PayPal has launched a new feature allowing U.S. businesses to accept payments in over 100 cryptocurrencies. The update includes major assets like Bitcoin and Ethereum, alongside novelty tokens such as Trump’s memecoin and Fartcoin.
PayPal’s New Crypto Checkout Offers Cheaper Fees
According to a Fortune report, any U.S. merchant using PayPal’s payment processing system can activate the crypto option starting immediately. Merchants will pay a promotional transaction fee of 0.99% in the first year.
After the first year, the rate will then increase to 1.5%, which is lower than the average credit card fee of 1.57% charged in 2024. This renders crypto a competitive payment mode for small businesses. Customers can link their existing cryptocurrency wallets to the checkout to facilitate their cryptocurrency payments.
To process payments, buyers can connect their existing crypto wallets to the checkout. PayPal will then convert the crypto via exchanges like Coinbase or Uniswap. The funds are first converted into PayPal’s stablecoin, PYUSD, and then into U.S. dollars for merchants. Before now, PayPal and Coinbase announced a partnership to offer zero-fee PYUSD conversions.
This latest move is part of PayPal’s larger digital asset strategy. After reducing its crypto activity during the 2022 market slump, the company is ramping up again following the passing of the GENIUS Act. The crypto industry continues to grow, thanks in part to Donald Trump’s administration’s strong support for blockchain development.
How The Payment Service Will Work
PayPal CEO Alex Chriss cited an example, saying the new feature allows a merchant in Oklahoma to easily receive crypto payments from a shopper in Guatemala. According to him, this highlights how the new system enables international transactions using blockchain infrastructure.
The payment giant first introduced basic crypto features in 2020 and later expanded them to Venmo. In 2023, the company launched PYUSD, which has grown 70% in market cap this year to reach $850 million. The stablecoin had initially faced opposition from the SEC. However, the Commission dropped its investigation into PYUSD earlier this year.
The company also plans to introduce the crypto payment feature to large U.S. and global enterprises, although no timeline has been announced. The update positions PayPal as a key player in the growing crypto payments space.
Paul
Paul Adedoyin is a crypto journalist with 4+ years experience who provides timely news, in-depth research, and insightful content to inform and empower his audience. His works have been featured on sites such as CryptoMode, CryptoNewsFlash among others.
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Source: https://coingape.com/paypal-to-let-merchants-accept-payments-in-over-100-cryptocurrencies/