PayPal has revealed a major update to its peer-to-peer payment system, introducing support for Bitcoin, Ethereum, and its own stablecoin, PayPal USD (PYUSD). The move will enable users in the United States to send and receive crypto seamlessly within the PayPal app, making digital payments faster and more accessible.
The integration extends beyond PayPal to Venmo and other global digital wallets that accept cryptocurrencies and stablecoins. This update builds on the success of PayPal Links, a feature that lets users generate one-time personalized payment links that expire after ten days if unused. With crypto added, sending money can now be as simple as sending a text, with funds instantly appearing in the recipient’s PayPal dashboard.
Merchants can now accept over 100 cryptocurrencies through PayPal, broadening digital payment options worldwide. Diego Scotti, General Manager of PayPal’s Consumer Group, emphasized that this step highlights the evolution of money movement, ensuring PayPal is present across messaging apps, emails, and social platforms.
The company also reassured users that personal transfers between family and friends are not subject to 1099K tax reporting rules when used for gifts, reimbursements, or bill-splitting. Peer-to-peer payments remain private and continue to show strong growth, with PayPal reporting a 10% increase in payment volume during Q2. Venmo also saw its fastest growth in three years.
At the heart of this rollout is PYUSD, PayPal’s fully backed stablecoin issued by Paxos Trust Company. Supported by cash and U.S. Treasuries, PYUSD strengthens PayPal’s push into digital asset adoption, placing the firm in direct competition with rivals like Ripple, which is also advancing stablecoin-based payment solutions.
