New feature aims to slash cross-border transaction costs by up to 90%
July 29, 2025 – Fintech giant PayPal has announced a significant expansion of its crypto capabilities, unveiling a new feature that will allow U.S.-based businesses to accept over 100 cryptocurrencies — including Bitcoin (BTC), Ethereum (ETH), XRP, and Solana (SOL) — for payments.
Dubbed “Pay with Crypto,” the new checkout feature is set to launch in the coming weeks and aims to dramatically reduce the cost of international transactions. According to PayPal, the service could cut cross-border payment fees by as much as 90%.
Faster, Cheaper International Payments
The new crypto checkout tool addresses two major challenges in global commerce: high international transaction fees and complex payment infrastructure. It enables customers to pay with crypto wallets from leading platforms like Coinbase, Binance, OKX, Kraken, MetaMask, and Phantom.
At checkout, digital assets such as BTC, ETH, XRP, USDC, and USDT are automatically converted into PayPal’s stablecoin, PYUSD, before being settled in U.S. dollars for the merchant. This conversion allows for near-instant transaction settlement and eliminates the volatility typically associated with crypto payments.
“Businesses of all sizes face incredible pressure when growing globally—from high costs to complicated integrations. Today, we’re removing those barriers,” said Alex Chriss, CEO of PayPal. “Any business, no matter the size, can now reach a global customer base more efficiently and affordably.”
Competitive Fees and Yield Opportunities
To incentivize adoption, PayPal will charge a 0.99% transaction fee for the first year, increasing to 1.5% afterward — still significantly lower than standard international credit card processing fees.
Chriss shared a real-world example:
“Imagine a shopper in Guatemala purchasing a handmade product from a business in Oklahoma City. With PayPal’s platform, the business accepts crypto, enjoys lower transaction fees, gains near-instant access to funds, and even earns 4% yield on PYUSD held in their account.”
PayPal’s Expanding Crypto Footprint
This rollout marks the latest step in PayPal’s deepening push into crypto. Since late 2020, PayPal has allowed users to buy, sell, and hold select cryptocurrencies — initially BTC, ETH, Bitcoin Cash, and Litecoin. Over time, the company has expanded functionality to include crypto transfers to external wallets and hardware devices.
The introduction of PYUSD in 2023 further cemented PayPal’s crypto ambitions. Today, the PayPal-backed stablecoin ranks as the 12th-largest by market capitalization, with a circulating value of approximately $894 million, according to recent data.
As global demand for digital payments grows, PayPal’s integration of crypto into its vast network signals a broader industry trend — bringing digital assets closer to everyday commerce while eliminating long-standing frictions in cross-border trade.