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SAN JOSE, Calif. - PayPal (PYPL), a prominent player in the Financial Services industry with annual revenue of $31.89 billion, announced Monday the launch of its new "Pay with Crypto" solution that will enable merchants to accept payments in over 100 cryptocurrencies while reducing transaction fees by up to 90% compared to traditional international payment methods. According to InvestingPro data, the company maintains a healthy 41.4% gross profit margin, positioning it well for this strategic expansion.
The service, which will be available to U.S. merchants in the coming weeks, allows businesses to accept cryptocurrencies including Bitcoin, Ethereum, and stablecoins through digital wallets such as Coinbase and MetaMask. PayPal’s system provides instant conversion of crypto to stablecoin or fiat currency. With a market capitalization of $75.84 billion and a strong financial health score rated as GOOD by InvestingPro, PayPal demonstrates the stability needed to support this innovative payment solution.
According to the company’s press release, the new payment solution charges a transaction rate of 0.99% until July 31, 2026, significantly lower than typical cross-border credit card processing fees.
"Businesses of all sizes face incredible pressure when growing globally, from increased costs for accepting international payments to complex integrations," said Alex Chriss, President and CEO of PayPal.
The service is designed to connect merchants to the cryptocurrency market, which PayPal estimates at over $3 trillion, and potentially reach more than 650 million crypto users globally.
This launch follows PayPal’s recent announcement of "PayPal World," a partnership connecting five major digital wallets on a single platform to facilitate international money movement.
The company states that U.S. merchants using the service can also earn 4% rewards on PayPal USD (PYUSD) held with PayPal, though this rate is subject to change.
PayPal notes that digital assets, including PYUSD, are not insured by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation, and users should be aware of various risks associated with cryptocurrency transactions.
The service has not yet received approval from the New York State Department of Financial Services for New York residents.
In other recent news, PayPal announced the launch of PayPal World, a platform designed to connect major global payment systems and digital wallets. Initial partners for this platform include Mercado Pago, NPCI International Payments Limited, Tenpay Global, and Venmo, collectively representing nearly two billion users worldwide. Additionally, PayPal has partnered with Anthropic to integrate its payment services with Claude AI, allowing users to manage transactions and financial insights through conversational commands. In terms of analyst ratings, Truist Securities has maintained its Sell rating on PayPal, citing expectations aligned with guidance for the upcoming second-quarter earnings report. Conversely, RBC Capital reiterated its Outperform rating, showing confidence in PayPal’s monetization strategy after the company’s presentation at the RBC Fintech Conference. Furthermore, PayPal has entered into multi-year agreements with the Big Ten and Big 12 Conferences to manage student-athlete payments, following a court decision permitting revenue sharing with athletes. These developments highlight PayPal’s ongoing efforts to expand its service offerings and strategic partnerships.
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