What happened?
PayPal is introducing a new payment method that allows U.S. merchants to accept over 100 cryptocurrencies, reducing transaction fees by up to 90%. This “Pay with Crypto” feature will be available in the coming weeks and covers major coins like Bitcoin and Ethereum, as well as many wallets including Coinbase and MetaMask. The service aims to simplify cross-border commerce by offering a low transaction fee of 0.99% for the first year.
Who does this affect?
This initiative primarily affects U.S. merchants who can now offer cryptocurrency as a payment method, potentially attracting crypto-savvy customers. It also impacts cryptocurrency users who gain more options to spend their digital assets at various merchants. Additionally, international businesses using PayPal could benefit from lower fees when accepting crypto payments, broadening their customer base.
Why does this matter?
By supporting over 100 cryptocurrencies, PayPal’s new feature has the potential to significantly influence the crypto market by increasing the utility and adoption of these digital assets. It reduces traditional payment barriers, such as high fees, thus fostering global commerce and possibly driving merchant growth. As PayPal continues to expand this service globally, it could challenge existing payment systems and promote a more inclusive financial ecosystem.