PayPal has introduced Pay with Crypto, a service that connects crypto, digital wallets, and merchants to decrease cross-border transaction fees by 90%.

To address the challenges businesses face in cross-border payments, PayPal offers an instant conversion from crypto to stablecoin or fiat currency through its platform.

Lowering Costs and Enhancing Global Trade

No matter if a business is small or well-established, there’s significant pressure when expanding globally due to higher costs of accepting and processing cross-border payments. With Pay with Crypto, companies can accept cryptocurrency payments, boost their profit margins, lower fees, and gain near-instant access to payment funds. The funds in PYUSD, stored on PayPal, earn a 4% interest rate.

PYUSD is issued by Paxos Trust Company, LLC, a fully chartered limited-purpose trust company licensed to operate Virtual Currency Business Activities by the New York State Department of Financial Services. Each unit of PYUSD is backed by US dollars and similar cash equivalents, with a fixed exchange rate of USD 1.00 per PYUSD.

Pay with Crypto supports over 100 cryptocurrencies and wallets like Coinbase and MetaMask, offering merchants greater revenue opportunities while engaging a global network of crypto users. This service also aims to cut transaction costs by up to 90% compared to international credit card processing.

Integrating Digital Currencies into Everyday Life

The launch aligns with PayPal’s broader strategy, PayPal World, which consolidates five digital wallets under one platform. Consumers can now use a domestic payment system or wallet of choice for international transactions and access millions more shops worldwide. Additionally, AI agents assist in managing these transactions.