PayPal Introduces Cryptocurrency Buying, Selling, and Transfer Features for U.S. Merchants Excluding New York, Business Accounts Can Now Access Crypto Capabilities and External Wallet Transfers
The new offering allows merchants to manage cryptocurrencies directly from their PayPal business accounts, expanding on the company's growing digital currency services, including transfers to third-party wallets.
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September 25, 2024
Payment Network
Crypto Payments
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PayPal
PayPal Holdings, Inc. has announced that U.S. merchants can now buy, hold, and sell cryptocurrency directly through their PayPal business accounts, although this feature won't be available in New York State at launch. This move is part of PayPal's efforts to expand cryptocurrency functionality for millions of U.S. merchants.
Jose Fernandez da Ponte, PayPal’s Senior Vice President of Blockchain, noted that since enabling consumers to buy, sell, and hold cryptocurrency through PayPal and Venmo, business owners have shown a strong interest in similar capabilities. PayPal is responding to this demand by offering these features to merchants, allowing them to easily engage with digital currencies.
U.S. merchants can now also transfer cryptocurrency to external, third-party eligible wallets and send and receive supported tokens to and from external blockchain addresses.
Since 2020, PayPal has steadily expanded its cryptocurrency services. In 2023, the company introduced PayPal USD (PYUSD), a U.S. dollar-backed stablecoin, which was later integrated into the Xoom platform and made available on the Solana blockchain for greater flexibility.
PYUSD is issued by Paxos Trust Company, with reserves fully backed by U.S. dollar deposits and U.S. Treasuries, and is available for trading at a fixed rate of $1.00 per PYUSD. Paxos handles the issuance and custody of PYUSD, with additional details available in PayPal’s and Paxos’ terms.
