Global payment giant PayPal has taken a monumental step in crypto adoption by launching its "Pay with Crypto" service for U.S. merchants. This groundbreaking solution supports over 100 cryptocurrencies, including market leaders like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and major stablecoins, alongside popular memecoins. The service stands out by integrating with leading wallets including MetaMask, Binance Wallet, Coinbase Wallet, and Exodus, bridging the gap between self-custody solutions and mainstream commerce.
In a strategic move to drive adoption, PayPal is offering an attractive promotional transaction fee of just 0.99% for the first year, significantly undercutting traditional payment processors. This rate represents up to 90% savings compared to standard cross-border credit card fees, with the cost rising to 1.5% after the introductory period. The payment flow automatically converts crypto to PayPal's PYUSD stablecoin before settling in USD, ensuring merchants receive funds instantly while maintaining exposure to crypto's benefits.
The implications for businesses are substantial. Merchants can now tap into PayPal's network of 650 million users while avoiding the typical 2-4% fees charged by conventional payment systems. Additionally, businesses holding PYUSD balances can earn 4% annual yield, creating new revenue streams. For consumers, the service maintains crypto's decentralized ethos by supporting transactions directly from self-custody wallets, a first for major payment processors.
Looking ahead, PayPal has announced plans for global expansion, beginning with U.S. rollout in coming weeks and European markets targeted by year-end. The move intensifies competition with Stripe and BitPay, offering broader crypto support and lower fees. Industry analysts suggest this could pressure traditional financial institutions to accelerate their own crypto payment solutions, while potentially establishing PYUSD as the dominant stablecoin for e-commerce transactions.
As the program expands, observers will monitor how PayPal navigates regulatory requirements and whether competitors respond with improved offerings. With CEO Alex Chriss calling this "the future of inclusive, borderless commerce," PayPal's move may mark a turning point in everyday crypto utility. Merchants can now register for early access, while cryptocurrency users gain a powerful new way to spend their digital assets without compromising wallet sovereignty.
