Introduction to Pay with Crypto

PayPal has launched a new feature called Pay with Crypto, allowing merchants to accept over 100 digital currencies and settle in either fiat currency or PYUSD, the company’s own stablecoin. According to May Zabaneh, head of crypto at PayPal, this feature builds a bridge between traditional payments and the new world of digital assets.

How Pay with Crypto Works

When a customer chooses to pay with crypto, PayPal connects them with a third-party provider called Mesh Connect, Inc. Mesh then transfers PYUSD, a U.S. dollar-denominated stablecoin, from the customer’s available wallet. This process enables instant crypto to stablecoin or fiat conversion, reducing international transaction fees by up to 90%.

Benefits for Merchants and Customers

For merchants, Pay with Crypto means cheaper transactions and access to hundreds of millions of potential customers. For users, it means their crypto holdings finally have more utility. As Zabaneh explained, ‘It connects all those customers who already have crypto with our merchant base. It is a real use case of how to bring together traditional payments and crypto payments.’

Market Impact and Future Implications

Pay with Crypto advances PayPal’s mission to transform commerce by integrating crypto and digital currencies into a unified platform. This move is expected to drive crypto payments into the mainstream, reducing costs and expanding global commerce. With a transaction rate of 0.99%, Pay with Crypto decreases the cost of transactions by up to 90% compared to traditional methods.

Expert Insights and Analysis

According to sources, Pay with Crypto supports transactions across 100+ cryptocurrencies and wallets, such as Coinbase and MetaMask. This solution expands merchant revenue opportunities and taps into a global base of over 650 million crypto users. As Zabaneh stated, ‘You’re already starting to see the use cases emerge, and so we’re really excited.’