Imagine a world where your business can accept Bitcoin, Ethereum, and 100+ other cryptocurrencies—without worrying about price volatility or high transaction fees. That future is now a reality, thanks to PayPal’s groundbreaking new feature, “Pay with Crypto.”
With over 650 million crypto users worldwide and a $3+ trillion crypto market, businesses that don’t adapt risk missing out on a massive customer base. PayPal’s latest move simplifies cross-border transactions, reduces fees by up to 90%, and instantly converts crypto into stablecoins or fiat.
But how does it work? What are the benefits for merchants? And is this the beginning of mainstream crypto adoption? Let’s dive in.
Introduction: The Dawn of Crypto Commerce
As the world embraces digital transformation, cryptocurrencies are playing an increasingly prominent role in commerce. Businesses are seeking innovative ways to cater to the growing demand for crypto payments, and PayPal’s latest announcement is a testament to this evolving landscape. Imagine seamlessly integrating Bitcoin and Ethereum transactions into your business, offering customers a modern, secure, and efficient payment experience. With PayPal’s new service, this is no longer a futuristic concept, but a tangible reality.
Why This Matters for Businesses
Accepting cryptocurrencies can provide businesses with several key advantages:
- Expanded Customer Base: By accepting crypto, businesses can tap into a global market of cryptocurrency users who prefer digital assets over traditional fiat currencies.
- Reduced Transaction Fees: Cryptocurrency transactions often come with lower fees compared to traditional payment methods, potentiallyincreasing profit margins.
- Faster Settlement Times: Crypto transactions can settle almost instantly, improving cash flow and reducing the time businesses wait for payments.
- Enhanced Security: Blockchain technology underpins cryptocurrencies, offering a high level of security and transparency in transactions.
How PayPal’s “Pay with Crypto” Works
1. Seamless Crypto-to-Fiat Conversion
When a customer pays with Bitcoin, Ethereum, or other supported cryptocurrencies, PayPal automatically converts the funds into:
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PYUSD (PayPal’s stablecoin)
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Traditional fiat currency (USD, EUR, etc.)
This eliminates crypto volatility risk for merchants while still allowing them to tap into the growing crypto economy12.
2. Supported Cryptocurrencies and Wallets
PayPal supports over 100 cryptocurrencies, including:
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Bitcoin (BTC)
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Ethereum (ETH)
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Solana (SOL)
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XRP (XRP)
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USDT and USDC (stablecoins)
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Even meme coins like TRUMP and FARTCOIN46.
Customers can pay using wallets like:
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Coinbase Wallet
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MetaMask
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Binance, Kraken, Phantom, and Exodus57.
3. Lower Fees Than Credit Cards
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0.99% transaction fee (promotional rate until July 2026)
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1.5% fee afterward—still lower than the 1.5%-3.5% charged by credit cards14.
“Businesses lose billions in cross-border fees. With Pay with Crypto, we’re cutting costs by up to 90%.”
— Alex Chriss, PayPal CEO2.
Why Should Businesses Accept Crypto Payments?
1. Access to a Global Customer Base
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650 million crypto users worldwide8.
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Cross-border transactions become faster and cheaper.
2. Higher Profit Margins
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Lower fees compared to traditional payment processors.
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Instant settlements (no 3-5 day waiting periods).
3. Earn 4% APY on PYUSD Balances
Merchants who hold funds in PYUSD can earn 4% interest, making it a smart alternative to traditional banking26.
4. Future-Proof Your Business
With Trump’s GENIUS Act regulating stablecoins and growing crypto adoption, businesses that integrate crypto payments now will have a competitive edge17.
How to Get Started with PayPal’s Crypto Payments
Step 1: Opt into the Beta (U.S. Merchants Only)
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Currently available for U.S. businesses (excluding New York due to NYDFS regulations)7.
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Global expansion expected soon4.
Step 2: Connect Your Crypto Wallet
Link Coinbase, MetaMask, or other supported wallets to your PayPal account.
Step 3: Start Accepting Crypto Payments
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Customers pay in crypto → PayPal converts to PYUSD or fiat → Funds deposited instantly.
How does PayPal’s New Feature Work?
The “Pay with Crypto” feature allows customers to use their cryptocurrency holdings to make purchases directly through their PayPal accounts. Here’s a simplified breakdown of the process:
- Customer Initiates Payment: When checking out, customers can choose to pay with cryptocurrency.
- Conversion to Fiat: PayPal automatically converts the selected cryptocurrency to fiat currency at the current exchange rate, ensuring the merchant receives the correct amount.
- Instant Settlement: The transaction is settled quickly, with funds deposited into the merchant’s account without delay.
This seamless process benefits customers by allowing them to effortlessly use their crypto assets and ensures that merchants receive payments in their preferred currency, freeing them from the hassle of managing crypto volatility.
BitPay and Coinbase Commerce: Alternatives Worth Considering
Although PayPal’s new feature is exciting, it’s important to note that platforms like BitPay and Coinbase Commerce have been at the forefront of cryptocurrency payments for years. These services offer robust solutions for businesses looking to accept cryptocurrency payments.
BitPay: A Leader in Blockchain Payments
BitPay is renowned for its comprehensive crypto payment processing services. With BitPay, businesses can accept a wide range of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin, and receive settlements in fiat currency. The BitPay wallet gives users full control over their private keys, ensuring security and autonomy.
Coinbase Commerce: Seamless Crypto Integration
Coinbase Commerce provides businesses with an easy-to-use platform to start accepting crypto payments. With features like volatility-free conversions and instant settlements, Coinbase Commerce is an attractive option for merchants looking to streamline their payment processes. Its integration with popular e-commerce platforms like WooCommerce makes Coinbase Commerce accessible to businesses of all sizes.
Challenges and Risks of Crypto Payments
While PayPal’s crypto payments offer huge benefits, there are still risks:
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Regulatory uncertainty (NYDFS approval pending).
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No FDIC/SIPC insurance on crypto holdings6.
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Irreversible transactions (refunds must be processed manually).
“Crypto promised instant global transfers, but challenges like volatility and wallet complexity remain. Pay with Crypto helps solve these issues.”
— PayPal CEO Alex Chriss.
The Bigger Picture: Crypto’s Rise in Mainstream Commerce
PayPal isn’t alone—Stripe, Coinbase, and Shopify are also pushing crypto payments. Key trends:
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Stripe’s USDC adoption in 70+ countries.
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Coinbase Commerce enabling crypto payments since 2018.
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Trump’s GENIUS Act boosting stablecoin legitimacy.
Is this the tipping point for crypto in e-commerce?
FAQs
Which cryptocurrencies can businesses accept?
PayPal supports 100+ cryptocurrencies, including Bitcoin, Ethereum, Solana, USDT, USDC, and even meme coins.
How are crypto payments converted to cash?
PayPal instantly converts crypto to PYUSD or fiat, protecting merchants from volatility.
What are the fees for crypto payments?
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0.99% promotional fee (until July 2026).
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1.5% afterward—still cheaper than credit cards.
Can businesses outside the U.S. use this feature?
Currently U.S.-only, but PayPal plans global expansion soon.
Is PYUSD safe?
PYUSD is backed 1:1 by USD reserves, but it’s not FDIC-insured.
How do refunds work with crypto payments?
Since crypto transactions are irreversible, refunds must be processed manually in fiat or stablecoins
Can a PayPal account receive Ethereum crypto?
Yes, PayPal accounts can receive Ethereum (ETH) along with other supported cryptocurrencies. You can generate a unique crypto address within your PayPal account to receive funds from external wallets.
Does PayPal business allow crypto?
Absolutely! PayPal’s new feature extends to business accounts, allowing merchants to accept payments in over 100 cryptocurrencies.
What cryptocurrency does PayPal accept?
PayPal supports a variety of cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH), among others.
Can my business accept bitcoin as payment?
Yes, with PayPal’s new service, your business can easily accept Bitcoin and other cryptocurrencies as payment options.
Can I connect crypto to PayPal?
You can link your external cryptocurrency wallets to your PayPal account to send and receive crypto funds.
Who accepts Ethereum as payment?
Many businesses, including those using platforms like BitPay and Coinbase Commerce, accept Ethereum as a form of payment.
Why can’t I send ETH on PayPal?
Ensure that you have completed the necessary account verifications to enable external transfers. Additionally, verify that you are sending Ethereum to an Ethereum address to avoid any loss of funds.
Can I sell my Ethereum on PayPal?
Yes, you can sell your Ethereum holdings on PayPal and use the proceeds to make purchases or transfer the funds to your bank account.
Can I transfer my ETH to PayPal?
You can transfer Ethereum from an external wallet to your PayPal account by using the unique crypto address generated within PayPal.
How can I buy ETH with PayPal?
You can purchase Ethereum directly through your PayPal account using supported payment methods like credit cards or bank transfers.
Can I buy USDT with PayPal?
While PayPal primarily supports major cryptocurrencies like Bitcoin and Ethereum, you may explore other platforms like BitPay or Coinbase for purchasing stablecoins like USDT.
How do I enable cryptocurrency on PayPal?
First, ensure that you have completed the required account verifications. Once verified, you can access the Crypto Hub within your account to buy, sell, send, and receive cryptocurrencies.
Is PayPal expanding its cryptocurrency services to business accounts?
Yes, PayPal is expanding its cryptocurrency services to business accounts, enabling merchants to accept payments in over 100 cryptocurrencies.
Conclusion
PayPal’s decision to allow businesses to accept Bitcoin, Ethereum, and other cryptocurrencies marks a significant milestone in the realm of digital payments. As more businesses recognize the advantages of accepting cryptocurrency payments, platforms like BitPay and Coinbase Commerce will continue to play pivotal roles in this evolving ecosystem. Now is the time for small business owners and seasoned entrepreneurs alike to explore the potential of cryptocurrency and position their businesses at the forefront of this financial revolution.
Ready to take the plunge? Start by exploring how platforms like BitPay and Coinbase Commerce can help you seamlessly integrate cryptocurrency payments into your operations. Remember, with PayPal’s new feature, accepting cryptocurrency is easier than ever. Embrace the future of commerce today!