29.07.2025 13:29
PayPal has unveiled a groundbreaking new payment option for US merchants, enabling them to accept over 100 cryptocurrencies, including Bitcoin, directly through their existing PayPal accounts. This initiative represents a significant expansion of PayPal's services, empowering small businesses with a streamlined and cost-effective method for processing digital currency payments.
The innovative system will initially charge merchants a promotional fee of 0.99 percent per transaction for the first year, a rate significantly lower than the projected 1.57 percent average credit card processing fee for 2024, as reported by Nilson Report. Following the initial promotional period, the fee will increase to 1.5 percent, still remaining competitive within the market. This move directly addresses the concerns of business owners burdened by high transaction fees, particularly those involved in international commerce.
According to PayPal President and CEO, Alex Chriss, this initiative aims to alleviate the financial pressures faced by businesses, both domestically and internationally, by simplifying payment processing and reducing costs. He emphasized the company's commitment to facilitating business growth by removing significant barriers associated with global transactions. This approach is highlighted by PayPal's claim of potential cost reductions up to 90%, showcasing the financial benefits available to businesses adopting this new payment method.
Customers will seamlessly integrate their existing cryptocurrency wallets at checkout, with PayPal converting the received cryptocurrencies into its stablecoin, PYUSD, via established exchanges like Coinbase or Uniswap. This PYUSD is then converted to US dollars and transferred to the merchant, providing a secure and reliable process. This development builds upon PayPal's recent launch of PayPal World, a global partnership connecting five major digital wallets to revolutionize international money transfers. This further underscores PayPal's commitment to simplifying and streamlining cross-border transactions.
This latest expansion into the Bitcoin and broader cryptocurrency market signifies PayPal's continued investment in digital assets. Following the introduction of Bitcoin buying and selling capabilities in 2020, and the subsequent integration of crypto features into Venmo, this move solidifies PayPal's position in the evolving landscape of digital finance, despite a period of market contraction in 2022. The company clearly demonstrates a renewed commitment to providing comprehensive digital payment solutions.
