PayPal's capability of processing cryptocurrency transactions through its Pay with Crypto challenge.
PayPal Introduces Pay with Crypto: A Game-Changer in Cross-Border Payments
PayPal has entered the stablecoin payment landscape with its new cross-border payments acceptance solution, Pay with Crypto. The innovative service, currently available to merchants in the US, enables customers to pay for purchases using over 100 different cryptocurrencies, with the option to be paid out in either stablecoin or fiat currency.
According to PayPal, Pay with Crypto can decrease the cost of transactions by up to 90% compared to international credit card processing. Across all datapoints, regardless of market, Pay with Crypto represented an average cost reduction of around 8%. This significant reduction in transaction fees is a response to growing concerns about the cost of interchange fees and other card transaction costs.
PayPal's Pay with Crypto has strong potential in the stablecoin payment space, with other companies likely to follow suit. The crypto-based solution comes with a 0.99% transaction rate that will remain fixed until 31 July 2026. This rate is significantly lower than the average fee for cards issued in almost 90% of the countries in the dataset. In fact, Pay with Crypto had an average cost reduction of 53% versus the most expensive provider in each market.
For merchants, the ability to accept stablecoins offers a new avenue for reducing transaction costs, particularly in the US where stablecoins are increasingly being presented as an alternative for payment transactions. However, accessing granular card data for specific markets can be challenging.
To access granular card data by market, you should look into payment service providers and merchant acquirer analytics platforms like Torus Advisors and Nuvei that specialize in card transaction-level intelligence and reporting. Torus Advisors offers granular card transaction analytics, including daily card interchange allocation, transaction enrichment, and detailed reporting with near 100% accurate pricing transparency.
Nuvei provides a global payments platform that delivers real-time, transaction-level visibility into card transactions for merchants, including per-transaction insights into interchange fees, settlement movements, chargeback management, and reconciliation across markets such as North America. Their platform features predictive data and AI-powered fee modeling, enabling merchants to better forecast costs and improve profitability with unified global reporting.
If your interest is more on virtual or corporate card spend data, platforms such as Zil Money or Corpay offer detailed transactional visibility with customizable controls relevant to specific segments or markets. These platforms provide transaction-level data on card spend by merchant, amount, and usage controls, useful in specific markets or internal corporate contexts.
While PayPal's Pay with Crypto data is not provided in this article, it is expected to contribute positively to the stablecoin payment space. Merchants can fund purchases using leading wallets such as Coinbase, Binance, and Kraken with Pay with Crypto, opening up new opportunities for customers and businesses alike.
In the context of PayPal's new Pay with Crypto service, the pricing dataset reveals a significant average cost reduction of 53% compared to the most expensive card providers in each market, demonstrating a potential advantage in terms of card pricing for stablecoin transactions. The technology-driven solution, Pay with Crypto, could revolutionize the finance sector by offering a more cost-effective method for cross-border payments using digital currencies.
