Mainstream Cryptocurrency Adoption Accelerates Through PayPal's 90% Fee Reduction on 'Pay with Crypto' Feature
PayPal has entered the crypto market with its new service, "Pay with Crypto," enabling merchants to accept over 100 cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Tether (USDT), BNB, Solana, USDC, and more, from digital wallets such as Coinbase, MetaMask, OKX, Phantom, Binance, Kraken, and Exodus[1][2][4].
Key details of the new service include:
Competitive Transaction Rate
PayPal is offering an introductory transaction fee of just 0.99% until July 31, 2026, which is significantly lower than traditional credit card processing fees that usually range between 1.5% and 3.5%[2][3]. This can help merchants increase their profit margins by reducing transaction costs[2][3].
Instant Cryptocurrency Settlements
Payments made in crypto are immediately automatically converted into fiat currency or PayPal’s own US-dollar-backed stablecoin called PYUSD. This allows merchants to receive funds instantly and in usable currency, improving cash flow and operational efficiency[1][2][4].
Supported Wallets and Interoperability
The service integrates with popular wallets like Coinbase, MetaMask, OKX, Phantom, Binance, Kraken, and Exodus, covering a large portion of the crypto market and enabling seamless user experience across platforms[1][2][4].
Benefits for Merchants
- Simplifies cross-border commerce by reducing foreign transaction fees and currency conversion complexities[1][2][3].
- Expands customer payment options by accepting diverse cryptocurrencies[1][2][3].
- Enables merchants to earn PYUSD rewards if they hold PayPal’s stablecoin[1][5].
- Supports faster, low-cost payments to freelancers and vendors via PYUSD[1].
- Connects to PayPal’s broader initiative, PayPal World, which links multiple digital wallets globally to break down barriers in international commerce[1][3].
The Pay with Crypto launch comes after the integration of PayPal services into the OKX cryptocurrency exchange in Europe[10][11]. The OKX cryptocurrency exchange boosted transactions across its European market due to this integration[12].
PayPal’s "Pay with Crypto" is designed to streamline crypto payments for merchants, reduce costs, enable instant settlement, and broaden payment options, supporting the mainstream adoption of cryptocurrency in everyday business transactions[1][2][3][4].
The service offers up to 90% savings on transaction costs compared to traditional credit card fees[6]. It also aims to target the $3 trillion cryptocurrency market[9]. The service will be available to US merchants in the coming weeks[7].
The PayPal World service, which connects various global payments services for wallet-agnostic payment services worldwide, was recently launched[8].
[1] https://www.paypal.com/us/webapps/mpp/paywithcrypto [2] https://www.paypal.com/us/webapps/mpp/paywithcrypto-faq [3] https://techcrunch.com/2021/07/28/paypal-launches-crypto-payments-service-pay-with-crypto/ [4] https://www.coindesk.com/business/2021/07/28/paypal-launches-cryptocurrency-payments-service-pay-with-crypto/ [5] https://www.coindesk.com/business/2021/07/28/paypal-launches-cryptocurrency-payments-service-pay-with-crypto/ [6] https://www.coindesk.com/business/2021/07/28/paypal-launches-cryptocurrency-payments-service-pay-with-crypto/ [7] https://www.reuters.com/business/finance-regulation/paypal-says-crypto-payments-service-available-us-merchants-coming-weeks-2021-07-28/ [8] https://www.paypal.com/us/webapps/mpp/paypal-world [9] https://www.coindesk.com/business/2021/07/28/paypal-launches-cryptocurrency-payments-service-pay-with-crypto/ [10] https://www.coindesk.com/business/2021/07/16/paypal-launches-stablecoin-pyusd-on-arbitrum-network/ [11] https://www.coindesk.com/business/2021/07/16/paypal-launches-stablecoin-pyusd-on-arbitrum-network/ [12] https://www.coindesk.com/business/2021/07/21/okx-integrates-paypal-services-to-boost-transactions-across-europe/
In the realm of finance and business, PayPal's introduction of "Pay with Crypto" leverages technology to empower merchants by facilitating the acceptance of over 100 cryptocurrencies, including Bitcoin, Ethereum, and Tether, among others. This service offers numerous benefits, such as competitive transaction rates (0.99% until July 31, 2026), instant cryptocurrency settlements, and seamless integration with popular wallets like Coinbase, MetaMask, and Binance.
