PayPal Launches Crypto Checkout for US Merchants
PayPal is introducing a feature that allows U.S.-based merchants to accept payments in over 100 cryptocurrencies, aiming to support international transactions and increase the utility of its stablecoin, PYUSD.
Businesses can now receive payments in digital assets such as Bitcoin, Ethereum, Solana, USDT, USDC, and XRP. The service connects with wallets like Coinbase Wallet, MetaMask, OKX, Kraken, Binance, Phantom, and Exodus.
Cryptocurrency payments will be instantly converted into either PYUSD or fiat currency at checkout, protecting merchants from price fluctuations. PayPal will apply a 0.99% fee for crypto transactions, a rate it claims is significantly lower than average credit card processing fees, which typically start at 1.75% with providers like Visa.
The service is designed to address the high costs and complexities of cross-border payments for small and mid-sized businesses. However, it will only be available to merchants in the U.S., excluding those in New York.
PYUSD’s market capitalization has grown by nearly 80% since the beginning of the year, rising from $497 million to $894 million, based on CoinGecko data.
The update comes amid a broader push by firms like Stripe, which launched stablecoin payment functionality in October 2024. Stripe’s feature was used in 70 countries on its launch day, and the company has since expanded its fiat-to-crypto integrations with Coinbase, including support for the Base network and a fiat on-ramp via Coinbase Wallet.
While companies such as PayPal and Stripe are expanding their crypto offerings, Coinbase has long provided crypto tools for merchants. Its Coinbase Commerce product, launched in 2018, enables merchants to accept crypto on platforms like Shopify and WooCommerce.
In 2024, Coinbase introduced the x402 protocol, allowing crypto payments over standard HTTP. This system is tailored for APIs and AI agents, enabling them to transact using stablecoins like USDC on the Base network.
PayPal’s rollout follows the passage of the GENIUS Act, which has established a clear regulatory framework for companies to integrate stablecoins into their financial infrastructure.
Cryptocurrency payments are becoming more popular among small businesses in sectors such as retail, food service, e-commerce, travel, and real estate, drawn by the benefits of speed and reduced transaction costs.
Sources:
https://cointelegraph.com/news/paypal-crypto-checkout-tool-support-100-tokens