PayPal Unveils “Pay with Crypto” for U.S. Merchants
In a bid to increase crypto adoption, PayPal has rolled out a new “Pay with Crypto” feature that will permit the U.S.-based merchants to accept payments in over 100 cryptocurrencies. The new tool works with popular crypto wallets, including MetaMask, Coinbase Wallet, OKX, Kraken, Binance, and Phantom, paving the way for more acceptance of digital assets in the nation.
Frictionless Payments and Low Fees
Customers can pay through the service by connecting their cryptocurrency wallets or scanning QR codes, and merchants will receive payment in USD. It removes price volatility risk for merchants and makes crypto easy for reconciliation. The company has decided to charge a flat transaction fee of only 0.99%, far below the 1.75% normally charged by credit card processors such as Visa.
Targeted at SMEs and Cross-Border Efficiency
This initiative is focused on U.S. merchants only, excluding New York residents. Moreover, small and medium enterprises (SMEs) having problems with expensive cross-border payment charges will benefit from it. PayPal is making cross-border commerce faster, cheaper, and more accessible with blockchain technology and stablecoins.
PYUSD Growth and Rising Competition
News of the stablecoin came as the market cap of PYUSD recorded almost 80% growth from early 2023, from about $497 million to $894 million currently, according to CoinGecko. Now PayPal will compete with Stripe and other fintech giants, as it itself has launched a new set of crypto integration tools.
In June, Stripe teamed up with Coinbase for fiat-to-crypto services and stablecoin payments on its platform.
Mainstream Reach and Crypto Commerce
Although Coinbase has had merchant tools since 2018, the platform has Coinbase Commerce. However, PayPal has a mainstream reach, giving them an advantage in pushing crypto payments into the retail space. As the x402 protocol, which is Coinbase’s HTTP crypto payment system, gains traction, it is clear that the industry is moving towards easier and more automated digital transactions.
Regulatory Clarity and the GENIUS Act
PayPal’s initiative aligns with the growing crypto regulation in the US. A recent act, which was the GENIUS Act, was passed, which essentially created a framework in terms of regulation for a stablecoin. Major platforms like PayPal can integrate stablecoins into their wider financial ecosystems, as they now have regulatory clarity.
Industry Adoption Grows Across Sectors
Recently, many industries—retail, travel, food and beverage, e-commerce, and also real estate—are embracing cryptocurrency payments. This results from the reduced costs, quicker transactions, and global reach.
Conclusion
According to experts, the rollout of the crypto payment feature by PayPal indicates that digital assets are maturing over time as a payment option. By bringing together over 100 token choices with low fees, stablecoin conversion and regulatory foresight, PayPal is bringing traditional payment systems and the decentralized future together. More businesses integrating crypto functionality for the purchase will set a new standard for financial innovation via “Pay with Crypto.”
