In the wake of the GENIUS Act, major U.S. companies are ramping up their crypto offerings, with PayPal leading the charge in bringing cryptocurrency further into mainstream commerce. The payments giant has introduced a new feature called “Pay With Crypto,” enabling U.S. merchants to accept over 100 cryptocurrencies at checkout. It is important to note that these cryptocurrencies are not insured by the FDIC or the SIPC.
PayPal Reduces Cross-Border Costs to 0.99%
The “Pay With Crypto” feature aims to reduce transaction fees and expand access to global customers. According to a recent press release, merchants can now accept crypto from wallets such as MetaMask, Binance, Coinbase, and others, with the option to receive payment in U.S. dollars or PayPal’s stablecoin (PYUSD) instantly.
Initially, PayPal will charge a 0.99% transaction fee for the first year, which will then increase to 1.5%. However, this fee is still lower than standard fees for international credit card payments.
PayPal CEO Alex Chriss stated, “Businesses of all sizes encounter significant challenges when expanding globally, from higher costs for accepting international payments to intricate integrations. Today, we are eliminating these obstacles and assisting every business, regardless of size, in achieving their objectives.”
He further mentioned, “By facilitating seamless cross-border crypto payments, we are breaking down longstanding barriers in global commerce.”
The feature supports leading cryptocurrencies like Bitcoin, Ethereum, USDT, XRP, and Solana. Once a customer makes a payment in crypto, the funds are instantly converted and deposited directly into the merchant’s PayPal account, requiring no additional setup beyond enabling the feature in PayPal’s business tools.
With the regulatory clarity provided by the GENIUS Act, PayPal’s stablecoin, PYUSD, is expected to see increased adoption and integration into the company’s services.
PayPal’s PYUSD Faces Regulatory Review and Key Usage Risks
In addition to traditional cryptocurrencies, PayPal’s new payment feature will also support popular memecoins like TRUMP and FARTCOIN. Depending on the token type, PayPal will sell it on either a centralized exchange or a decentralized platform like Uniswap, before transferring the equivalent amount in U.S. dollars to the merchant.
It is worth noting that PYUSD has not yet received approval from the New York State Department of Financial Services (NYDFS) for use by residents of New York, potentially limiting its availability in the state until regulatory clearance is obtained.
Furthermore, PYUSD and other digital assets are not protected by the FDIC or SIPC, exposing users to higher financial risk in case of service failure.
The GENIUS Act has reshaped the use of stablecoins, shifting focus from interest-bearing to payments. With interest-earning stablecoins now restricted, issuers are likely to prioritize fast transactions, low fees, and integrated payment and trading features.