PayPal has rolled out a new feature allowing U.S. businesses to accept payments in over 100 digital assets including bitcoin, ethereum, and more. The service called “Pay with Crypto” makes cross-border payments easier, cheaper, and faster for merchants and consumers.
This is a big move for the company, bringing digital assets into everyday commerce. Merchants can now accept payments in digital assets using popular wallets like Coinbase Wallet, MetaMask, Kraken, Phantom and Exodus.
When customers pay with digital assets, PayPal converts them instantly to its U.S.-dollar-backed stablecoin, PYUSD, or directly to U.S. dollars, so merchants don’t have to deal with the price volatility of bitcoin and other digital assets.
“(Our platform) lets users link their wallet, pay with any token, convert it instantly to PYUSD, and deliver USD to merchants in seconds,” said Alex Chriss, President and CEO of PayPal, in a statement on X. “The result? Merchants pay less in fees and can instantly use funds.”
One of the biggest benefits of Pay with Crypto is the lower fees. The platform is offering a promotional 0.99% fee on digital asset transactions until July 31, 2026.
After that, the fee will be 1.5%, which is still lower than the average U.S. credit card processing fee, which can sometimes be as high as 3.75%.
The payment processing giant claims this new feature can reduce international transaction costs by up to 90% compared to traditional credit cards.
“Businesses of all sizes face incredible pressure when growing globally,” Chriss said. “[these range] from increased costs for accepting international payments to complex integrations. Today, we’re removing these barriers and helping every business of every size achieve their goals.”
PayPal says this new tool will open doors for small and medium-sized businesses to reach customers worldwide.
Because bitcoin payments can move across borders almost instantly, businesses can now sell to international customers without going through traditional banks or paying high cross-border fees.
Chriss highlighted the example of a shopper in Guatemala buying a gift from a merchant in Oklahoma City. Thanks to Pay with Crypto, the transaction can be completed instantly and the merchant will receive U.S. dollars and pay far less in fees.
“This is the future of inclusive, borderless commerce,” Chriss added. “And we’re proud to lead it.” Although many argue the online payments company is not leading the charge in digital asset payments, and finally started implementing it in fear of losing market share.
The launch comes at a time when stablecoin usage is growing and other financial technology companies are also entering the Bitcoin space. Competitors like Stripe and Coinbase are rolling out their own tools to simplify digital commerce.
PayPal’s own stablecoin, PYUSD, has grown significantly in 2025. Its market cap went from around $497 million in January to nearly $900 million by mid-year. Merchants who hold funds as PYUSD on the platform can earn up to 4% in rewards.
The launch is happening in a more favorable regulatory environment.
The GENIUS Act was recently signed into law, becoming the first major piece of digital asset legislation passed by the U.S. Congress. The law provides a framework for stablecoins like PYUSD, making it easier for companies like PayPal to expand their digital asset services.
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