PayPal has launched a new feature enabling merchants within the United States to accept payments directly in select cryptocurrencies, including XRP and Solana. This ‘Pay with Crypto’ service converts these digital asset payments instantly into PayPal’s native stablecoin, PYUSD, and subsequently into U.S. dollars for merchant settlement. The process aims to mitigate volatility risks for businesses while facilitating crypto transactions.
The feature is designed to enhance global payment efficiency, particularly for cross-border transactions, by significantly reducing traditional processing times and costs. Merchants adopting this service benefit from low transaction fees, capped at 0.99% for the first year of availability.
PYUSD serves as a stable intermediary during the payment process, ensuring the final merchant settlement is received in U.S. dollars without exposure to cryptocurrency price fluctuations. This facilitates faster settlement speeds compared to traditional methods.
The nationwide rollout of ‘Pay with Crypto’ faces a limitation due to regulatory hurdles encountered in the state of New York, where the feature is not immediately available.
PayPal supports this new checkout option for users holding cryptocurrency in several popular self-custody wallets, including Coinbase Wallet, MetaMask, Binance Wallet, Phantom, and Exodus, facilitating a broader range of payment options for customers.