Following the establishment of GENIUS Act, major US companies are stepping up to aggressively expand their crypto offerings. One of them is PayPal, which is bringing cryptocurrency deeper into mainstream commerce. The payments giant has announced a new feature called “Pay With Crypto,” allowing U.S. merchants to accept over 100 cryptocurrencies at checkout. However, these are not insured by the FDIC or the SIPC.
PayPal Reduces Cross-Border Costs to 0.99%
The “Pay With Crypto” feature is designed to reduce transaction fees and widen the access to global customers. The press release revealed that merchants can now accept crypto from wallets like MetaMask, Binance, Coinbase, and others, while getting paid in U.S. dollars or PayPal’s stablecoin (PYUSD) instantly.
PayPal will start by charging a 0.99% transaction fee for the first year, which will go up to 1.5% after that. The company says this is still low compared to typical fees for international credit card payments.
PayPal CEO Alex Chriss said, “Businesses of all sizes face incredible pressure when growing globally, from increased costs for accepting international payments to complex integrations. Today, we’re removing these barriers and helping every business of every size achieve their goals.
He added, “By enabling seamless cross-border crypto payments, we’re breaking long-standing barriers in global commerce.”
The feature supports major cryptocurrencies like Bitcoin, Ethereum, USDT, XRP, and Solana. Once a customer pays in crypto, the funds are converted in real time and deposited directly into the merchant’s PayPal account. No additional setup is required beyond enabling the option in PayPal’s business tools.
PayPal’s stablecoin, PYUSD, is likely to benefit from the regulatory clarity provided by the GENIUS Act, potentially leading to increased adoption and integration into PayPal’s services.
PayPal’s PYUSD Faces Regulatory Review and Key Usage Risks
PayPal’s new payment feature will even support popular memecoins like TRUMP and FARTCOIN. Depending on the type of token, PayPal will sell it on either a centralized exchange or a decentralized one like Uniswap, then send the merchant U.S. dollars.
However, PYUSD has not received approval from the New York State Department of Financial Services (NYDFS) for use by New York residents. This means availability in New York may be limited until regulatory clearance is obtained.
Importantly, PYUSD and other digital assets are not insured by the FDIC or SIPC. This lack of federal protection means users are exposed to greater financial risk in the event of service failure.
The GENIUS Act has reshaped how stablecoins are used—moving them away from earning interest and focusing more on payments. With interest-earning stablecoins now limited, issuers are likely to focus on fast transactions, low fees, and built-in features for payments and trading.
