PayPal Introduces Crypto Payments: Commerce Now Accepts Digital Currencies for Transactions
PayPal Introduces "Pay with Crypto" for Global Commerce
PayPal has unveiled a new service called "Pay with Crypto," which aims to revolutionize the world of global commerce by making it easier and more cost-effective for businesses to accept cryptocurrency payments.
The service, set to be available to U.S. merchants in the coming weeks, offers a near-instant conversion of over 100 cryptocurrencies to stablecoins or fiat currency at checkout, significantly reducing cross-border transaction costs. This reduction comes from bypassing traditional banking and currency conversion intermediaries [1][3][4].
Merchants using "Pay with Crypto" can enjoy lower transaction fees, with rates as low as 0.99%, which can be up to 90% lower than traditional international credit card fees. This reduction in costs can substantially enhance the competitiveness of merchants in global commerce [1][3][4].
In addition, merchants can potentially earn 4% interest on funds held in PayPal’s regulated stablecoin PYUSD within PayPal’s wallet [1][3][4].
The service is part of PayPal World, a global partnership of five major digital wallets, recently launched by PayPal last week. By leveraging this large ecosystem, merchants can connect with over 650 million crypto users worldwide, thus expanding revenue opportunities [2][3].
PayPal has partnered with Fiserv to expand the use of stablecoins globally. This partnership aims to reimagine how money moves globally and increase practical use cases for crypto and stablecoins [2][4].
"Pay with Crypto" supports major cryptocurrencies like BTC, ETH, and USDT, as well as digital wallets such as Coinbase and MetaMask. The service enables seamless cross-border crypto payments, making it easier for merchants to accept cryptocurrencies and profit from increased sales [1][2][3][4].
Alex Chriss, President and CEO of PayPal, stated, "We are excited to bring this innovative service to merchants, expanding consumer choice, and reducing costs."
By mainstreaming crypto payments, PayPal's move encourages interoperability among various crypto wallets and fiat systems, fostering further adoption, liquidity, and integration of stablecoins within established financial infrastructure [2][4].
In summary, PayPal’s Pay with Crypto service lowers cross-border payment costs, accelerates processing times, expands merchant access to crypto users, and promotes stablecoin use, thereby impacting both business costs and the broader global crypto payment ecosystem positively[1][2][3][4].
- With PayPal's "Pay with Crypto" service, businesses can now accept various cryptocurrencies, such as BTC, ETH, and USDT, at lower transaction fees, often up to 90% less than traditional international credit card fees, thereby reducing business costs and enhancing their competitiveness in global commerce.
- By leveraging the PayPal World global partnership and supporting major digital wallets like Coinbase and MetaMask, "Pay with Crypto" enables merchants to connect with over 650 million crypto users worldwide, potentially increasing their revenue opportunities while promoting stablecoin use and improving the broader global crypto payment ecosystem.
