PayPal launches "Pay with Crypto," reducing cross-border transaction fees by 90%

Author: Blockchain Knight

On July 28, PayPal announced a new initiative called "Pay with Crypto," aimed at streamlining global commerce and significantly reducing cross-border transaction costs.

The company stated that the service can reduce international transaction fees for merchants by 90% compared to traditional credit card processors.

This breakthrough is enabled by instant conversion technology from cryptocurrencies to fiat or PayPal's native stablecoin, PayPal USD (PYUSD). The platform supports over 100 cryptocurrencies including Bitcoin and Ethereum, and is compatible with major wallets such as Coinbase and MetaMask.

PayPal expects this move to reach more than 650 million crypto users worldwide, helping merchants tap into the rapidly growing digital asset economy.

PayPal President and CEO Alex Chriss emphasized that the initiative has the potential to eliminate long-standing barriers in international commerce.

He said: "Imagine a consumer in Guatemala buying a specialty gift from a merchant in Oklahoma City. With PayPal’s open platform, the merchant can accept cryptocurrency payments, improve profit margins, reduce transaction fees, gain near-instant access to funds, and earn a 4% yield when holding PYUSD in PayPal."

"Pay with Crypto" integrates fiat and crypto payments into a single interface, offering consumers flexible payment options while helping merchants expand into global markets. This also aligns with PayPal’s broader strategy of expanding stablecoin adoption and enhancing financial efficiency.

The initiative follows recent developments including PayPal’s collaboration with Fiserv to promote global stablecoin adoption.

Meanwhile, PayPal recently launched a new platform called "PayPal World," designed to connect mainstream digital wallets and simplify cross-border commerce.

The initial phase will enable interoperability among five key players: PayPal, Venmo, Tenpay Global, NPCI International (UPI), and Mercado Pago.

The company said this further demonstrates its commitment to "simple, low-cost digital commerce." Chriss added:

"These innovations not only simplify the payment process but also drive merchant growth, expand consumer choice, and lower costs. This is the future of inclusive, borderless commerce, and we’re proud to lead this transformation."