PayPal has unveiled a significant update to its payments ecosystem by integrating Bitcoin, Ethereum and its own stablecoin, PayPal USD (PYUSD), into its new peer-to-peer (P2P) payment flow. The development allows users in the United States to send and receive cryptocurrency directly through the PayPal app, marking a bold move towards mainstream digital asset adoption.
The announcement also confirms that the integration extends beyond PayPal to Venmo and a growing network of global digital wallets. With this, PayPal positions itself as a frontrunner in bringing crypto payments into everyday life.
Seamless Transfers Through PayPal Links
The update builds on the company’s existing “PayPal Links” feature, which enables users to create personalised, one-time payment links. Each link is designed for private use, valid for only one transaction, and expires after ten days if left unclaimed.
Now, with crypto added to the mix, these links allow users to send and receive Bitcoin, Ethereum, and PYUSD seamlessly across platforms, including messaging apps, email, and social media. This simplifies the process of moving digital assets in the same way as traditional money transfers.
Crypto for Merchants and Everyday Transactions
Beyond P2P transfers, PayPal has also enabled merchants to accept over 100 cryptocurrencies for payment settlements. This means businesses can settle transactions in Bitcoin, Ethereum, PYUSD, and other supported tokens.
Diego Scotti, General Manager of PayPal’s Consumer Group, described the move as a milestone in digital payments, noting that PayPal wants to be present “wherever people are having conversations.” By bridging the gap between traditional finance and decentralised assets, PayPal is aiming to normalise crypto payments for both consumers and merchants.
Growth and Stablecoin Strategy
The company highlighted that personal transfers via PayPal will remain personal, without generating unnecessary tax forms for users. This assurance comes as the firm reports a 10% increase in total payment volume during the second quarter of the year, with Venmo experiencing its fastest growth in three years.
Central to the rollout is PYUSD, a stablecoin fully backed by cash and U.S. Treasury reserves and issued by Paxos Trust Company. Available on both PayPal and Venmo since launch, PYUSD is designed to bring stability to digital payments while supporting wider crypto adoption.
By placing PYUSD alongside Bitcoin and Ethereum in its payment flows, PayPal reinforces its strategy to make digital assets as usable as traditional money in everyday transactions.
