- Over 100 cryptocurrencies are supported, including Bitcoin, Ethereum, USDT, USDC, XRP, BNB, and Solana
- A lot of wallets are also supported, such as Coinbase, MetaMask, Binance, OKX, Kraken, Phantom, and Exodus, with more to come
- Transaction fees are capped at 0.99%, potentially by up to 90% lower than traditional international credit card fees
PayPal has officially launched ‘Pay with Crypto’, a new service for US merchants that enables them to accept crypto payments at checkout.
Over 100 cryptocurrencies are supported, including Bitcoin, Ethereum, USDT, USDC, XRP, BNB, and Solana. The broad support extends to wallets too, such as Coinbase, MetaMask, Binance, OKX, Kraken, Phantom, and Exodus, with more to come.
How “Pay with Crypto” works for merchants
Merchants receive payment in fiat or PayPal USD (PYUSD) stablecoin (which are immediately converted upon purchase from crypto) so they don’t hold crypto volatility risk. Transaction fees are capped at 0.99%, potentially by up to 90% lower than traditional international credit card fees.
The service is rolling out within the coming weeks to US-based merchants who use PayPal’s checkout platform.
Alex Chriss, President and CEO of PayPal, had this to say on the matter: “Businesses of all sizes face incredible pressure when growing globally, from increased costs for accepting international payments to complex integrations. Today, we’re removing these barriers and helping every business of every size achieve their goals.”
Several days ago, the company also announced the launch of PayPal World. The goal is to unite major global wallets and payment rails onto one interoperable platform, starting with PayPal and Venmo as the first use case.
Real-world crypto usage
PayPal’s ‘Pay with Crypto’ service has the potential to transform crypto from an investment asset into a spendable medium for even casual users. Consumers can use their cryptocurrencies directly at checkouts, making crypto more practical for everyday transactions.
Additionally, by converting crypto at checkout and avoiding traditional banking rails, merchants can vastly reduce fees and streamline cross-border transactions. This will also likely integrate very well with PayPal World.
The new service could very well bring in more customers for the company, since by connecting PayPal directly to wallets like MetaMask, Coinbase, and OKX, users gain flexibility and PayPal gains access to a large existing user base (approximately 650 million crypto holders worldwide).
Then, stablecoins as a whole may see some favorable outcomes from the rollout. Merchants opting for PYUSD settlement can gain the advantage of a fully-backed stablecoin that yields a 4% interest when held, which can contribute to the wider growth of the stablecoin market.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
