PayPal has launched “Pay with Crypto,” a service that allows US merchants to accept cryptocurrency payments.

This feature will roll out in the coming weeks and will support various wallets, including Coinbase, Binance, and MetaMask.

The service will convert cryptocurrencies into PayPal’s stablecoin, PYUSD, which is managed by Paxos.

Merchants will initially incur a transaction fee of 0.99%, which may rise to 1.5% after the first year.

Payments will be processed through centralized exchanges like Coinbase or decentralized platforms such as Uniswap, depending on the specific token.

The service will support a range of cryptocurrencies, including lesser-known tokens.

PayPal entered the crypto market in 2020 by allowing users to buy and sell cryptocurrencies like Bitcoin and Ethereum.

In 2023, it launched PYUSD, which is currently the 12th-largest stablecoin, with a market capitalization of around $900 million.

The company noted that PYUSD is not insured by the FDIC or SIPC.

🔗 Source: The Block

🧠 Food for thought

1️⃣ PayPal’s decade-long crypto strategy demonstrates patient technology adoption

PayPal’s latest crypto payment feature represents the culmination of nearly a decade of measured preparation rather than a reactive move to current market trends.

The company began positioning itself in 2016 by appointing Wences Casares, CEO of bitcoin wallet provider Xapo, to its board, signaling early strategic interest in cryptocurrency 1.

This was followed by a 2019 investment in Cambridge Blockchain, focusing on digital identity solutions that would prove crucial for crypto compliance 2.

Notably, PayPal withdrew from Facebook’s Libra project in 2019 due to regulatory concerns, demonstrating their preference for controlled implementation over rushed market entry 3.

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