PayPal has launched a major crypto payments feature that allows U.S. merchants to accept over 100 cryptocurrencies, signaling a bold move to disrupt traditional payment networks like Visa and Mastercard. The new tool enables businesses to accept digital assets like Bitcoin, Ethereum, Solana, USDT, USDC, and XRP, integrating with top crypto wallets such as Coinbase Wallet, MetaMask, Phantom, and Binance.

At checkout, all crypto payments will be automatically converted into PayPal’s stablecoin PYUSD or fiat currency, eliminating the volatility concern for merchants. The feature will initially be available to U.S.-based businesses, excluding New York due to local regulations.

PayPal is undercutting credit card giants with a flat 0.99% transaction fee—around 90% lower than typical processing fees. Visa, by comparison, starts at 1.75%. The goal is to make cross-border transactions cheaper and more accessible for small and medium-sized businesses.

This rollout comes as PayPal’s PYUSD stablecoin sees explosive growth—its market cap surged from $497 million to $894 million in 2024, an 80% jump. The move also heats up the race between PayPal, Stripe, and Coinbase, each competing to lead in global crypto payment infrastructure.

Stripe recently integrated USDC and Coinbase’s Base network, while Coinbase is expanding its x402 protocol that enables stablecoin payments via APIs for AI agents.

PayPal’s crypto expansion is backed by the GENIUS Act, a U.S. law that provides clear regulatory guidelines for stablecoin integration in fintech. Crypto payments are gaining traction in industries from e-commerce to travel, as businesses seek faster and cheaper alternatives to legacy systems.

With crypto adoption accelerating, PayPal’s latest move could reshape the future of digital payments—whether regulators and competitors are ready or not.