PayPal Launches P2P Crypto Transfers for BTC, ETH and PYUSD
PayPal has launched P2P crypto transfers for U.S. users, enabling Bitcoin (BTC), Ethereum (ETH) and PayPal USD (PYUSD) transactions within PayPal, Venmo and to compatible wallets. This PayPal P2P crypto transfers feature builds on July 2025’s “Pay with Crypto” merchant service, which supports 100+ cryptocurrencies with instant conversion and lower fees. The update also adds PayPal Links, allowing users to generate one-time payment or request links via text, chat or email. PayPal’s P2P volume rose 10% year-on-year in Q2 2025, reflecting strong demand ahead of the PayPal World global payments rollout scheduled for late 2025. As with other friends-and-family payments, P2P crypto transfers remain exempt from IRS 1099-K reporting, preserving user privacy and tax benefits.
Bullish
By integrating native P2P crypto transfers into its PayPal and Venmo wallets, PayPal significantly lowers friction and broadens access to Bitcoin, Ethereum and its stablecoin. This convenience is expected to boost transaction volumes and provide near-term price support for these assets. Over the long term, the feature’s alignment with the PayPal World global payments initiative and the 10% year-on-year P2P volume growth in Q2 2025 indicate sustained adoption, stronger liquidity and positive network effects, making this development bullish for BTC, ETH and PYUSD.