PayPal uses PYUSD stablecoin to enable payments in over 100 cryptocurrencies
PayPal has unveiled a new payment option that will enable small businesses to accept dozens of cryptocurrencies. The tokens will be converted into the PayPal-branded, Paxos-managed PYUSD stablecoin, which is increasingly being folded into the fintech giant’s business model.
"Businesses of all sizes face incredible pressure when growing globally, from increased costs for accepting international payments to complex integrations. Today, we're removing these barriers and helping every business of every size achieve their goals," PayPal CEO Alex Chriss said Monday in a statement.
PayPal will begin by charging 0.99% transaction fees in the first year, which will then be increased to 1.5%, which the company argues is notably low "compared to international credit card processing."
"Imagine a shopper in Guatemala buying a special gift from a merchant in Oklahoma City,” Chriss continued. “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%5 when held on PayPal."
Pay with Crypto, as the new service is called, will be made available to U.S. merchants in the coming weeks. It will initially support wallets from Coinbase, OKX, Binance, Kraken, Phantom, MetaMask, and Exodus.
The new payments feature will even support some of the more well-established memecoins, like TRUMP and FARTCOIN, Fortune’s Ben Weiss reported on Monday. Depending on the token, PayPal will either sell the tokens on a centralized exchange like Coinbase or a decentralized exchange like Uniswap and then send U.S. dollars to merchants.
PayPal began marching into the crypto space in 2020, when it first began supporting the ability to buy, sell, and hold major tokens like Bitcoin and Ethereum. It was also an early mover on stablecoins with the launch in 2023 of PYUSD, which is now the 12th-largest stablecoin with a market capitalization of around $900 million.
The company noted that PYUSD is not insured by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC).
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