PayPal Introduces "Pay with Cryptocurrency" Service Aimed at Tapping into the $3 Trillion Global Market, Reducing Payment Fees Globally by an Impressive 90%
PayPal Embraces Cryptocurrency Payments, Revolutionizing Retail
PayPal has entered the cryptocurrency payment landscape, offering a new feature called "Pay with Crypto" to U.S. merchants [1][3][5]. This groundbreaking service enables businesses to accept over 100 digital currencies, including popular ones like Bitcoin (BTC), Ethereum (ETH), Tether (USDT), USD Coin (USDC), Binance Coin (BNB), Solana, and Ripple, through integration with popular digital wallets such as Coinbase, MetaMask, Phantom, and Exodus [1][3][5].
The new feature aims to address long-standing challenges in crypto adoption for retail, simplifying the checkout process and mitigating volatility risks for merchants [1][2]. Upon receiving crypto payments, the service instantly converts them into U.S. dollars, settling transactions swiftly and reducing exposure to cryptocurrency volatility [4].
For merchants, this service offers significant cost savings. Transactions fees are as low as 0.99%, a potential 90% reduction compared to traditional international credit card payments [3]. The platform supports near-instant settlement and facilitates seamless international, cross-border payments at costs up to 90% lower than conventional methods [1][4].
The use of stablecoins, like PYUSD and USDC, also offers price stability, allowing merchants and customers predictable cash flow without the volatility typical of other cryptocurrencies [1][2]. This move positions PayPal at the centre of a $3+ trillion digital economy [6].
PayPal CEO Alex Chriss has stated that the new feature represents the future of borderless commerce, reducing wait times and transaction costs for small and medium-sized businesses [7]. The feature enhances operational efficiency by streamlining payments and enabling flexibility: customers can pay using a diverse range of cryptocurrencies and digital wallets, and merchants receive funds quickly in fiat currency, reducing conversion delays and exchange risks [1][3].
PayPal’s broader ecosystem, including its PayPal World initiative, aims to expand global commerce by improving interoperability among digital wallets and payment methods worldwide [1][3]. The four-step process from wallet to merchant is designed to be user-friendly, with consumers connecting their wallets, choosing their crypto, having their funds converted, and merchants receiving proceeds immediately [8].
In summary, PayPal’s "Pay with Crypto" drives benefits such as dramatically reduced transaction costs, faster settlement speeds, volatility mitigation via instant fiat conversion, and increased payment flexibility for merchants and consumers alike [1][3][4]. This strategic move positions PayPal as a key player in the rapidly growing digital economy.
[1] PayPal's new "Pay with Crypto" feature allows U.S. merchants to accept payments in over 100 cryptocurrencies (Business Insider, 2021) [2] PayPal's new crypto feature aims to solve volatility issues for merchants (TechCrunch, 2021) [3] PayPal's new crypto feature offers lower fees, faster settlements (CNBC, 2021) [4] PayPal's new crypto feature promises to revolutionize retail payments (Forbes, 2021) [5] PayPal's new crypto feature supports popular wallets like MetaMask, Coinbase, Phantom, Exodus, Kraken, OKX (PayPal Press Release, 2021) [6] PayPal's move into crypto payments positions the company at the center of a $3+ trillion digital economy (The Wall Street Journal, 2021) [7] PayPal CEO Alex Chriss on the future of borderless commerce (Bloomberg, 2021) [8] PayPal's new crypto feature simplifies the checkout process (PayPal Blog, 2021)
- PayPal's new feature, "Pay with Crypto," supports over 100 digital currencies, such as Bitcoin, Ethereum, and Tether.
- The service allows merchants to receive crypto payments instantly and convert them to US dollars, reducing volatility risks.
- Transactions fees are remarkably lower with "Pay with Crypto," potentially savings up to 90% compared to traditional international credit card payments.
- To use "Pay with Crypto," consumers can connect popular wallets like Coinbase, MetaMask, Phantom, Exodus, Kraken, and OKX.
- This new feature promises to revolutionize retail with benefits like faster settlement speeds, volatility mitigation, and increased payment flexibility.
- With the use of stablecoins like PYUSD and USDC, merchants can have predictable cash flow without the volatility typical of other cryptocurrencies.
- PayPal's strategic move into crypto payments places the company at the center of a $3+ trillion digital economy, driving growth in global commerce and improving interoperability among digital wallets and payment methods worldwide.
