PayPal crypto P2P lets users send Bitcoin, Ether and PYUSD via PayPal Links or direct transfers to PayPal, Venmo and external wallets, enabling seamless peer-to-peer crypto payments and expanding utility beyond trading to everyday payments and remittances.
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PayPal Links enable one-time personalized payment links for crypto transfers.
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Supported assets initially include Bitcoin (BTC), Ether (ETH), PYUSD and other compatible tokens.
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PYUSD market cap near $1.3B and stablecoins could cut remittance costs by up to 92% (World Bank data cited).
PayPal crypto P2P: Send Bitcoin, Ether and PYUSD via PayPal Links and direct transfers—learn how to use it and what it means for payments. Read now.
The payments giant is rolling out PayPal links and direct crypto transfers, letting users send Bitcoin, Ether and PYUSD to friends, family and external wallets.
Published: 2025-09-15 | Updated: 2025-09-15 | Author/Organization: COINOTAG
PayPal, the global payments giant with over 400 million active accounts, is adding cryptocurrency to its peer-to-peer (P2P) payments, enabling users to send and receive digital assets directly — a step that could accelerate mainstream adoption beyond investment and trading.
On Monday, the company unveiled PayPal links, a personalized one-time link generated in the PayPal app that can be shared across text, email or chat. The feature will launch first in the US before expanding into the United Kingdom, Italy and other international markets later this year.
In the near term, users will be able to send cryptocurrencies and stablecoins directly through PayPal’s P2P feature, both to PayPal and Venmo users, as well as to compatible digital assets. The supported cryptocurrencies will include Bitcoin (BTC), Ether (ETH), PYUSD (PYUSD) and others, the announcement said.
PayPal emphasized that personal transfers made through Venmo or PayPal will not trigger 1099-K tax reporting, since friends-and-family payments are generally exempt.
Both PayPal links and the crypto P2P capability are being introduced under PayPal World, the company’s new interoperability framework designed to connect wallets and payment systems across borders.
The company has steadily expanded its presence in digital assets. Earlier this year, it rolled out “Pay with Crypto,” a blockchain-based settlement service that lets US businesses accept payments in over 100 cryptocurrencies. In April, PayPal broadened its Venmo and PayPal crypto offerings to include Chainlink (LINK) and Solana (SOL).
What is PayPal crypto P2P and how does it work?
PayPal crypto P2P is a peer-to-peer payments feature that allows users to send and receive cryptocurrencies via PayPal Links, Venmo, or direct wallet transfers. Users generate a one-time PayPal Link or choose a wallet address to transfer BTC, ETH, PYUSD or other supported assets to recipients on PayPal, Venmo, or external wallets.
Why are PayPal Links important for mainstream crypto use?
PayPal Links simplify crypto transfers by removing the need to share raw wallet addresses. The one-time links can be sent by text or chat, improving user experience and lowering entry barriers for non-technical users. This approach blends custodial convenience with increased interoperability.
How will PayPal crypto P2P affect remittances and payments?
Stablecoins like PYUSD enable near-instant transfers with lower fees. The World Bank has indicated stablecoin rails could reduce transaction costs by as much as 92%. By enabling wallet-to-wallet and cross-platform transfers, PayPal could make low-cost cross-border payments more accessible.
What are the risks and regulatory considerations?
Central banks and international bodies remain cautious. The Bank for International Settlements has noted stablecoins can behave like financial assets rather than sovereign currency, raising monetary and regulatory concerns. PayPal’s custodial model also means users rely on a centralized provider for on- and off-ramps.
Frequently Asked Questions
Can I send crypto from PayPal to an external wallet?
Yes. PayPal crypto P2P supports transfers to compatible external wallets, allowing users to move assets off-platform. Supported assets at launch include Bitcoin, Ether and PYUSD.
Will P2P crypto transfers trigger tax forms like 1099-K?
Personal friends-and-family transfers via Venmo or PayPal are generally exempt from 1099-K reporting, and PayPal has said these P2P transfers will not trigger 1099-K tax forms.
Which cryptocurrencies are supported initially?
Initial support includes Bitcoin (BTC), Ether (ETH) and PYUSD, with the potential to add more tokens over time as compatibility and regulatory approvals allow.
Key Takeaways
- PayPal crypto P2P rollout: Adds PayPal Links and wallet transfers for BTC, ETH and PYUSD.
- Remittance impact: Stablecoins could materially lower cross-border fees (World Bank estimate cited).
- Centralized custody: PayPal bridges convenience and interoperability but maintains custodial control.
Conclusion
PayPal’s expansion into P2P crypto with PayPal Links and direct wallet transfers marks a notable shift toward practical payments use cases for digital assets. By integrating BTC, ETH and PYUSD across PayPal and Venmo and enabling external wallet transfers, PayPal aims to bring crypto utility to everyday payments. Watch for broader international rollout and evolving regulatory guidance.
