PayPal Goes Full Crypto: Over 100 Tokens Now Accepted at Checkout

Starting now, U.S.-based merchants can accept crypto payments through PayPal’s new service, which plugs directly into popular wallets like Coinbase Wallet, MetaMask, OKX, Kraken, Binance, Phantom, and Exodus. The crypto paid at checkout is instantly converted into either PayPal’s own stablecoin, PYUSD, or good old-fashioned fiat. 

The move was announced formally earlier today, on all channels, source: X

This is more than just a flashy new toy for PayPal’s product suite. It’s a calculated strike at the global payments market. With a 0.99% transaction fee for crypto purchases, nearly 90% lower than Visa or Mastercard’s bloated cut, PayPal is positioning itself as the anti-credit card for merchants tired of bleeding fees.

While traditional rails struggle with friction, cost, and complexity (especially for small businesses), crypto promises instant, borderless money flows. That’s not just a dream anymore, it’s baked into PayPal’s roadmap.

Behind this launch is a not-so-subtle flex: PayPal’s stablecoin, PYUSD, is gaining serious traction. Since January, its market cap has nearly doubled, from $497 million to a respectable $894 million. That’s not exactly Tether territory, but it’s a signal that PayPal is playing the long game. PYUSD isn’t just a backend settlement token, it’s the infrastructure layer PayPal wants to build its future on.

And they’re not alone. This move sets up a direct showdown with the likes of Stripe, which launched stablecoin payments in October 2024 and saw instant adoption across 70 countries. Stripe even joined forces with Coinbase, enabling fiat-to-crypto rails across both platforms and supporting the Base network. It’s a stablecoin arms race, and PayPal doesn’t want to be left holding the bag.

Let’s be real: crypto payments have long been the awkward cousin of crypto speculation. Sure, some stores have accepted BTC since 2013, but most of it was marketing, not meaningful commerce. That’s changing, fast.

With the rise of stablecoins like USDC and PYUSD, and protocols like Coinbase’s x402, which lets AI agents and APIs send crypto over HTTP, the rails are getting smoother. PayPal is simply the latest big player to recognize that crypto-as-payment is having a moment.

The legal winds are also shifting. The recently passed GENIUS Act has paved the way for regulated stablecoin use in U.S. payments. That regulatory clarity is giving fintechs like PayPal the green light to finally go all in.

This isn’t just PayPal being “open to innovation.” This is PayPal rewriting its playbook. With Stripe and Coinbase Commerce already in the game, and decentralized solutions like Lightning and Base growing fast, there’s a battle for the checkout counter.

Expect small businesses, especially those dealing with international customers, to take a long, hard look at this new option. Lower fees, instant settlement, no chargebacks, and zero FX nonsense? That’s compelling. And as merchants adopt it, users will follow.