PayPal expands cryptocurrency capabilities for U.S. merchants, allowing them to buy, hold, and sell crypto
PayPal Holdings, Inc. (NASDAQ: PYPL) has announced a major update for its U.S. business customers. Merchants can now buy, hold, and sell cryptocurrency directly from their PayPal business accounts. This new feature builds on PayPal’s commitment to expanding cryptocurrency utility, now reaching millions of U.S. merchants. However, the service is not yet available in New York State.
Jose Fernandez da Ponte, PayPal’s Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies, emphasized the demand from business owners for crypto services. “Since launching crypto capabilities for consumers, we’ve learned a lot about how they want to use it,” said da Ponte. “Business owners increasingly want the same capabilities. We’re excited to meet that demand.”
Alongside the buying and selling of cryptocurrency, U.S. merchants can now transfer supported tokens externally. Business account holders can send and receive cryptocurrencies from third-party blockchain wallets, adding more flexibility.
PayPal has been steadily increasing its crypto services. In 2020, PayPal allowed customers to buy, hold, and sell cryptocurrencies via PayPal and Venmo. In 2023, it launched PayPal USD (PYUSD), a U.S. dollar-backed stablecoin. Earlier in 2024, PYUSD was enabled as a fee-free funding option for transfers on PayPal’s Xoom platform. Most recently, PYUSD became available on the Solana blockchain, providing users with greater choice.
New Features: Crypto Transfers and External Wallet Integration
Beyond just buying and selling cryptocurrency, the update includes additional functionality that will further empower merchants. Business account holders can now transfer supported cryptocurrency tokens externally. This means that merchants can send and receive cryptocurrencies to and from third-party blockchain wallets, a feature that significantly increases the flexibility and utility of PayPal’s platform. The ability to transfer crypto on-chain, to addresses outside of the PayPal ecosystem, makes it easier for merchants to integrate cryptocurrency into broader business operations, including accepting payments from customers using digital wallets or paying suppliers in cryptocurrency.
This marks an important shift in PayPal’s crypto services, as the company continues to support wider adoption of digital currencies. Previously, cryptocurrency functionality within PayPal was largely confined to the platform itself, meaning users could buy and sell crypto but couldn’t move it to external wallets. The introduction of external transfers adds a new layer of usability for business owners, who often require more versatile tools to manage their financial transactions.
What is PYUSD?
PayPal USD (PYUSD) is issued by Paxos Trust Company. It’s a stablecoin fully backed by U.S. dollar deposits, U.S. Treasuries, and equivalent cash reserves. PYUSD can be bought or sold through PayPal and Venmo at a 1:1 exchange rate to the U.S. dollar. Paxos, licensed by the New York State Department of Financial Services, manages the issuance and custody of PYUSD.
This expansion strengthens PayPal’s role in bridging cryptocurrency with everyday business transactions.
