PayPal Launches ’Pay with Crypto’ for 650M Users

Published: 2025-09-03 15:44:15 |

PayPal has launched "Pay with Crypto" for 650 million users, enabling wallet-agnostic payments in over 100 cryptocurrencies. With Pay with Crypto, customers can connect non-custodial wallets such as MetaMask, Coinbase Wallet or Phantom at checkout. PayPal Pay with Crypto converts digital assets instantly into US dollars or PYUSD stablecoin, shielding merchants from price volatility. The feature offers a promotional fee of 0.99% through mid-2026 and near-instant settlement, helping merchants save on card processing and improve cash flow. Merchants that hold PYUSD can earn around 4% APY. Pay with Crypto also broadens global market access for SMEs via low-fee cross-border payments. PayPal’s roadmap includes the PayPal World alliance and a Fiserv partnership to enable cross-border crypto payments for 2 billion users and boost stablecoin interoperability. Risks include pending NYDFS approval for PYUSD, lack of FDIC/SIPC insurance, and a fee increase to 1.5% after mid-2026.

Bullish

PayPal’s "Pay with Crypto" integration is likely to have a bullish impact on cryptocurrency markets. Historically, when major payment platforms adopt crypto settlement—such as Visa’s rollout of crypto-linked cards—crypto asset demand receives support from increased utility and mainstream adoption. In the short term, the announcement could trigger positive sentiment among traders, boosting on-chain activity and altcoin trading volumes as users experiment with payments. Retailer adoption by PayPal’s 28 million merchants may drive small but steady buy pressure for major coins like BTC and ETH. Long-term, embedding crypto into PayPal’s global payments network could accelerate institutional and SME participation in digital assets. Lower transaction costs and stablecoin payouts may encourage businesses to hold and transact in crypto, increasing overall market liquidity and reducing volatility. The upcoming PayPal World alliance and stablecoin interoperability with Fiserv promise further expansion. However, fee increases post-2026 and regulatory hurdles may moderate growth. Overall, increased on-ramps and real-world use cases align with bullish fundamentals for major cryptocurrencies.