Catenaa, Tuesday, July 29, 2025-PayPal has launched a new crypto payment service allowing small businesses to accept more than 100 cryptocurrencies, marking a major expansion of its push into digital assets and a deeper integration of its PYUSD stablecoin.
The new feature, branded “Pay with Crypto”, will convert customer payments made in cryptocurrencies into PayPal’s own US dollar-backed stablecoin, PYUSD, which is managed by Paxos.
The service will initially be available to US-based merchants and is compatible with leading crypto wallets including Coinbase, MetaMask, Binance, Kraken, and Phantom.
The company will charge a 0.99% transaction fee during the first year, rising to 1.5% thereafter, a rate it claims undercuts traditional international credit card processing costs.
Payments can be made using a wide array of tokens, including major assets like Bitcoin and Ethereum, and even memecoins such as TRUMP and FARTCOIN.
Depending on the asset, PayPal will sell the token via centralized exchanges like Coinbase or decentralized exchanges such as Uniswap, converting the proceeds into dollars for merchants.
Launched in 2023, PYUSD is now the 12th-largest stablecoin, with a market cap nearing \$900 million. The company said PYUSD is not insured by the FDIC or SIPC, a disclosure required for digital assets.
PayPal first entered the crypto market in 2020 and has since broadened its offerings, positioning itself as a key player in the digital payments space.
