PayPal announced it will enable U.S. merchants to accept payments in more than 100 cryptocurrencies, including blue-chip tokens like Bitcoin and Ethereum. The new functionality, branded as “Pay with Crypto,” will begin rolling out to PayPal’s vast network of merchant partners within the coming weeks, marking a significant milestone in the mainstream adoption of digital assets.

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The “Pay with Crypto” service, announced on July 28, 2025, instantly connects businesses to a global market estimated at over $3 trillion. In practical terms, shoppers can now use their preferred crypto wallets including Coinbase, MetaMask, OKX, Kraken, and others to pay at any participating online store, while merchants effortlessly receive funds converted instantly into U.S. dollars or PayPal’s own stablecoin, PYUSD.

Slashing Traditional Payment Barriers

For years, global merchants have grappled with high fees and slow settlement times associated with credit card and traditional international transactions. PayPal’s new crypto payment feature slashes these barriers; now merchants will enjoy a promo transaction rate as low as 0.99% which is substantially lower than the typical credit card fees ranging from 1.5% to 3.5%. After July 31, 2026, the fee will rise to 1.5%, still competitive compared to industry averages.

Opening Doors for Merchants and Consumers

The move is seen as a major step forward for small and medium-sized businesses as well as larger enterprises. With integration options for a wide spectrum of crypto wallets, merchants gain access to more than 650 million global crypto users. PayPal’s platform is designed for simplicity and security. Merchants do not need to manage crypto wallets or hedge against market swings, everything is processed behind the scenes, with robust encryption and fraud protection baked into PayPal’s ecosystem.

Industry Ripple Effects

PayPal’s announcement comes amid a broader fintech race to streamline global digital payments. Competitors like Stripe and Coinbase have been advancing their own crypto solutions, but PayPal’s sheer merchant footprint and robust infrastructure make this move particularly consequential. The launch follows recent regulatory clarity around stablecoins in the U.S., and is expected to inspire further innovation and adoption among both consumers and businesses. It also marks a strategic escalation in PayPal’s digital asset initiatives. After launching the PayPal USD (PYUSD) stablecoin in 2023 and enabling personal crypto trading years prior, the fintech giant is now delivering functionality for everyday commerc.

What’s Next?

While the rollout is currently limited to U.S. merchants with New York residents excluded for now, PayPal intends to expand the service internationally. The company has not yet disclosed a specific global timeline. In the meantime, merchants should prepare to capitalize on the emerging ecosystem, and consumers will have unprecedented freedom to spend digital assets across countless online stores.