As per recent announcements, PayPal crypto transfers now let users send Bitcoin (BTC), Ethereum (ETH), and the stablecoin PYUSD through peer-to-peer payments.
The update includes a feature called “PayPal Links,” a one-time link shareable by text, email, or chat. This change adds flexibility for crypto holders and may reshape everyday payments using digital assets.
What PayPal Crypto Transfers Bring to the Table
| Feature | How it works |
|---|---|
| Supported assets | BTC, ETH, PYUSD, plus more crypto assets. |
| External wallet transfers | Users can send assets to crypto wallets outside PayPal or Venmo. |
| PayPal Links | Allows personal one-time link for payments or requests. |
Also read: PayPal CEO Warns: GENIUS Act Could Spark U.S. Stablecoin Breakout
Fees, Networks, and Ease
- Sending PayPal crypto transfers between PayPal or Venmo accounts carries no network fee. External crypto wallet transfers cost the standard blockchain/network fee.
- Converting PYUSD to or from other cryptos carries fees that vary by USD amount. For example, amounts under $75 often carry about 2.20 %, dropping to ~1.50 % for larger amounts.
- PYUSD is fully backed by US dollar deposits, U.S. Treasuries, and similar cash equivalents. Reserves are reported monthly by a third-party auditor.
Where PayPal Crypto Transfers Work Now & Rollout Plans
- The features launch first in the U.S..
- Expansion to the U.K., Italy, and other countries is expected later in 2025.
- Friends and family transfers with crypto will not trigger U.S. IRS 1099-K tax reporting rules.
For Merchants: Pay With Crypto and New Opportunities
Merchants now can opt into “Pay with Crypto.” It allows them to accept over 100 cryptocurrencies, with instant settlement to either PYUSD or USD.
Fee for merchants during the launch is about 0.99 %. Some reports suggest this rate may increase to ~1.5 % after the promotional period.
Conclusion
Based on the latest research, PayPal crypto transfers give users simple ways to send and receive BTC, ETH, and PYUSD across PayPal, Venmo, and external wallets. Many transfers carry low or no fees, and features like one-time links add more convenience.
For merchants, the system brings cost savings, faster settlements, and access to a global customer base, making crypto payments easier and more practical than before.
Also read: Crypto Whales Activities Surge: Bitcoin, Ethereum, XRP, and SOL See Billions in Transfers
Summary
PayPal now lets users take full advantage of PayPal crypto transfers to send Bitcoin, Ethereum, and PYUSD via peer-to-peer or to external wallets. New features include one-time payment links and zero or low fees for many transfers.
Merchants gain access through “Pay with Crypto,” which supports 100+ assets and offers nearly instant settlement with reduced costs. For anyone holding crypto, this upgrade makes transactions easier, cheaper, and more practical.
Glossary
BTC: Bitcoin, the first major cryptocurrency.
ETH: Ethereum, a cryptocurrency and smart contract platform.
Stablecoin: A cryptocurrency pegged to a stable asset, often the U.S. dollar. PYUSD is one such coin.
PYUSD: PayPal USD, a stablecoin fully backed by U.S. dollars and cash-equivalent assets.
Network fee: The fee paid to blockchain networks (miners/validators) to process transfers.
1099-K: U.S. IRS form for reporting certain transactions. PayPal’s personal crypto transfers avoid triggering it
FAQs about PayPal Crypto Transfers
Q: Can PayPal crypto transfers send crypto to any external wallet?
A: Yes, as long as the wallet supports the specific cryptocurrency and network. Be careful to use the correct address; transfers cannot be reversed.
Q: Are there fees when converting PYUSD to ETH or BTC?
A: Yes. Conversion between PYUSD and other supported cryptocurrencies carries fees, varying by amount. Smaller amounts tend to pay higher percentage fees.
Q: Do personal crypto payments via PayPal trigger taxes or forms like 1099-K?
A: No. Personal transfers (friends/family) using PayPal crypto transfers generally avoid 1099-K reporting in the U.S.
Q: What is the fee for merchants using “Pay with Crypto”?
A: Currently about 0.99 % for U.S. merchants during rollout. It may rise later (~1.5 %) after promotional period ends.
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