PayPal Launches Crypto Payments for US Merchants, Supporting 100+ Digital Currencies
The payment service provider PayPal introduced a new function on Monday, which enables smaller companies to accept over 100 different cryptocurrencies as a means of payment.
For the time being, only among US dealers
In addition to established coins such as Bitcoin and Ethereum, retailers can also accept more unusual tokens such as Trump’s Memecoin or Fartcoin. The prerequisite is the use of PayPal’s online payment platform, as a company spokesman said. At the start, however, the new feature is limited to the United States as to whether and when it is introduced in this country is still unclear. For the introduction, PayPal charges a reduced transaction fee of 0.99 percent, which is to increase to 1.5 percent after one year. The fee is therefore below the US average for credit card payments. Frank Keller, Managing Director at PayPal, sees an important step towards blockchain -based payment processing: “It is unclear whether this happens quickly or slowly – but we are watching a clear movement in this direction.”
Technically, the new service works like this: Buyers can connect their existing crypto wallets to the PayPals checkout process. Depending on the wallet used, cryptocurrency is sold via central stock exchanges such as coinbase or decentralized platforms such as uniswap. The proceeds are converted into Pyusd in PayPal’s own stablecoin and then paid out to the dealer in dollars.
Increasing demand
The introduction of the crypto payment function is part of a more comprehensive strategy of the provider to expand its presence in the field of digital assets. As early as 2020, PayPal enabled the purchase, sale and maintenance of cryptocurrencies in the USA. This service was later extended to the subsidiary Venmo.
While the “crypto winter” made reluctance on the part of the user in 2022, the company is now pursuing a more offensive crypto strategy in view of increasing markets and political backing. Since September 2024, business customers have been able to manage cryptocurrencies via their dealer accounts. According to Coingecko, the company’s own stable coin Pyusd has increased around 70 percent of market capitalization since the beginning of the year and is currently around $ 850 million.
