PayPay Expands Crypto Payments for U.S. Merchants to Cut Cross-Border Fees

Digital payments giant PayPal (PYPL) said it is rolling out a service that lets U.S. merchants accept over 100 cryptocurrencies in payment for purchases as it aims to cut cross-border fees.

The feature, dubbed Pay with Crypto and available in the coming weeks, enables shoppers to use crypto wallets like MetaMask and Coinbase at checkout. Payments can be made with digital assets such as bitcoin (BTC), ether (ETH), XRP (XRP) and stablecoins like USDC and USDT, covering 90% of the total crypto market cap. The merchants receive U.S. dollars, settling the transaction almost instantaneously, a spokesperson said Monday.

The company will charge a 0.99% service fee, some 90% less than international credit card processing, PayPal said.

“Businesses of all sizes face incredible pressure when growing globally, from increased costs for accepting international payments to complex integrations,” President and CEO Alex Chriss said in a statement.

“Imagine a shopper in Guatemala buying a special gift from a merchant in Oklahoma City,” he cited as an example. “Using PayPal’s open platform, the business can accept crypto for payments, increase their profit margins, pay lower transaction fees, get near instant access to proceeds, and grow funds stored as PYUSD at 4% when held on PayPal.”

The rollout extends PayPal’s push into digital assets, which includes its U.S. dollar stablecoin (PYUSD) and recent partnerships to expand stablecoin use globally. Merchants can also earn yield on PYUSD balances held within PayPal accounts.

Blockchain rails, especially stablecoins, are increasingly viewed as a cheaper and faster alternative for cross-border payments than traditional the banking system.