Digital payment leader PayPal has expanded its cryptocurrency services by launching "Checkout with Crypto," allowing US customers to pay merchants directly using their digital asset holdings. This upgrade follows PayPal's November 2020 rollout of cryptocurrency trading capabilities nationwide.
How "Checkout with Crypto" Works
When making eligible purchases:
- Your cryptocurrency balance appears alongside traditional payment options (bank accounts, credit/debit cards)
- Single-currency requirement: Transactions must be fully covered by one cryptocurrency type (e.g., only Bitcoin or only Ethereum)
- Automatic conversion: PayPal handles the crypto-to-USD conversion at confirmation
- Refunds return as USD to your PayPal balance
Supported cryptocurrencies include:
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
- Bitcoin Cash (BCH)
Industry Context and Timing
This development arrives shortly after Visa's announcement about piloting USD Coin (USDC) settlements. Unlike volatile cryptocurrencies, USDC is a stablecoin pegged 1:1 to the US dollar. PayPal's solution supports multiple currencies and began full US rollout today.
👉 Discover how crypto payments are transforming e-commerce
Executive Perspective
PayPal CEO Dan Schulman emphasized the company's strategic vision:
"As the use of digital payments and digital currencies accelerates, the introduction of Checkout with Crypto continues our focus on driving mainstream adoption of cryptocurrencies, while continuing to offer PayPal customers choice and flexibility in the ways they can pay using the PayPal wallet. Enabling cryptocurrencies to make purchases at businesses around the world is the next chapter in driving the ubiquity and mass acceptance of digital currencies."
Frequently Asked Questions
What fees apply to crypto transactions?
PayPal charges standard transaction fees but doesn't impose additional conversion fees for cryptocurrency payments.
Can international customers use this feature?
Currently, "Checkout with Crypto" is only available for US-based PayPal accounts.
How does cryptocurrency conversion work?
PayPal automatically converts your crypto to USD at current market rates during the transaction process.
👉 Learn more about secure crypto transactions
Key Benefits for Users
- Simplified Process: Eliminates manual conversion steps
- Expanded Payment Options: More flexibility at checkout
- Mainstream Adoption: Further legitimizes cryptocurrency usage
Looking Ahead
This move signals PayPal's commitment to cryptocurrency integration, potentially influencing broader merchant acceptance. As digital currencies gain traction, features like "Checkout with Crypto" could reshape online payment ecosystems.