PayPal has announced a major leap into cryptocurrency adoption, unveiling a new feature that allows U.S.-based merchants to accept payments in over 100 digital currencies, including Bitcoin (BTC), Ether (ETH), Solana (SOL), and PayPal’s own stablecoin, PYUSD.
Revealed Monday, the new payment option enables businesses to receive crypto payments seamlessly via integration with popular wallets such as MetaMask, Coinbase Wallet, Phantom, Binance, Kraken, OKX, and Exodus. To shield merchants from crypto volatility, payments are instantly converted to PYUSD or U.S. dollars at checkout.
The feature comes with a competitive 0.99% transaction fee—nearly 90% lower than traditional credit card fees, which typically start at 1.75%, according to Visa. PayPal says the initiative is aimed at easing the burden of international transactions, particularly for small and medium-sized businesses navigating high cross-border fees.
Currently, the feature is restricted to merchants in the United States, excluding those based in New York due to regulatory constraints.
The rollout coincides with a sharp increase in PYUSD’s market cap, which has grown nearly 80% since January—from $497 million to $894 million, per CoinGecko data. This move not only expands the coin’s utility but also strengthens PayPal’s foothold in the stablecoin arena amid rising competition from fintech rivals like Stripe.
Stripe, for its part, introduced USDC payments in October 2024, reaching users in 70 countries on day one. By June, Stripe had teamed up with Coinbase, adding fiat-to-crypto on-ramps and supporting Coinbase’s Base network and Wallet integration.
Meanwhile, Coinbase has led merchant crypto solutions since launching Coinbase Commerce in 2018. Its x402 protocol, released in 2024, powers stablecoin payments via standard HTTP—enabling APIs and AI agents to interact directly with crypto.
As PayPal joins the race to redefine global payments through digital assets, the pressure mounts for traditional fintechs and centralized exchanges alike to innovate faster and expand access to crypto-friendly tools.
