PayPal Expands Crypto Services to Business Accounts

PayPal is taking a bold step in the cryptocurrency space by allowing business accounts to buy, sell, and trade crypto directly through their PayPal accounts. The new feature, announced on September 25, 2024, is now available to U.S. merchants, except those in New York, enabling businesses to engage in the crypto market more easily.

This move comes in response to growing demand from business owners for the same cryptocurrency features that PayPal consumers already enjoy. PayPal’s blockchain executive, Jose Fernandez da Ponte, highlighted the significance of the update, noting that the service aims to simplify digital currency transactions for businesses. Additionally, merchants will have the option to withdraw crypto to external wallets or more secure storage methods.

In another significant development, PayPal’s PYUSD stablecoin, launched in August 2023, is gaining traction. PYUSD, fully backed by U.S. dollar deposits, is now integrated into the Solana blockchain, known for its ultra-low transaction fees. With fees as low as $0.0025, PayPal is positioning PYUSD for everyday purchases, like coffee or meals, which were previously impractical on high-fee networks like Ethereum.

The introduction of “confidential transactions” on Solana adds an extra layer of privacy, masking payment amounts while ensuring transaction transparency for regulatory purposes. PYUSD has grown to a $1 billion market cap but still lags behind giants like Tether and Circle.

PayPal’s latest moves highlight its ongoing commitment to integrating cryptocurrency into mainstream commerce, paving the way for broader adoption in the business world.