PayPal has rolled out a new crypto payments service for small U.S.-based businesses with near-instant settlements. According to the announcement, the crypto payment service will enable businesses to accept over 100 cryptocurrencies with near-instant settlement. The feature, announced today, July 28, aims to reduce international transaction costs by up to 90% while expanding merchant access to the global digital asset economy.Crypto Checkout Now Available in the U.S. for MerchantsThe service, called Pay with Crypto, will be available to U.S. merchants using PayPal's online payments infrastructure in the coming weeks. By opting in, businesses can receive customer payments in popular cryptocurrencies, including Bitcoin, Ethereum, USDT, XRP, and Solana, as well as novelty tokens like the Trump memecoin and Fartcoin.https://twitter.com/PayPal/status/1949820518615453939Customers can complete transactions using widely used wallets such as Coinbase Wallet, MetaMask, OKX, Kraken, and Phantom. This move allows merchants to tap into an international customer base of over 650 million crypto users, according to Crypto.com's 2025 market sizing report.Transaction Flow and Instant ConversionTo complete a transaction, the customer's crypto is first sold through either a centralized exchange like Coinbase or a decentralized exchange like Uniswap. The resulting value is converted into PayPal's stablecoin, PYUSD, and finally, U.S. dollars.This settlement process occurs within seconds, providing merchants quick access to funds while avoiding traditional banking delays. The transaction is recorded on-chain, ensuring transparency and security.Lower Fees Compared to Credit CardsAs a perk for users, PayPal offers a promotional transaction fee of 0.99% through July 31, 2026. After that, the rate will rise, though it is still expected to remain competitive. By comparison, the average international credit card transaction, including foreign exchange fees, costs U.S. businesses approximately 1.57%, based on the 2024 Nilson Report.Internal analysis from PayPal suggests that Pay with Crypto could reduce international transaction fees by up to 90%, a significant advantage for businesses operating across borders.CEO Emphasizes Global Reach and Merchant GrowthPayPal CEO Alex Chriss emphasized that businesses, regardless of size, often struggle with the challenges of global expansion, particularly due to high international transaction costs and complicated integration processes. He explained that PayPal's open platform aims to remove these barriers by enabling merchants to accept cryptocurrency payments, improve profit margins, reduce transaction fees, and access their funds more quickly.Chris also highlighted the platform's potential to expand global access to digital commerce. He illustrated this by pointing to a scenario where a shopper in Guatemala could seamlessly purchase a gift from a merchant based in Oklahoma City. He noted that this reflects PayPal's goal of enabling inclusive and borderless transactions worldwide.Pay With Crypto Joins List of PayPal's Crypto ServicesNotably, the PYUSD is PayPal's U.S. dollar-backed stablecoin launched in 2023 and issued by Paxos Trust Company. It is backed by U.S. Treasury assets and dollar reserves and is designed to maintain a 1:1 peg with the dollar.Merchants who retain their PYUSD on PayPal can earn up to 4% annual rewards, adding an incentive for holding rather than immediately converting to fiat.PayPal also announced a new partnership with Fiserv to expand the utility of stablecoins further globally, aiming to drive efficiency in cross-border settlements and B2B payments.Meanwhile, the introduction of Pay with Crypto follows the launch of PayPal World , an initiative to streamline cross-border payments. Last week, PayPal launched PayPal World, which integrates with major local systems like India's UPI, China's Weixin Pay, and Latin America's Mercado Pago. The initiative aims to simplify international transactions for over 2 billion users by connecting these wallets through PayPal and Venmo, with broader interoperability expected over time.
