businesses have always gotten the short end of the stick when it comes to payment processing fees, especially for international transactions. PayPal’s new system flips that script entirely.
Imagine you’re running an online store selling handmade jewelry. Previously, accepting an international payment meant paying hefty fees and waiting days for settlement. Now, a customer in Japan can pay you in their preferred cryptocurrency, and you receive the funds almost instantly at a fraction of the cost.
The system also opens doors to new customer bases. Those 650 million crypto users weren’t just sitting on their digital assets for fun — many were waiting for the day when they could actually use them to buy stuff. Now they can shop at any business using PayPal’s system.
What About PayPal’s PYUSD Stablecoin?
Good ole PYUSD. When it was first launched, it had close to zero use cases. But the company kept pushing and pushing, and now it’s a stablecoin that’s proving to be a contender.
It has quietly amassed over a one billion dollar market cap with over $50 million a day in volume. While that doesn’t come close to USDT or USDC, Rome wasn’t built in a day, and PayPal is looking to play the long game.
PYUSD plays a starring role in this ecosystem. Users can earn 4% on PYUSD holdings when stored with PayPal via a partnership with Coinbase, which is pretty attractive compared to traditional savings accounts.
For newcomers to crypto, stablecoins like PYUSD offer a gentler introduction to digital currencies. They’re designed to maintain a stable value (usually pegged to the US dollar), so you don’t have to worry about wild price swings while you’re learning the ropes.
The Stuff You Need to Know
If you’re new to crypto and this sounds appealing, here’s the good news: you don’t need to become a blockchain expert overnight. PayPal’s system handles all the complex stuff behind the scenes.
To use Pay with Crypto as a customer, you’ll need:
- A supported crypto wallet (like Coinbase or MetaMask)
- Some cryptocurrency in that wallet
- A merchant that accepts PayPal’s crypto payments
The process is designed to be as simple as any other online payment. Select crypto as your payment method, choose your wallet, confirm the transaction, and you’re done — all through the PayPal app.
One of the biggest concerns for crypto newcomers is security. PayPal brings its reputation and security infrastructure to crypto payments, which should provide some comfort for those worried about digital asset safety.
The platform uses established security protocols and connects with reputable wallet providers. While no system is 100% foolproof, PayPal’s involvement adds a layer of institutional backing that pure crypto transactions sometimes lack.
The Future of Digital Payments Is Crypto
PayPal’s Pay with Crypto isn’t just another tech announcement — it’s a bridge between the traditional financial world and the crypto ecosystem. By making crypto payments as easy as traditional transactions while dramatically reducing costs, PayPal is solving real problems for real people. And they’re doing it today.
Whether you’re a business owner tired of high international transaction fees, a crypto holder looking for practical uses for your digital assets, or someone curious about cryptocurrency, this development offers something valuable.
The system launched for US customers first, with broader expansion likely to follow. If this rollout goes well, don’t be surprised to see crypto payments becoming as common as credit cards at your favorite online stores.
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