PayPal, the US digital payments company, has officially launched a new virtual currency payment service, "Pay with Crypto," in the US market. It is expected to be fully available to merchants nationwide in the coming weeks. This service not only supports over 100 major cryptocurrencies but also integrates deeply with PayPal's own stablecoin, "PayPal USD" (PYUSD), aiming to bridge the gap between virtual currencies and mainstream commercial transactions.
The key feature of "Pay with Crypto" is its ability to instantly convert user virtual currency payments into fiat currency (such as US dollars) or PYUSD, and process these payments directly through PayPal's existing payment platform. This means that even merchants unfamiliar with or unwilling to bear the risk of cryptocurrency price fluctuations can easily implement this new payment method, just like using a standard online credit card or digital wallet transaction.
According to information released by PayPal, the service currently supports more than 100 cryptocurrencies, including major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). The support range on the wallet side is also quite wide, including Coinbase, MetaMask, Binance, Kraken, OKX, Phantom, Exodus and other mainstream wallet application services, which can be seamlessly connected, and more access platforms are expected to be expanded in the future.
Regarding transaction fees, "Pay with Crypto" charges a fixed 0.99% service fee. PayPal emphasizes that this is significantly lower than traditional international credit card fees or SWIFT wire transfers, potentially saving up to 90% in fees. More importantly, merchants receive virtual currency payments almost instantly, significantly improving cash flow and capital turnover efficiency.
Additionally, if merchants choose to hold funds in PYUSD, PayPal offers a similar deposit-based income mechanism, with an annual return of approximately 4%. This design not only increases the incentive for stablecoin adoption but also allows merchants to gain additional revenue while maintaining funding flexibility.
PayPal noted that the global market capitalization of cryptocurrencies has surpassed $3 trillion, and the number of virtual currency users has surpassed 6 million, demonstrating that crypto assets are becoming a new and promising force in consumer spending and payments. By launching the "Pay with Crypto" service, PayPal hopes to help merchants quickly enter this market and embrace the next generation of digital finance.
In fact, PayPal has gradually deepened its investment in the field of cryptocurrency in recent years, from allowing users to purchase, hold, and transfer crypto assets such as Bitcoin, to launching its own stablecoin PYUSD in 2023, and then to the full opening of virtual currency payment functions this time, showing that it is actively transforming towards a Web3 business model.
PayPal will also have the opportunity to expand this service to more regions and platforms in the future, allowing more merchants around the world to introduce decentralized digital asset payment capabilities to a familiar and trusted payment platform. For cryptocurrency holders, this means that their cryptocurrencies are no longer just investment tools, but truly "spendable" digital assets.
As the global payment industry continues to move towards diversification and digitalization, PayPal's approach may become a starting point for other financial technology companies to follow, allowing cryptocurrency payments to gradually move from concept to daily life.
PayPal recently announced the launch of the global payment platform "PayPal World". In addition to its own payment system, the first wave of partners include Mercado Pago, India's NPCI International Payments Limited (UPI), Tenpay Global (Tencent's cross-border payment platform) and the US mobile payment service Venmo. This innovative platform will integrate multiple mainstream digital wallets and payment systems, allowing nearly 20 billion users to make cross-border payments, transfers and shopping. It is expected to be officially launched this fall and will become an important layout for PayPal to create a unified global digital payment portal.
