PayPal has recently made a significant announcement regarding its entry into the cryptocurrency market by launching a new payment gateway called “Pay with Crypto.” This platform allows merchants to accept payments in over 100 different cryptocurrencies, boasting transaction fees that may be up to 90% lower than traditional credit card fees.
As reported by TechRadar, this initiative marks a strategic move for PayPal to reach the rapidly growing cryptocurrency market, which is valued in the trillions. With a user base exceeding 650 million, PayPal aims to broaden its financial services by integrating cryptocurrencies into its payment options.
Key features of the “Pay with Crypto” platform include a notably competitive fee structure. For the first year, PayPal will charge a reduced fee of 0.99%, followed by a rate of 1.5% in subsequent years. This fee structure positions the platform as a more cost-effective alternative to standard international credit card transaction fees.
Merchants stand to benefit significantly from this offering, as it enables them to accept cryptocurrency payments, potentially increase their profit margins, and enjoy lower transaction costs. Additionally, those who choose to hold their funds in PayPal’s stablecoin, PYUSD, can earn an annual interest rate of 4%.
The platform will support a range of leading cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), USDT, XRP, and Solana. It will also be integrated with popular digital wallets such as MetaMask, Binance, Coinbase, Kraken, and Phantom, facilitating easy payments for users from their digital asset portfolios.
This move is seen as a response to competitors in the space, particularly Stripe, which has been accepting USDC payments since June 2025. The competition for market share in cryptocurrency payments has intensified, with estimates suggesting the market generated nearly $94 billion in the past two years alone.
Initially, the “Pay with Crypto” service will be rolled out exclusively to merchants in the United States. Despite this limitation, PayPal’s announcement signifies a major step towards mainstream adoption of digital currencies in everyday financial transactions.