TLDR
- PayPal has introduced a new feature allowing users to send and receive cryptocurrencies through its P2P payments system.
- The supported cryptocurrencies include Bitcoin, Ethereum, and PayPal’s own stablecoin, PYUSD.
- PayPal’s new feature will first launch in the United States before expanding to the United Kingdom, Italy, and other markets.
- The new P2P payments system enables users to send cryptocurrencies to external wallets, aligning with decentralized transaction principles.
- PayPal’s decision to integrate digital assets aims to drive mainstream adoption beyond investment and trading.
PayPal has introduced a new feature that will allow users to send and receive cryptocurrencies directly through its peer-to-peer (P2P) system. This move marks a significant step toward increasing mainstream adoption of digital assets. The feature, PayPal links, will enable users to share personalized one-time links across different communication platforms, including text, email, and chat. PayPal has confirmed that the feature will first roll out in the United States, with plans to expand into the United Kingdom, Italy, and other markets later this year.
PayPal Adds Bitcoin, Ethereum, and PYUSD to P2P
PayPal’s latest move will include support for popular cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and its own stablecoin, PYUSD. The company stated that users can now send these digital assets through PayPal’s P2P system, along with stablecoins such as USDC. PayPal’s decision to integrate these assets aims to enhance the utility of cryptocurrencies beyond investment and trading.
PYUSD, PayPal’s dollar-pegged stablecoin, has already gained significant traction. With a market cap nearing $1.3 billion, it has become a key player in the digital payments space. As PayPal expands its crypto offerings, the company plans to add more digital assets in the future, making its P2P payments system more versatile and user-friendly.
PayPal Expands Crypto Services with Venmo, PayPal
The integration of crypto into PayPal’s P2P payments system aligns with the company’s broader strategy to enhance digital asset adoption. “We are committed to providing our users with more ways to interact with digital assets,” said a PayPal spokesperson. This feature enables users to send cryptocurrencies to external wallets, which supports the decentralized nature of peer-to-peer transactions. However, PayPal remains a centralized payment processor, distinguishing it from fully decentralized systems.
PayPal’s crypto expansion is not limited to P2P transactions. Earlier this year, the company launched “Pay with Crypto,” a blockchain-based settlement service that allows US businesses to accept payments in over 100 cryptocurrencies. This development highlights PayPal’s continued push to make cryptocurrencies more accessible and practical for everyday use.
PayPal also emphasized that personal transfers via Venmo or PayPal will not trigger 1099-K tax reporting. This exemption applies because payments made between friends and family are generally not subject to such tax reporting requirements. This feature is expected to make PayPal’s crypto transactions more appealing to casual users, reducing the complexity often associated with digital asset transfers.
