PayPal Slashes Global Payment Fees with New Crypto Checkout Service

PayPal has launched its groundbreaking “Pay with Crypto” service, aiming to revolutionize how U.S. merchants handle international transactions. The new feature boasts a flat 0.99% fee, offering an impressive 90% reduction in costs compared to conventional cross-border credit card fees, which often exceed 2.5% to 3.5%—and sometimes more due to conversion rates and third-party intermediaries.

This innovative service allows customers to make purchases using over 100 supported cryptocurrencies, including popular assets like Bitcoin (BTC), Ethereum (ETH), USDC, USDT, XRP, Solana (SOL), and more. It also integrates smoothly with major crypto wallets, such as MetaMask, Coinbase Wallet, Kraken, Binance, Phantom, and Exodus. Once a crypto payment is made, the funds are instantly converted into PayPal USD (PYUSD) or directly into U.S. dollars, ensuring merchants receive stable-value settlements with minimal volatility risk.

The cost savings are significant. A merchant previously paying $1,000 in fees on a $10,000 international transaction could now pay only $99, dramatically increasing profitability from overseas customers. Furthermore, merchants can choose to retain their balances in PYUSD, where they can potentially earn 4–4.5% APY, turning settlement accounts into yield-generating assets.

This move is part of PayPal’s larger strategy to embrace crypto and stablecoins as a core part of its global payments ecosystem. By streamlining digital payments and cutting transaction fees, PayPal is positioning itself as a bridge between traditional finance and the crypto economy. Though currently limited to U.S. businesses—with regulatory approval pending in New York—the company is expected to expand access globally.

In essence, PayPal’s crypto payment rollout isn’t just about adding a new payment option—it’s about redefining global commerce for the digital age.