What is “Pay with Crypto” by PayPal?
Pay with Crypto is PayPal’s blockchain-based settlement feature for US merchants. It allows payments in over 100 cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Solana (SOL), USDC (USDC), Tether’s USDt (USDT), XRP (XRP), BNB (BNB) and others.
Consumers can pay in crypto, while merchants receive either US dollars or PayPal USD (PYUSD), PayPal’s dollar-pegged stablecoin. The automatic crypto-to-fiat conversion on PayPal ensures no exposure to price volatility, thereby offering a familiar settlement process akin to a traditional payout.
This PayPal crypto settlement tool is also designed to be wallet-agnostic. Shoppers can use Coinbase Wallet, MetaMask, Binance, Kraken, Phantom, Exodus and others without requiring pre-transfer funds into PayPal.
Overall, the process is streamlined: connect an external wallet at checkout and pay directly.
The company has removed legacy barriers by embedding crypto payments directly into PayPal’s wallet. US merchants can now accept cross-border payments with instant settlement and stable-value payouts. This approach also helps expand PayPal’s global reach.
Overall, it’s a major step in PayPal enabling crypto for merchants at scale.
Did you know? PayPal’s inaugural corporate payment using PYUSD occurred on Sept. 23, 2024, to Ernst & Young via SAP’s digital platform.
Over 650 million crypto users to pay with crypto on PayPal?
PayPal crypto payments in 2025 are shaping up to be a powerful driver of mainstream crypto adoption.
With the launch of Pay with Crypto, PayPal is unlocking access to a $3-trillion crypto economy and a potential audience of 650 million crypto users (a massive leap from its existing 426 million account holders).
This way, PayPal is expanding its footprint from fiat-native users to crypto-native spenders by overlaying stablecoin-enabled transactions onto its existing infrastructure. This includes seamless support for PayPal stablecoin integration and deeper use of PayPal’s blockchain infrastructure to close the gap between digital assets and real-world commerce.
In effect, PayPal becomes an inclusive digital commerce provider — one that serves both traditional consumers and the growing population of Web3 wallet holders.
PayPal enables crypto for merchants (and why it matters)
Merchants benefit from Pay with Crypto: They save on fees, enjoy near-instant settlement, earn stablecoin yield and access global markets.
Lower transaction fees
The current promotional rate of 0.99% for PayPal crypto transactions (valid through mid-2026) is significantly lower than the typical 1.5%-3.5% card processing fees.
Even with a later increase to around 1.5%, it remains competitive, especially for cross-border sellers using crypto with PayPal.
Near-instant settlement
Funds are settled in fiat or PYUSD almost immediately — no need to wait one to three business days. This PayPal blockchain settlement feature removes volatility for sellers while improving cash flow.
Stablecoin rewards
Merchants who choose to hold proceeds in PYUSD stablecoin on PayPal can reportedly earn around 4% APY, turning balances into income-generating assets.
Global reach for SMEs
For small businesses, particularly those operating internationally, the combination of fast settlement and lower fees means easier access to global demand. PayPal’s crypto merchant tools are tailor-made for small and medium-sized enterprises (SMEs) priced out of traditional cross-border finance.
Did you know? As of mid-2025, PayPal supported over 15.4 million active business accounts globally, thus offering a broad opportunity for crypto acceptance via Pay with Crypto.
Cross-border crypto payments from PayPal; Consumer implications
From a buyer’s perspective, paying with crypto on PayPal is now as easy as using a card.
At checkout, users can select “Pay with Crypto” alongside their regular options. After connecting a wallet (MetaMask, Binance, Coinbase Wallet or Phantom), they can pay with crypto coins such as BTC, ETH or stablecoins.
The crypto-to-fiat conversion on PayPal happens instantly. The merchant receives a stable payout, while the buyer enjoys a frictionless, crypto-native payment experience without having to manually swap assets or deal with volatility.
This feature transforms digital assets into usable currency, enabling real-world utility beyond speculative trading. It’s especially impactful for users who prefer non-custodial wallets and want to pay directly with crypto, without touching centralized exchanges.
PayPal’s broader vision for crypto settlement
PayPal is laying the foundation for crypto-enabled infrastructure on a global scale.
Its upcoming PayPal World digital wallet alliance, set to launch in fall 2025, will connect wallets across major payment ecosystems: UPI in India, Tenpay Global in China, Mercado Pago in Latin America and Venmo in the US. The goal is to roll out seamless cross-border crypto payments via PayPal for nearly 2 billion users.
To support this, PayPal is expanding its partnership with Fiserv, working toward stablecoin interoperability through the integration of its PYUSD stablecoin and Fiserv’s FIUSD.
The result is real-time, programmable payments across thousands of banks and millions of merchants with no added tech overhead. This PayPal-Fiserv stablecoin partnership could be central to making PayPal blockchain settlement features accessible to the mainstream.
Risks of PayPal’s stablecoin integration
While PayPal enables crypto for merchants, rollout isn’t yet universal.
PYUSD is still pending approval from the New York State Department of Financial Services, meaning New York residents can’t yet use PayPal crypto payments involving the stablecoin.
There are also user-side risks. Despite PayPal supporting 100 cryptocurrencies, neither PYUSD nor any crypto held in wallets is insured by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation. That means users would be exposed to loss if wallets, custodians or blockchains fail — an important caveat for anyone exploring how to pay with crypto on PayPal.
Additionally, while the current PayPal crypto transaction fees sit at an attractive 0.99%, this promotional rate will end in mid-2026. Once it rises to 1.5%, it will remain competitive, but the lack of long-term pricing certainty may deter some merchants from relying on PayPal crypto settlement as their default.