PayPal Expands Crypto Checkout for U.S. Merchants

PayPal has launched a new cryptocurrency payment solution enabling U.S.-based merchants to accept over 100 digital currencies, including Bitcoin, Ether, Solana, and several stablecoins such as USDT, USDC, and its proprietary PYUSD. The tool is designed to broaden the use of crypto in daily commerce, especially for cross-border payments, without exposing merchants to the volatility typically associated with digital assets.

Shoppers can pay using popular crypto wallets like Coinbase Wallet, MetaMask, OKX, Kraken, Binance, Phantom, and Exodus. At the point of sale, the crypto is automatically converted into either fiat currency or PYUSD, depending on the merchant's preference. PayPal is charging a 0.99% transaction fee, which it says is "far lower than standard credit card fees," citing Visa's typical rate of at least 1.75% as a benchmark.

Although the service is available across the U.S., New York is currently excluded from participation. The move follows a surge in PYUSD's market capitalization this year, nearly doubling from $497 million to $894 million - a trend that reflects increasing interest in stablecoin-based transactions.

The initiative puts PayPal in more direct competition with players like Stripe and Coinbase. Stripe, for instance, introduced stablecoin payments last year and recently extended support to Coinbase's Base network. Meanwhile, Coinbase's suite of crypto commerce tools continues to evolve, now featuring the x402 protocol for automated crypto payments.

PayPal's timing appears aligned with recent regulatory developments. The passage of the GENIUS Act has provided a clearer framework for stablecoin use, reportedly encouraging companies like PayPal to accelerate their crypto strategies.

In a related move, PayPal and Coinbase recently announced a partnership eliminating trading fees on PYUSD transactions. Users can now trade or redeem the stablecoin on Coinbase at a 1:1 rate with no platform charges - a privilege previously reserved for Circle's USDC.

To further support adoption, PayPal deployed PYUSD on the Solana network in May and has launched several strategic collaborations, including a rewards system with Anchorage Digital and new payment integrations with MoonPay.