Crypto Over Credit Cards: PayPal’s Bold Move in 2025
- How Does PayPal’s New Crypto Payment Feature Work?
- Why Are Merchants Jumping on This?
- PYUSD: PayPal’s Trojan Horse in the Stablecoin Wars?
- The Risks No One’s Talking About
- Bitcoin Hyper: The Side Project Stealing PayPal’s Thunder?
- When Will Europe Get Crypto Checkout?
- FAQ: Your Burning Questions Answered
PayPal is revolutionizing payments by allowing users to shop directly with cryptocurrencies like bitcoin and Ethereum—while merchants receive instant fiat or stablecoin conversions. This feature, currently U.S.-only, combines low fees (0.99%), speed, and access to a $3 trillion crypto market. But beware: transactions are irreversible, and PayPal’s PYUSD stablecoin lacks deposit insurance. Will Europe join the party by 2026? Here’s the full breakdown.
How Does PayPal’s New Crypto Payment Feature Work?
PayPal just flipped the script on digital payments. Starting August 2025, U.S. customers can checkout using 100+ cryptocurrencies—from Bitcoin to Solana—via wallets like MetaMask or Coinbase. The kicker? Merchants get paid in USD or PYUSD (PayPal’s stablecoin) instantly, dodging crypto’s notorious volatility. It’s a seamless integration; users won’t notice changes except for the “Pay with Crypto” button. According to, this bridges a gap for 650 million global crypto holders craving everyday utility.
Why Are Merchants Jumping on This?
Imagine avoiding 10% cross-border fees and waiting days for settlements. PayPal’s crypto option slashes costs to 0.99% and delivers funds near-instantly. Frank Keller, PayPal’s GM for large merchants, told us: “Small businesses now tap into a $3 trillion market without handling crypto directly.” Plus, PYUSD offers 4% APY if held in PayPal accounts—though it’s not FDIC-insured. One sneaky downside? No chargebacks. Once you hit “send,” that payment is.
PYUSD: PayPal’s Trojan Horse in the Stablecoin Wars?
Launched quietly in 2023, PYUSD is PayPal’s answer to USDT and USDC—but with a twist. While only available stateside, it lets merchants bypass fiat conversions entirely. “It’s about making crypto feel like cash,” a BTCC analyst noted. Regulatory hurdles (looking at you, EU’s MiCA) delay its global rollout, but 2026 seems plausible. Fun fact: PYUSD’s reserves include short-term Treasuries, making it a quasi-interest-bearing asset.
The Risks No One’s Talking About
•PYUSD isn’t covered by deposit insurance. If PayPal collapses, your funds could vaporize.
•Mistakenly sent $1,000 in BTC? Tough luck—transactions can’t be reversed.
•Europe’s MiCA rules might force PYUSD to rebrand or restructure.
Bitcoin Hyper: The Side Project Stealing PayPal’s Thunder?
While PayPal bets on payments, Bitcoin Hyper merges Bitcoin’s security with Solana’s speed. Users “wrap” BTC for faster transactions—think of it as crypto alchemy. “It’s Bitcoin with espresso shots,” joked a developer on X. Though unrelated to PayPal, it highlights how crypto’s evolution outpaces traditional finance.
When Will Europe Get Crypto Checkout?
PayPal’s lips are sealed, but insiders hint at 2026—pending MiCA compliance. The EU demands stricter stablecoin licensing, unlike the U.S.’s laissez-faire approach. Until then, Europeans must endure the old-school SWIFT system or hop onfor crypto trades.
FAQ: Your Burning Questions Answered
Can I get buyer protection with crypto payments?
Nope. Crypto transactions are irreversible by design. Always double-check wallet addresses.
Is PYUSD safer than other stablecoins?
Not necessarily. Unlike FDIC-backed USD, PYUSD’s reserves carry counterparty risk.
Will PayPal add more cryptocurrencies?
Likely. The current 100+ selection may expand as adoption grows.
