PayPal has announced that it will now support cryptocurrency transactions for U.S. business account holders, allowing merchants to buy, hold, and sell digital assets directly through their PayPal business accounts. This marks a significant expansion of PayPal’s crypto offerings, reflecting the company’s response to growing market demand.
However, this new service will not be available to businesses in New York at launch due to local regulatory restrictions. The move represents a strategic step by PayPal to enhance its digital finance tools for businesses.
On-Chain Crypto Transfers for Businesses
In addition to enabling crypto purchases, PayPal’s new service also allows U.S. business account holders to transfer cryptocurrencies on-chain to third-party wallets. This functionality provides merchants the ability to send and receive digital assets to and from external blockchain addresses, improving their capacity to manage crypto holdings efficiently.
This update aligns with PayPal’s broader vision of integrating cryptocurrency into everyday business operations. Since 2020, when PayPal first introduced crypto services to its consumer accounts, the company has steadily pushed towards mainstreaming digital assets.
Expansion of Crypto Offerings and Stablecoin Launch
PayPal has significantly broadened its cryptocurrency offerings over the past few years. In 2023, the company launched PayPal USD (PYUSD), a stablecoin backed by U.S. dollar reserves. This stablecoin functions as a funding option across PayPal’s ecosystem, including international transactions on Xoom, PayPal’s cross-border payments platform. PYUSD’s integration with the Solana blockchain further provides users with flexibility by supporting multiple blockchain networks.
Partnerships to Broaden Crypto Accessibility
PayPal has also forged partnerships to enhance its crypto capabilities. Recently, Crypto.com collaborated with PayPal to enable seamless transfers between the platforms, allowing users to link their wallets and purchase cryptocurrencies directly through PayPal. This feature is expected to expand to additional markets outside the U.S. in the near future.
In another notable partnership, MoonPay teamed up with PayPal to offer a new crypto purchasing option for app users in the U.S. This service enables transactions via wallet transfers, bank transfers, and debit cards, bridging traditional financial services with the cryptocurrency market. The collaboration aims to facilitate broader adoption by giving users access to a wider array of digital assets.
Furthermore, PayPal’s ongoing efforts to expand its global reach include securing approval from the Financial Conduct Authority (FCA) to offer digital asset services in the United Kingdom.