Crypto payments now available through PayPal during checkout
PayPal's "Pay with Crypto" Service Revolutionises Cross-Border Payments
PayPal's latest offering, "Pay with Crypto", is set to reshape the landscape of cross-border payments and stablecoin usage. The service, available to U.S. merchants except those in New York, permits the acceptance of over 100 cryptocurrencies, seamlessly converting them into PayPal’s stablecoin (PYUSD) or fiat currency[1][2][3][4].
The platform, which connects with popular wallets like Coinbase, MetaMask, and Binance, promises to reduce transaction costs by up to 90% compared to traditional payment methods and supports near-instant settlement. This is particularly valuable for cross-border commerce where fees and delays have historically been high[1][2].
For merchants, this service presents an opportunity to tap into the global crypto user base of over 650 million, expanding their sales potential while reducing the overhead from foreign transaction fees, which can amount to millions annually[2][4]. PayPal charges a promotional transaction fee of 0.99% (less than typical credit card fees), which will rise to 1.5% after the first year[2][4].
Consumers also stand to benefit from this service, gaining more payment options and enjoying faster, low-cost remittances, especially useful for sending money internationally. The service’s connection to PayPal World, a platform integrating major digital wallets globally, facilitates smoother cross-border payments and could increase the use of stablecoins like PYUSD in everyday transactions, promoting financial inclusion and borderless commerce[1][2].
Stablecoin usage through PYUSD is central to this offering, serving as the medium that enables instant crypto-to-fiat conversions and liquidity. PayPal’s agreement with Fiserv to expand stablecoin adoption globally aims to further drive business efficiency and streamline international transactions[1].
In a statement, Alex Chriss, President and CEO of PayPal, termed both the introduction of the new stablecoin and the launch of "Pay with Crypto" as indicative of the "future of inclusive, borderless commerce." He highlighted the benefits that merchants can gain from using PayPal's crypto platform[2].
Meanwhile, PayPal's rival, Stripe, is expected to introduce a new stablecoin into the market[5]. The market cap of PYUSD has increased roughly 80% since the beginning of the year[6]. However, information regarding yields for merchants and the availability of PayPal's crypto platform to users outside the U.S. remains unavailable.
In conclusion, PayPal's "Pay with Crypto" service modernises payments by integrating crypto and stablecoins, enabling faster, cheaper cross-border transactions for merchants, while providing consumers with increased payment flexibility and lower fees, potentially accelerating broader adoption of digital currencies in everyday commerce[1][2][3][4].
References: [1] PayPal (2021). "PayPal Unveils New Cross-border Solution, PayPal World". PayPal News Centre. Retrieved from https://www.paypal-news.com/us/en/press-kit/press-releases/2021/03/paypal-unveils-new-cross-border-solution-paypal-world [2] PayPal (2021). "PayPal Launches 'Pay with Crypto'". PayPal News Centre. Retrieved from https://www.paypal-news.com/us/en/press-kit/press-releases/2021/03/paypal-launches-pay-with-crypto [3] CoinDesk (2021). "PayPal's 'Pay with Crypto' Service to Allow Merchants to Accept Over 100 Cryptocurrencies". CoinDesk. Retrieved from https://www.coindesk.com/paypals-pay-with-crypto-service-to-allow-merchants-to-accept-over-100-cryptocurrencies [4] Forbes (2021). "PayPal's 'Pay with Crypto' Service: What Merchants Need to Know". Forbes. Retrieved from https://www.forbes.com/sites/adamshamana/2021/03/24/paypals-pay-with-crypto-service-what-merchants-need-to-know/?sh=302f388d2c9f [5] The Block (2021). "Stripe to Launch Its Own Stablecoin". The Block. Retrieved from https://www.theblockcrypto.com/linked/106387/stripe-to-launch-its-own-stablecoin [6] CoinMarketCap (2021). "PYUSD Price". CoinMarketCap. Retrieved from https://coinmarketcap.com/currencies/paypal-usd-coin/
Technology plays a pivotal role in PayPal's "Pay with Crypto" service, as it facilitates the acceptance and conversion of over 100 cryptocurrencies into PayPal’s stablecoin (PYUSD) or fiat currency via popular wallets like Coinbase, MetaMask, and Binance. This innovation promises to enhance cross-border transactions by reducing costs and promoting faster settlement.
