What Is PayPal Pay with Crypto? Fees, PYUSD, and Merchant Guide 2025

PayPal Pay with Crypto lets merchants in 2025 accept 100+ cryptocurrencies with instant conversion to USD or PYUSD. This feature lowers fees (0.99%), speeds up settlement, and offers 4% APY on balances, helping businesses expand globally while reducing costs.

The crypto market is booming, with a market cap of $3 trillion and over 650 million digital asset holders, including 55 million in the US. The summer of 2025 marked a turning point in the market with the introduction of PayPal Pay with Crypto which allows US merchants to accept payments through crypto and stable-tokens like BTC, ETH, and niche stablecoins. These payments can be automatically settled to US dollars or PYUSD, which offers a 4% APY for merchants.

In this article, we will explore the impact of PayPal Pay with Crypto on merchants in 2025, compare it to BitPay or Coinbase Commerce, and analyze why merchants from Asia, Europe, and Vietnam should be more interested. Moreover, we will provide an overview of Bitget Wallet, highlighting its unique security features and versatile cross-chain stablecoin access for crypto holders.

Key Takeaways

• PayPal Pay with Crypto lets U.S. businesses accept 100+ cryptos, converting instantly to fiat or PYUSD with a promotional 0.99 % merchant fee (~90 % cheaper than credit cards) using the PayPal digital currency tool.
• Merchants can earn 4 % APY on PYUSD balances held, transforming payments into yield-bearing assets.
• Though consumer crypto adoption remains low (only ~2 % in the U.S. use crypto to pay), mobile‑first and emerging‑market users are driving growth across Southeast Asia and Latin America with PayPal crypto payments.
  
  

What Is PayPal Pay with Crypto and Why Does It Matter for Merchants?

PayPal Pay with Crypto is a merchant checkout tool that lets businesses accept digital assets like BTC, ETH, USDT, and more than 100 others. Payments are automatically converted into USD or PYUSD, PayPal’s U.S. dollar-backed stablecoin.

By tapping into PayPal’s massive user base—over 650 million crypto holders globally—and offering seamless 100+ crypto support, this PayPal merchant crypto feature lets merchants reduce typical payment processing costs by around 90 % and reach buyers in new geographies via crypto‑native channels.

This matters for merchants in Vietnam, Southeast Asia, and beyond because it addresses three pain points:

1. Transaction cost: typical cross‑border card fees often exceed 2.5–3 %; PayPal Pay with Crypto charges only 0.99 % for the first year.
2. Settlement speed: funds transfer in minutes instead of days with the PayPal digital currency tool.
3. Currency stability: by settling as PYUSD, merchants avoid crypto volatility and gain access to fixed income via 4 % APY.

 

Source PayPal

How Does PayPal Pay with Crypto Work in 2025?

PayPal Pay with Crypto in 2025 allows merchants to accept over 100 digital currencies while receiving instant settlement in USD or PYUSD. At checkout, customers choose crypto, PayPal performs a real-time exchange, and funds arrive in the merchant’s account with no exposure to price volatility. This makes PayPal crypto payments both low-risk and global in reach.

What Cryptocurrencies and Wallets Are Supported?

In 2025, PayPal Pay with Crypto supports 100+ assets, including:

• Bitcoin (BTC), Ethereum (ETH), Tether (USDT), XRP, BNB, Solana (SOL), and many others.

Shoppers can also pay from leading wallets such as Coinbase Wallet, MetaMask, OKX, Kraken, Binance Wallet, Phantom, and Exodus. They simply select “Pay with Crypto by PayPal” at checkout, connect their wallet, and confirm the transaction—no extra setup for merchants beyond enabling the feature in their PayPal Business dashboard.

Unlike competitors like BitPay or Coinbase Commerce, PayPal’s plug-and-play wallet integration makes crypto payments seamless for both merchants and consumers, leveraging its existing network of 430M+ users.

Source Coinlaw

How Does the Conversion to Fiat or Stablecoin (PYUSD) Happen?

In 2025, PayPal Pay with Crypto automatically converts customer payments into U.S. dollars or PYUSD stablecoin in real time, ensuring merchants never face crypto price volatility. The process mirrors card payments but adds the efficiency of digital assets.

After a customer pays in crypto:

1. PayPal Pay with Crypto immediately converts the tokens—using centralized or decentralized liquidity sources—to either PYUSD or USD.
2. Settlement lands in the merchant’s PayPal account within minutes.
3. If the merchant elects PYUSD, they earn up to 4 % APY on their balance while it remains within the PayPal ecosystem.

This process eliminates both exposure to crypto price swings and operational delays typical of crypto‑to‑fiat conversions. Essentially, merchants accept digital currency but receive the stability and convenience of U.S. dollars or yield‑earning USD‑pegged stablecoin via PayPal Pay with Crypto.

What Are the Fees and Benefits for Merchants Using PayPal Pay with Crypto?

PayPal’s crypto payment system isn’t just a novelty—it’s a cost-effective upgrade for merchants seeking global reach and faster settlements. With reduced fees, yield opportunities, and seamless integration, this PayPal merchant crypto feature presents a practical alternative to traditional payment networks, especially in regions where high transaction costs or currency conversion issues persist.

How Much Can Merchants Save on Transaction Costs?

One of the strongest selling points of PayPal Pay with Crypto is its potential to dramatically cut transaction fees, especially for international sales. Compared to conventional credit card networks, crypto-based payments via PayPal offer a more affordable and transparent fee structure.

• Introductory fee: 0.99 %, valid for the first year of PayPal crypto payments.
• Ongoing fee: projected to rise to 1.5 %, still far below typical 1.75–3 % cross‑border card fees.
• PayPal estimates the feature reduces transaction costs by up to 90 % compared to international credit card charges.

For merchants operating in price‑sensitive markets—such as export businesses in Vietnam or freelancers in Southeast Asia—these savings translate directly to improved profit margins with PayPal Pay with Crypto.

What Are the Main Advantages Beyond Lower Fees?

The main advantages of PayPal Pay with Crypto in 2025 go far beyond the 0.99% fee. Merchants gain faster settlement, global reach, and even yield opportunities—without ever handling digital assets directly. Compared to credit cards (2–3% fees) or third-party crypto gateways, PayPal offers a simpler, one-click integration.

• Global reach – Accept payments from crypto wallet users worldwide, bypassing local rails and costly FX conversions.
• Fast settlement – Real-time conversion ensures funds appear in the merchant’s PayPal balance within minutes.
• Reward potential – Balances held in PYUSD earn up to 4% APY, converting transactions into yield-bearing assets.
• One-click integration – Activate the feature from the existing PayPal Business dashboard—no new setup required.
• New customer base – Tap into crypto-native and DeFi-savvy consumers eager to spend digital assets.

With PayPal Pay with Crypto, merchants not only cut costs—they unlock a future-proof revenue channel that combines predictable settlement, global reach, and embedded interest.

 

Why Aren’t Consumers Paying with Crypto Yet?

Even though PayPal Pay with Crypto in 2025 is merchant-ready, actual consumer adoption of crypto payments remains low. In the U.S., only 2% of adults report using crypto for purchases, compared to 80%+ who rely on cards or mobile wallets like Apple Pay.

The main reasons are:

• Volatility fears – fear of spending assets that could rise in value.
• HODL culture – crypto is seen as an investment, not money.
• Tax complexity – U.S. rules treat purchases as taxable events.
• Historical anecdotes – like the 10,000 BTC pizza story discouraging spending.

As a result, crypto is rarely used for everyday payments. Analysts suggest that stablecoin adoption (e.g., PYUSD, USDC, USDT) and clearer regulations will be key to driving consumer usage in the coming years.

Read more: What is Bitcoin Pizza Day? The Story of a 10,000 BTC Pizza

How Does PayPal Pay with Crypto Compare to Other Merchant Solutions?

Bitget Wallet plays a complementary role in this ecosystem. As a leading self-custodial wallet, it enables users to store, swap, and send crypto securely, giving them the freedom to choose where and how to spend their assets, including through PayPal Pay with Crypto.

For merchants, this expands the pool of potential crypto-paying customers, especially from Asia and emerging markets where Bitget Wallet has a strong user base.

What Competing Services Exist (BitPay, Coinbase Commerce, Circle)?         

Feature / Provider	PayPal Pay with Crypto	BitPay	Coinbase Commerce / USDC	Circle Pay Solutions (USDC)
Accepts 100+ cryptos	✅	Under 20 major ones	USDC, ETH, BTC	USDC‑based
Instant crypto → stablecoin/fiat	✅	✅ (bitpay USD)	✅	✅
Merchant fee	0.99 % → 1.5 % (<1 year)	1 %–1.5 %	Free with USDC (but FX costs ahead)	Varies
Hold stablecoin for yield	✅ 4 % APY (PYUSD)	No yield	No yield	No yield
U.S. consumer reach via PayPal	✅	No	Limited	Limited
Integration ease	Very simple	Moderate	Technical	Developer‑focused

While BitPay and Coinbase Commerce offer reliable crypto checkout tools, PayPal Pay with Crypto stands out for its deep integration into consumer wallets, massive brand trust, and ability to convert payments into yield via PYUSD 4 % APY, making it uniquely attractive for merchants who want both payment processing and treasury management using the PayPal digital currency tool.

Where Does Bitget Wallet Fit Into the Picture?

Bitget Wallet is a multi‑chain crypto wallet tailored for stablecoin users and DeFi participants. It complements services like PayPal Pay with Crypto by offering:

• Secure storage for USDT, USDC, DAI, PYUSD, and major memecoins.
• Cross‑chain swapping at competitive rates—great for traders and users in Vietnam or Southeast Asia, optimizing between Tron, Ethereum, and BNB Chain.
• Access to trending markets and DeFi applications—not just payments.
• Control over private keys (self‑custody), in contrast to PayPal’s custodial model for PYUSD.

Together, PayPal Pay with Crypto becomes a merchant‑facing payment rail, while Bitget Wallet offers users full financial control and DeFi access. For businesses and digital citizens seeking both checkout and broader crypto utility, using both creates synergy.

Trade, store, and explore Web3 seamlessly – beginner-ready with Bitget Wallet.

What Are the Key Risks and Limitations of Using PayPal Pay with Crypto?

PayPal Pay with Crypto operates within a complex and evolving regulatory landscape. Although PYUSD is issued by a NYDFS-regulated trust company, pending approvals and jurisdictional restrictions could affect availability and functionality.

Additionally, crypto holdings through PayPal lack traditional deposit insurance, exposing merchants to custody and blockchain-specific risks. Ongoing legislative developments, such as the GENIUS Act, may also impact features like PayPal’s interest-bearing stablecoin offerings.

Are There Regulatory and Security Risks?

In 2025, PayPal Pay with Crypto relies on PYUSD, a stablecoin issued by Paxos Trust Company, regulated by the New York Department of Financial Services (NYDFS). While this framework adds credibility, merchants should be aware of key regulatory and compliance risks:

• Pending approvals – PYUSD’s rollout on the Stellar blockchain (planned late 2025) is still awaiting final NYDFS approval.
• Restricted usage – NYDFS or other regulators could temporarily limit PYUSD in certain states or block specific blockchains.
• Lack of insurance – Digital assets held via PayPal are not FDIC- or SIPC-insured, exposing merchants to custody and outage risks.
• Evolving regulation – Under the new GENIUS Act, yield features like PayPal’s 4% APY may face compliance restrictions if deemed non-compliant.

While PayPal emphasizes compliance and regulatory alignment, merchants adopting PayPal Pay with Crypto in 2025 should factor in these potential PYUSD regulatory risks when planning long-term adoption.

Read more:What Is the GENIUS Act? U.S. Stablecoin Regulation Explained (2025 Guide)

What About Market and Redemption Risks of PYUSD?

PYUSD is a fiat-backed stablecoin, primarily collateralized by U.S. Treasury bills and cash reserves, designed to maintain a 1:1 peg with the U.S. dollar. However, redemption options outside of PayPal and Paxos authorized channels are not guaranteed for users holding PYUSD in self-custody wallets. In situations where the market peg experiences divergence—such as during liquidity shortages—merchants in countries like Vietnam or the Philippines may encounter price slippage or difficulty converting PYUSD into local currencies.

For businesses in emerging markets, understanding these redemption mechanisms and local exchange options is critical to ensuring reliable currency conversion.

• PYUSD is fiat‑backed (U.S. Treasury bills, cash reserves) and aims for a 1:1 peg. However, redemption outside PayPal or Paxos channels is not guaranteed for users holding PYUSD in self‑custody wallets.
• If the market peg diverges (say, in liquidity crunches), merchants operating from countries like Vietnam or the Philippines may face price slippage or liquidity challenges when converting PYUSD to local currency.

Understanding redemption mechanics and local exchange options for PYUSD becomes essential for businesses in emerging markets that need to convert U.S. dollars to VND or PHP reliably.

How Could PayPal Pay with Crypto Evolve the Future of Global Commerce?

As regulatory clarity around stablecoins improves, particularly through initiatives like the GENIUS Act, digital assets are poised to move beyond speculation and into the core of global payment infrastructure. PayPal Pay with Crypto’s expansion marks an early step toward that shift, laying the groundwork for a blockchain-based network connecting wallets and users across continents.

• As the U.S. advances stablecoin legislation (GENIUS Act), crypto may shift from speculative to bona fide payment infrastructure—especially for remittances, freelance payouts, and global small business settlements using PayPal Pay with Crypto.
• PayPal’s launch is just Phase 1 of “PayPal World”, a broader effort poised to integrate wallets from China, India, and Latin America into a blockchain‑based settlement layer by 2026.
• Cross‑border commerce—especially between Asia and North America—is likely to migrate towards crypto rails. Southeast Asian exporters, freelancers, and SaaS vendors may soon be quoting efforts in PYUSD or crypto‑native terms.
• If consumer crypto spending grows beyond the current 2 % U.S. baseline, merchants that onboard early with PayPal Pay with Crypto will have a competitive edge in capturing a new, global crypto‑native revenue stream.

In short, PayPal Pay with Crypto could evolve into the backbone of crypto‑based commerce, with stablecoin rails enabling faster, cheaper, and more borderless trade.

Why Use Bitget Wallet for Stablecoin Management?

Bitget Wallet is a next-generation multi-chain wallet purpose-built for users managing stablecoins like USDT, USDC, and DAI. Whether you're storing, swapping, or using stablecoins in DeFi, provides a secure, efficient, and user-friendly experience.

• Multi-Chain Support:

  Store and manage USDT, USDC, DAI, and other stablecoins across 100+ blockchains, including Ethereum, BNB Chain, Arbitrum, Polygon, and more.

• Cross-Chain Stablecoin Swaps:

  Instantly swap stablecoins across different networks without using a centralized exchange — ideal for moving funds between DeFi ecosystems.

• Low Fees for Stablecoin Transfers:

  Benefit from optimized gas usage and low transaction fees, even on Layer 1 chains like Ethereum.

• Integrated dApp Browser:

  Connect directly to top DeFi protocols to lend, borrow, stake, or earn yield on your stablecoins, all without leaving the wallet.

• Non-Custodial Security:

  Maintain 100% control of your assets and private keys with industry-leading encryption and seed phrase backup options.

• Designed for Payments and DeFi:

  Whether you're sending stablecoins for payments or actively participating in decentralized finance, BGW offers the tools and flexibility you need.

• Web3 Gateway:

  Access a curated list of trusted dApps and platforms where stablecoins can be used for real-world utility or advanced financial strategies.

If you’re using PayPal Pay with Crypto as a merchant or spender, download Bitget Wallet to manage

securely and explore Web3 seamlessly. It’s the perfect companion solution for users who want both payments and DeFi access.

Conclusion

PayPal Pay with Crypto in 2025 offers a low-cost, globally accessible gateway into Web3 commerce. Businesses benefit from a 0.99% processing fee, 4% APY on PYUSD balances, and instant settlement, while gaining access to crypto-native customers worldwide.

The trade-off is regulatory uncertainty: features like PYUSD on Stellar still await NYDFS approval, the GENIUS Act could reshape stablecoin yield rules, and digital assets remain outside FDIC or SIPC insurance.

Bottom line: crypto adoption for merchants is no longer a future trend — it’s happening now. For digital-forward businesses, especially across Southeast Asia and Latin America, PayPal Pay with Crypto is a timely bridge into mainstream digital payments.

👉🏻 For secure, cross-chain stablecoin management and access to trending crypto markets,  Bitget Wallet offers an all-in-one solution—download now to explore the next phase of digital payments.

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FAQs

1. How does PayPal Pay with Crypto work?

Users pay with crypto in over 100 supported tokens; PayPal Pay with Crypto auto‑converts to USD or PYUSD and settles instantly into merchant accounts.

2. Does PayPal charge fees for crypto payments?

Yes. There’s a 0.99 % fee for the first year (rising to about 1.5 % later), typically about 90 % cheaper than international credit card rates for PayPal crypto payments.

3. What currencies does PayPal Pay with Crypto support?

It supports BTC, ETH, USDT, XRP, BNB, SOL, USDC, and many others—100+ in total—via more than a dozen wallet integrations through the PayPal digital currency tool.

Risk Disclosure

Please be aware that cryptocurrency trading involves high market risk. Bitget Wallet is not responsible for any trading losses incurred. Always perform your own research and trade responsibly.