PayPal is making it easier for small businesses in the United States to accept cryptocurrency from customers around the world. The company has rolled out a new service called Pay with Crypto, allowing merchants to receive payments in dozens of digital assets, including even popular memecoins like TRUMP and FARTCOIN.
What makes this move particularly business-friendly is that PayPal will automatically convert all crypto payments into PYUSD, its U.S. dollar-backed stablecoin issued by Paxos. This means merchants don’t need to worry about crypto volatility—they receive funds in a stable currency quickly and with fewer fees.
Faster Payments, Lower Fees for Global Transactions
PayPal says the new service aims to solve one of the biggest hurdles for small businesses: high fees and complexity when accepting international payments. The launch pricing starts with a 0.99% transaction fee for the first year, rising to 1.5% afterward, which is still lower than typical international credit card processing rates.
Crypto from customers will be accepted through a wide range of popular wallets, including Coinbase Wallet, OKX, Binance, Kraken, Phantom, MetaMask, and Exodus. Whether the payment comes in ETH, BTC, or a niche token like FARTCOIN, PayPal will convert the crypto to PYUSD using exchanges like Coinbase or Uniswap, giving merchants access to U.S. dollars.
What Is PYUSD and How Safe Is It?
PYUSD, introduced by PayPal in 2023, is a stablecoin pegged to the U.S. dollar and managed by Paxos, a regulated blockchain infrastructure firm. It’s designed to give businesses and consumers the benefits of digital currencies while maintaining price stability. PYUSD is now the 12th-largest stablecoin by market cap, showing strong adoption since its launch.
However, PayPal is clear about one thing—PYUSD is not insured by the FDIC or SIPC. While it’s designed to be stable and backed by reserves, it doesn’t carry the same protections as a traditional bank deposit.
This latest move continues PayPal’s expansion into digital finance, a journey it began in 2020 when it first allowed users to buy, hold, and sell crypto. With “Pay with Crypto,” small businesses may now find it easier than ever to tap into the global digital economy—without getting tangled in the complexity of handling crypto themselves.
