PayPal Expands Crypto Payments For US Merchants To Lower Cross-Border Fees
- Reference: 0178497350
- News link: https://slashdot.org/story/25/07/28/2342234/paypal-expands-crypto-payments-for-us-merchants-to-lower-cross-border-fees
- Source link:
> Using the new Pay with Crypto, merchants can now accept payments in the form of numerous cryptocurrency tokens, including bitcoin, Ethereum, USD Tether and Solana. The transaction fee rate will be 0.99% for the first year, increasing to 1.5% thereafter. The company said that rate is significantly lower than international credit card fees. "Imagine a shopper in Guatemala buying a special gift from a merchant in Oklahoma City," added Chriss. "Using PayPal's open platform, the business can accept crypto for payments, increase their profit margins, pay lower transaction fees, and get near instant access to proceeds."
>
> Merchants who accept cryptocurrency tokens can instantly convert them to dollars or PYUSD, the company's stablecoin, which is a type of cryptocurrency that maintains parity with USD so that every token is always worth $1. Funds stored as PYUSD on PayPal also earn 4% annual rewards. The company said the new service will roll out for U.S. merchants in the coming weeks. [...] Pay with Crypto will initially support cryptocurrency wallets from Coinbase, OKX, Binance, Kraken, Phantom, MetaMask and Exodus, with more planned.
[1] https://newsroom.paypal-corp.com/2025-07-28-PayPal-Drives-Crypto-Payments-into-the-Mainstream,-Reducing-Costs-and-Expanding-Global-Commerce
[2] https://siliconangle.com/2025/07/28/paypal-expands-crypto-payments-us-merchants-lower-cross-border-fees/
[3] https://news.slashdot.org/story/24/10/03/1449235/paypal-completes-its-first-business-transaction-using-stablecoin
So where's the con? (Score:3)
Paypal claims "decreases the cost of transactions by up to 90% when compared to credit card processing" ("Comparison of Pay with Crypto transaction rate and direct credit card processing fees for international sales including currency conversion fees by leading payment processor")
Given the relatively high costs of doing 'crypto' transactions(I think I've seen some of the ones that are most aggressive about trying to be actually usable to transact rather than just hoard claiming to be roughly on par with conventional transaction costs, more computationally expensive but less conventional org overhead; most significantly worse); does the alleged 90% savings just mean that they are counting cost of the transaction from when they receive the coins, not the gas fees that got them there; or picking a particularly grievously overpriced provider of credit card linked currency exchange?
Re: (Score:2)
From the article, the 90% is explained as:
> Comparison of Pay with Crypto transaction rate and direct credit card processing fees for international sales including currency conversion fees by leading payment processor
My guess is they are comparing to Flywire, which does international money transfers in a convenient fashion, but it is quite expensive if you use credit card.
Re: (Score:2, Interesting)
> Paypal claims "decreases the cost of transactions by up to 90% when compared to credit card processing"
Maybe in the banking-stuck-in-the-1970s USA, but here in Europeland, I have a credit card which charges me zero fees to use abroad. They have a decent exchange rate too, and guess what, I can phone them and they *do* actually fix any problems (unlike PayPal). I also get consumer protections too, by the way.
If the USA chose to properly regulate their financial services sector, with customer-advocate st
Re: (Score:2)
> Maybe in the banking-stuck-in-the-1970s USA, but here in Europeland, I have a credit card which charges me zero fees to use abroad.
US credit cards don't charge the cardholder any fees either, whether used domestically or abroad. They, like your card, charge fees to the merchant. The savings here goes to the seller, not to the buyer.
Re: (Score:2)
If I had to guess, Paypal is trying to get out from under the yoke of Visa/Mastercard. The more normal they can make cryptocoin (particularly their own stablecoin), the less they'll have to kowtow to the big two funding sources. Given what's happening right now with Steam and Itch, I can't say I blame them.
Re: (Score:2)
But doesn't Paypal have some of the same restrictioins that Visa and Mastercard implemented to protect them from being associated with "unsavory content." So I get Paypal wanting to establish themselves as a good alternative to Visa/Mastercard but I don't see them as some savior.
Re: (Score:2)
This is actually Stephen Miller.
Legally PYUSD is not âoealways worth $1â (Score:5, Insightful)
Read the fine print. PYUSD is not guaranteed to trade at par in all circumstances. Itâ(TM)s a claim it cannot legally make.
Re: (Score:2)
Shush, there will be no voices of reason in this space. Crypto and so-called-stable-but-not-really-if-you-look-closely stablecoins have been declared the financial messiah and dissent is basically heresy. The message is coming straight from the Oval Office nowadays and congress just passed a law institutionalizing them and that’s practically the ONLY law theyve passed in the past 12 months. This is company scrip v2.0 and we all know how that turned out. It will be fine until a big company decides to r
Sweet, Now PayPal Will Steal Crypto! (Score:1)
PayPal was wondering why they have only been stealing USD, while leaving crypto on the table. Well wonder no more, now they will be be stealing both. Sorry, not stealing, acquiring per your express wishes. After all, it was right there in the fine print on page 12 of the legally unassailable User Agreement, and you and your lawyer both agreed that it was in your best interests to permit PayPal to lock, plunder, or do whatever with your money. How fortunate for PayPal shareholders.
The system works!
Will it help break the payment duopoly? (Score:2)
If it forces Visa and Mastercard to compete, maybe they'll have to stop ripping everyone off.
No privacy coins (Score:2)
No zcash or monero support. But alas, you can pay in Fartcoin. :(
Shame (Score:5, Interesting)
Shame that PayPal is one of the worst ways to pay for anything. Their dispute resolution is crap, and because they act as middle-men you lose some of your rights with chargebacks and other disputes with the card issuer.
Re: (Score:2)
What does PayPal have to do with Trump? It's a 23-year-old company.
Re: Shame (Score:2)
Trump rapes children. Paypal rapes your wallet.