PayPal has recently introduced a groundbreaking initiative called “Pay with Crypto” to revolutionize global commerce and lower the cost of cross-border transactions significantly, as per a statement released on July 28th.
The service offers merchants a remarkable 90% reduction in international transaction fees compared to conventional credit card processors. This is achieved through instant conversions from cryptocurrency to fiat or PayPal USD (PYUSD), their native stablecoin. With support for over 100 cryptocurrencies including Bitcoin and Ethereum, the platform is compatible with popular wallets like Coinbase and MetaMask.
According to PayPal, this strategic move opens doors to more than 650 million crypto users worldwide, enabling merchants to tap into the rapidly growing digital asset economy. Alex Chriss, the President and CEO of PayPal, highlighted the program’s potential to eliminate longstanding obstacles in international commerce. He envisions a scenario where a shopper in Guatemala can purchase a special gift from a merchant in Oklahoma City seamlessly using PayPal’s open platform, thereby boosting profit margins, reducing transaction fees, gaining quick access to proceeds, and growing funds stored as PYUSD at 4% when held on PayPal.
“Pay with Crypto” integrates fiat and crypto payments into a single interface, providing consumers with flexible payment options while empowering merchants to expand their reach to global markets. This initiative aligns with PayPal’s overarching goal to promote stablecoin usage and enhance financial efficiency. In the wake of recent developments, such as PayPal’s collaboration with Fiserv to drive global stablecoin adoption, the company has also launched “PayPal World,” a new platform aimed at linking major digital wallets and simplifying cross-border commerce.
The inaugural phase of “PayPal World” will see interoperability between five key players, including PayPal, Venmo, Tenpay Global, NPCI International (UPI), and Mercado Pago. This move underscores PayPal’s commitment to facilitating streamlined, cost-effective digital transactions. Chriss emphasized that these innovations not only streamline payments but also drive merchant growth, broaden consumer choices, and reduce costs, marking the future of inclusive, borderless commerce that PayPal is proud to spearhead.