PayPal Unveils Crypto Checkout for US Merchants, Slashing Cross-Border Fees

PayPal now allows US merchants to accept payments in over 100 cryptocurrencies, with automatic conversion to PYUSD or USD.
The new feature boasts transaction fees as low as 0.99%, aiming to provide a cost-effective and faster alternative to traditional cross-border payments for small and mid-sized businesses, though it’s currently unavailable in New York.

PayPal will allow US-based merchants to accept payments in more than 100 cryptocurrencies, part of a broader push to expand stablecoin adoption and streamline cross-border transactions.

The feature supports crypto payments in Bitcoin, Ethereum, Solana, USDC, XRP, and others, and comes with wallet integrations for MetaMask, Coinbase Wallet, Phantom, Kraken, Binance, OKX, and Exodus.

For now, the crypto payment feature is limited to merchants in the US, excluding those in New York.

How it Works

The premise is pretty simple: at checkout, customer payments will be converted automatically into PYUSD, PayPal’s native stablecoin, or just US dollars, hence shielding merchants from any potential price swing.

Moreover, PayPal is positioning the 0.99 % transaction fee as a discount alternative to credit card processing, which typically starts around 1.75 % with providers like Visa.

The company says the new tool is aimed at helping small and mid-sized businesses bypass traditional cross-border payment rails, often marked by delays and high costs.

Imagine a shopper in Guatemala buying a special gift from a merchant in Oklahoma City. Using PayPal’s open platform, the business can accept crypto for payments, increase their profit margins, pay lower transaction fees, get near instant access to proceeds, and grow funds stored as PYUSD at 4% when held on PayPal.

Alex Chriss, President and CEO, PayPal.

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The rollout comes as PayPal’s stablecoin, PYUSD, sees renewed traction. Since January, PYUSD’s market cap has grown from US$497M (AU$792M) to US$894M (AU$1.3B), according to data from CoinGecko.

Similarly, Stripe, another payment giant, recently reintroduced crypto payments. As Crypto News Australia reported, the company is now allowing crypto transactions with USDC on Solana, Ethereum, and Polygon.

Earlier this month, PayPal teamed up with Coinbase to allow Aussies to buy and move crypto in Australia using linked bank accounts.

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