PayPal says Pay With Crypto lets purchases settle almost instantly, makes international payments easier and could cut transaction fees by as much as 90%.
PayPal is doubling down on crypto, on Monday launching Pay With Crypto, a new feature that lets customers use Bitcoin, Ethereum and other cryptocurrencies at checkout with millions of merchants worldwide. While PayPal has been investing in crypto in previous years, this move aims to provide easier cross-border transactions and an almost-instant settlement, and reduce transaction fee savings of up to 90%.
When someone chooses to pay with crypto, PayPal automatically converts the digital coins into local currency for the seller. This means merchants don’t have to handle crypto themselves, or worry about price swings since they get paid in dollars or their local money, just like any other transaction. PayPal says this could help businesses save money on fees, especially for international sales.
“Businesses of all sizes face incredible pressure when growing globally, from increased costs for accepting international payments to complex integrations,” Alex Chriss, president and CEO of PayPal, said in the press release. “We’re removing these barriers and helping every business of every size achieve their goals.”
The company also points out that this is part of its bigger plan to make crypto more practical for everyday use, not just investing. Back in April, CNET reported that PayPal teamed up with Coinbase to offer crypto rewards for its stablecoin PYUSD, as well as new incentives for using its app to manage digital assets. And now, PayPal is clearly signaling it wants to move crypto beyond just buying and holding, and into everyday commerce.
PayPal says Pay With Crypto works seamlessly within its existing checkout experience. When paying online, eligible users will see crypto as a payment option alongside credit cards and bank accounts. The crypto is instantly converted to fiat currency behind the scenes, so merchants don’t have to handle any digital coins directly.
PayPal says the system currently supports 100 cryptocurrencies, with plans to expand. PayPal first opened up crypto buying and selling in 2020, but this is the biggest push so far to make spending it part of everyday online shopping. The company says Pay With Crypto will roll out to US users first, with more countries to follow.