PayPal Adds Crypto to Peer-to-Peer Payments in Major Update

TLDR:

• PayPal now enables cryptocurrency transfers via its app for peer-to-peer payments in the U.S.
• Venmo and other digital wallets worldwide can now support crypto and stablecoin transactions.
• PayPal merchants can accept over 100 cryptocurrencies, broadening payment options for businesses.
• Personal transfers via PayPal and Venmo remain tax-free under the 1099K rules for certain transactions.

PayPal has officially rolled out an update to integrate cryptocurrency into its peer-to-peer payment flow. 

Users in the United States can now send Bitcoin, Ethereum, PayPal’s USD (PYUSD), and other supported digital assets directly through the PayPal app. This new feature adds a cryptocurrency option to PayPal’s already popular payment system, making digital assets accessible for seamless peer-to-peer transactions.

PayPal Brings Bitcoin and Ethereum to Peer-to-Peer Payments

The new feature is not limited to PayPal alone. It extends to Venmo and a growing number of digital wallets worldwide that accept crypto and stablecoins. As part of the integration, users can send and receive cryptocurrencies like sending money through regular bank transfers. 

This update follows the company’s earlier rollout of PayPal links, a feature allowing users to create one-time personalized payment links. These links can be shared via text messages, emails, or direct messages for quick payments, offering both privacy and convenience.

In addition to peer-to-peer transactions, it has also expanded its merchant services. It now enables merchants to accept over 100 cryptocurrencies as payment. This broadens the scope of digital currencies within the PayPal ecosystem, catering to businesses that wish to adopt crypto as a payment method.

This move supports the growing trend of businesses incorporating digital assets into their payment models, further positioning PayPal as a key player in the digital payment ecosystem.

Meanwhile, It assures users that personal transfers between close individuals, such as payments for gifts, reimbursements, or shared bills, are not subject to tax reporting under the 1099K rules. This feature aligns with the company’s goal of maintaining privacy for personal transactions while expanding the reach of its services.

Strong Growth in Peer-to-Peer Transactions

PayPal’s peer-to-peer payment services have demonstrated strong growth, with a reported 10 percent increase in total payment volume during the second quarter of the year. Venmo, which operates under PayPal, also saw its fastest growth in three years. 

The company anticipates that integrating cryptocurrency into its payment flow will attract more users and drive further growth in its peer-to-peer services. 

Despite facing rising competition from other firms, such as Ripple’s recent demo of stablecoin transfer capabilities, PayPal is committed to advancing its digital payments infrastructure.

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