PayPal has just rolled out a major upgrade to its crypto ecosystem, allowing U.S. businesses to accept payments in more than 100 cryptocurrencies—a move that could dramatically reshape how online commerce works. Popular wallets like Coinbase, MetaMask, Binance, and Kraken are supported, giving users a wide range of options.

Once a customer completes a purchase, the crypto payment is instantly converted into either fiat currency or PayPal’s stablecoin, PYUSD. And with a low transaction fee of just 0.99%, it’s significantly cheaper than traditional credit card rates.

Huge Savings and Bigger Markets for Merchants:

For businesses, the benefits go far beyond convenience. PayPal estimates that international transaction costs could drop by as much as 90%, helping merchants tap into the booming $3 trillion digital asset market and potentially reach 650 million crypto users worldwide.

A Bigger Crypto Suite than Ever:

This expansion builds on PayPal’s 2024 update, which enabled business accounts to buy, hold, and sell crypto assets. Now, users outside New York State can also transfer crypto in and out of external wallets.

PayPal’s stablecoin, PYUSD, launched in 2023, is now fully integrated with the Solana blockchain. It’s expected to gain even more global traction by 2025 through PayPal’s services like Hyperwallet.

Boosting Trust with Strong Protections

To encourage adoption, PayPal is offering up to $50,000 in reimbursement for any unauthorized crypto transfers, mirroring the company’s existing buyer protections. This kind of safety net is rare in the crypto space and could be a game-changer for hesitant users.

Why Businesses Are Jumping In:

From online stores to travel agencies, more and more merchants are embracing crypto thanks to lower fees, faster settlements, and the opportunity to earn up to 4% annual yield on PYUSD balances. Small and mid-sized businesses, in particular, are finding new ways to grow their revenue.

Crypto Goes Mainstream—And So Do Stablecoins:

PayPal’s bold move reflects a wider trend in finance. Major players like Visa, Mastercard, and Revolut are all actively developing their stablecoin systems. Analysts are calling it a “stablecoin gold rush,” fueled by clearer U.S. regulations like the GENIUS Act and a surge in global fintech investments.

Growth and Competition:

Still, challenges remain. While PayPal is expanding its crypto offerings, PYUSD still trails behind dominant stablecoins like Tether and USDC (Circle). Many merchants are cautious, sticking with traditional payment systems for now.

Meanwhile, rivals like Stripe and Coinbase Commerce are rapidly building their crypto payment tools, meaning PayPal will need to stay innovative to maintain its edge.

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