PayPal’s new “Pay with Crypto” feature allows US merchants to accept cryptocurrencies like XRP and Solana, converting payments instantly to stablecoins with low fees, enhancing global payment efficiency.
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PayPal enables US merchants to accept multiple cryptocurrencies, including XRP and Solana.
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The feature offers instant settlements and low fees capped at 0.99% during the promotional period.
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PayPal CEO Alex Chriss emphasizes solving high costs in international payments for US businesses.
PayPal’s “Pay with Crypto” lets US merchants accept XRP and Solana with instant settlements and low fees. Discover how this boosts global payments today.
How PayPal’s ‘Pay with Crypto’ Enhances International Payments
PayPal’s “Pay with Crypto” feature revolutionizes international payments by enabling US merchants to accept cryptocurrencies such as XRP and Solana. This system converts crypto payments instantly into PayPal’s PYUSD stablecoin, then into U.S. dollars, ensuring seamless transactions. The service boasts low fees capped at 0.99% for the first year, making cross-border payments more affordable and efficient.
What Are the Benefits for US Merchants?
US businesses gain access to a global customer base with minimal friction, thanks to instant settlements and transparent fees. However, the feature will initially exclude New York due to regulatory restrictions. PayPal CEO Alex Chriss highlights that reducing the cost of international payments is a core goal, aiming to empower merchants with faster and cheaper crypto payment options.
What Are PayPal’s Previous Crypto Initiatives?
Since entering the crypto space in 2020, PayPal has steadily expanded its offerings. Initially, it allowed US users to buy cryptocurrencies, fueling significant market growth. In 2023, PayPal launched its own stablecoin, PYUSD, which currently holds a strong market capitalization. Last September, merchants gained the ability to buy, sell, hold, and move digital assets on-chain within their business wallets, marking a significant step toward full crypto integration.
How Does PYUSD Support PayPal’s Crypto Ecosystem?
PYUSD acts as a stable medium for transactions, reducing volatility risks for merchants and customers. By converting various cryptocurrencies into PYUSD during payment, PayPal ensures price stability and faster settlements. This stablecoin underpins the “Pay with Crypto” feature, reinforcing PayPal’s commitment to integrating digital assets into everyday commerce.
| Feature | Details | Comparison |
|---|---|---|
| Supported Cryptocurrencies | XRP, Solana, and others | Broader than initial 2020 offerings |
| Transaction Fee | 0.99% (promotional), then 1.5% | Lower than typical international fees |
| Settlement Speed | Instant | Faster than traditional bank transfers |
Why Is PayPal Focusing on Crypto Payments Now?
PayPal’s focus on crypto payments addresses the growing demand for faster, cheaper, and borderless transactions. With traditional international payments often costly and slow, integrating cryptocurrencies offers a scalable solution. PayPal’s leadership sees this as a strategic move to maintain its competitive edge and meet evolving merchant and consumer needs.
What Challenges Does PayPal Face?
Regulatory hurdles, such as those in New York, limit immediate nationwide rollout. Additionally, educating merchants and customers on crypto usage remains essential. Despite these challenges, PayPal’s gradual expansion and stablecoin integration demonstrate a clear roadmap toward mainstream crypto adoption.
Frequently Asked Questions
Which wallets are compatible with PayPal’s crypto payments?
PayPal supports wallets such as Coinbase, MetaMask, Binance, Phantom, and Exodus, allowing users to pay with their preferred crypto wallets.
Is ‘Pay with Crypto’ available in all US states?
Currently, the feature is not available in New York due to regulatory restrictions but will roll out in other states soon.
Key Takeaways
- PayPal expands crypto payments: US merchants can now accept XRP, Solana, and more.
- Instant and affordable: Payments settle instantly with fees capped at 0.99% for the first year.
- Strategic innovation: PayPal aims to reduce international payment costs and boost merchant flexibility.
Conclusion
PayPal’s introduction of the “Pay with Crypto” feature marks a significant advancement in digital payments, enabling US merchants to accept multiple cryptocurrencies with instant settlements and low fees. This move reflects PayPal’s commitment to integrating crypto into mainstream commerce, addressing international payment challenges, and positioning itself as a leader in the evolving financial landscape.
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PayPal launches “Pay with Crypto,” enabling US merchants to accept XRP, Solana, and other cryptocurrencies seamlessly.
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The feature offers instant settlements with fees capped at 0.99% during the first year, improving international payment efficiency.
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PayPal CEO Alex Chriss highlights the goal of reducing costly international payment barriers for US businesses.
PayPal’s “Pay with Crypto” enables US merchants to accept XRP and Solana with instant settlements and low fees. Learn how this innovation improves global payments.
