PayPal Expands Crypto Payments For US Merchants To Lower Cross-Border Fees

PayPal has introduced "Pay with Crypto" for U.S. merchants, significantly expanding their ability to accept payments globally. This new feature allows businesses to receive over 100 different cryptocurrencies, including popular options like Bitcoin and Ethereum. A key benefit for merchants is the reduction in cross-border transaction fees, which are intended to be lower than traditional credit card fees. Upon receiving a cryptocurrency payment, merchants have the option to instantly convert it to U.S. dollars or PayPal's stablecoin, PYUSD. This instant conversion aims to provide businesses with immediate access to their funds. The service is designed to remove barriers for businesses looking to grow internationally by simplifying payment processing. Alex Chriss, president and CEO of PayPal, highlighted how this innovation helps businesses of all sizes achieve their global growth objectives. Initially, transaction fees will be 0.99% for the first year, moving to 1.5% thereafter, presenting a cost advantage for merchants. PYUSD, being a stablecoin, maintains a fixed value of $1, offering stability for merchants. Furthermore, funds held as PYUSD within PayPal will earn an annual reward of 4%. The "Pay with Crypto" service is set to roll out to U.S. merchants in the coming weeks and will initially support cryptocurrency wallets from major providers like Coinbase, Binance, and MetaMask.