PayPal Enhances Cryptocurrency Services for U.S. Merchants

PayPal (NASDAQ:PYPL) Holdings, Inc. (PYPL) has announced new features allowing U.S. merchants to buy, hold, and sell cryptocurrency directly through their PayPal business accounts. However, this functionality will not be available in New York State at launch. This step aims to enhance cryptocurrency’s utility for millions of U.S. merchants.

Jose Fernandez da Ponte, Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies at PayPal, stated, “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.”

In addition, PayPal will allow U.S. merchants to transfer cryptocurrency to and from external eligible wallets. Business account holders can now send and receive supported crypto tokens with ease.

PayPal has been proactive in enhancing cryptocurrency usage. In 2020, it allowed customers to buy, hold, and sell cryptocurrency from their PayPal and Venmo accounts. In 2023, it launched a U.S. dollar-pegged stablecoin, PayPal USD (PYUSD), and in April 2024, it enabled PYUSD as a funding option for Xoom, facilitating fee-free transfers abroad. Recently, PYUSD was also made available on the Solana blockchain, offering users greater flexibility and control.