PayPal has introduced Pay with Crypto, facilitating connections between cryptocurrencies, digital wallets, and merchants. This move significantly cuts down on transaction fees for cross-border transfers by up to 90%.

Addressing Global Payment Challenges

Across the globe, businesses encounter financial burdens from high cross-border payment fees while dealing with intricate banking systems. To address these challenges, PayPal’s Pay with Crypto service enables immediate conversion of crypto into stablecoins or fiat currencies.

This innovation supports both small and large enterprises by reducing costs and streamlining operations for international transactions. By accepting crypto payments through PayPal, businesses can boost their profit margins and achieve faster access to funds, with a portion of these funds stored as PYUSD on the platform at an interest rate of 4%.

Details About PYUSD

Issued by Paxos Trust Company, LLC, PYUSD is a fully-backed cryptocurrency, secured by USD deposits and US Treasuries. Individuals can buy or sell PYUSD at a fixed rate of $1.00 per PYUSD unit through PayPal’s services.

Pay with Crypto aligns with PayPal’s commitment to fostering the growth and integration of digital currencies into its global payment solutions, enhancing the range of payment methods available for users worldwide.

Broader Ecosystem and Growth Opportunities

The service is designed to support more than 100 cryptocurrencies and multiple wallets, including Coinbase and MetaMask. This extensive compatibility opens up new revenue streams for merchants by tapping into a vast network of crypto users.

Moreover, the introduction of PayPal World consolidates five digital wallets under one umbrella, allowing customers to utilize their preferred payment methods internationally with ease. Through AI agents, customers can easily pay international businesses using local payment systems or wallets and also transfer money across borders more efficiently.