PayPal Adds Crypto Transfers and Payment Links to Supercharge Peer-to-Peer Payments

PayPal has unveiled PayPal Links, a new peer-to-peer (P2P) feature that combines personalised payment links with crypto transfers, aiming to simplify global money movement and broaden its digital payments ecosystem. The programme enables US users to generate unique, one-time links to request or send money through messaging platforms such as text, direct messages, or email.

The new system removes the need for recipients to enter payment amounts manually, as the sender can now define the value within the link itself. Each link is private, limited to a single transaction, and will automatically expire after ten days if not claimed, with reminders and cancellation options available in-app.

What sets this launch apart is the imminent integration of cryptocurrency transfers directly into the P2P flow of the PayPal app. Soon, US users will be able to send Bitcoin, Ethereum, PayPal’s PYUSD stablecoin, and other tokens not only between PayPal and Venmo accounts, but also to external wallets that accept crypto and stablecoins. PayPal confirmed that when these transfers occur between friends and family, they will not trigger 1099-K reporting, keeping personal payments exempt from tax documentation requirements.

Diego Scotti, General Manager of PayPal’s Consumer Group, emphasised the company’s broader mission by stating that after 25 years of changing how people exchange money, PayPal is now taking the next step in payments.

Now your money follows your conversations. Combined with PayPal World, it’s an unbeatable value proposition, showing up where people connect, making it effortless to pay your friends and family, no matter where they are or what app they’re using.

Diego Scotti, PayPal’s Consumer Group

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Scaling the Global Payments Network

PayPal World, launched in July, is a global platform linking PayPal and Venmo with major digital wallets and payment systems, extending reach to nearly two billion users and simplifying cross-border payments.

The introduction of PayPal Links in the US marks the first step in a broader rollout, with expansion to the United Kingdom, Italy, and other markets planned later this month. Recent results highlight the importance of peer-to-peer services in this strategy, with consumer payment volumes rising 10% year-on-year in the second quarter and Venmo recording its strongest growth in three years.

PayPal’s commitment to digital assets remains central, having first enabled crypto trading in 2020 before launching its dollar-backed PYUSD stablecoin, which is fully reserved by US dollar deposits and Treasuries. Today, PYUSD is among the leading stablecoins, with a market capitalisation of around US$1.3 billion (AU$1.95 billion).

Related: U.S. Treasury Seeks Input on Digital ID Tools to Tackle Illicit Crypto Finance