PayPal Expands Its Crypto Offering: New Features for Merchants in the U.S.

PayPal has recently revealed that it will allow U.S. business customers to hold, buy, and sell cryptocurrencies. However, this feature will not be available in New York for now.

“At launch, this functionality for Business Accounts will not be available in New York State. Today’s announcement is PayPal’s latest step to increase cryptocurrency’s utility by making increased functionality available to millions of merchants in the U.S”.

–Taken from the statement issued by PayPal.

But that’s just the beginning. The company will now allow sellers in the U.S. to transfer crypto on-chain to eligible third-party wallets. PayPal business account holders can now send and receive compatible cryptocurrencies to and from external Blockchain addresses.

“Since we launched the ability for PayPal and Venmo consumers to buy, sell, and hold cryptocurrency in their wallets, we have learned a lot about how they want to use their cryptocurrency. Business owners have increasingly expressed a desire for the same cryptocurrency capabilities available to consumers. We’re excited to meet that demand by delivering this new offering, empowering them to engage with digital currencies effortlessly”.

–José Fernández da Ponte, Senior Vice President of Blockchain, Crypto Assets, and Digital Currency at PayPal.

PayPal has made notable progress in recent years to promote crypto adoption. A key example is the introduction of its stablecoin, PYUSD, in August 2023. This stablecoin is backed by U.S. dollar deposits and issued by Paxos Trust Company.

“The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the U.S. dollar. Our commitment to responsible innovation and compliance, and our track record delivering new experiences to our customers, provides the foundation necessary to contribute to the growth of digital payments through PayPal USD”.

–Dan Schulman, PayPal CEO.

While PYUSD launched as an ERC-20 token on Ethereum in August 2023, it was deployed on the Solana Blockchain in May 2024. By August of this year, PYUSD’s supply on Solana had already surpassed that on Ethereum, reaching 377 million tokens compared to 356 million. This growth has been fueled by PYUSD integration on decentralized exchanges like Jupiter and Orca, as well as its availability on platforms such as Bitstamp, Coinbase, and Kraken.

PYUSD on Solana features “confidential transfers”, allowing merchants to provide customers with greater privacy in their transactions while complying with regulatory standards.

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