PayPal, the financial technology giant, has taken a significant leap in its cryptocurrency offerings, announcing that U.S. merchants with business accounts can now buy, hold, and sell digital currencies directly through PayPal. This move marks an important step in PayPal’s ongoing effort to integrate cryptocurrency into mainstream commerce, empowering millions of businesses across the U.S. to embrace digital assets with ease.
Starting today, PayPal’s business account holders can manage cryptocurrency just like individual users have been able to since 2020, when PayPal first introduced the ability to buy, hold, and sell crypto. The new functionality will enable businesses to handle cryptocurrencies such as Bitcoin, Ethereum, and Litecoin through their PayPal accounts, offering them greater flexibility and new ways to manage payments. However, it’s worth noting that this feature won’t be available to merchants in New York State at launch.
Meeting the Demand from Businesses
The decision to extend crypto services to business accounts comes as no surprise, given the growing interest in digital currencies from both consumers and business owners alike. Jose Fernandez da Ponte, PayPal’s Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies, emphasized this demand:
"Business owners have increasingly expressed a desire for the same cryptocurrency capabilities available to consumers. We're excited to meet that demand by delivering this new offering, empowering them to engage with digital currencies effortlessly."
By offering crypto management tools to business owners, PayPal is not only addressing a growing demand but also laying the groundwork for businesses to engage more effectively in the evolving digital economy. Whether it’s accepting cryptocurrency as payment or using it as an investment asset, this move allows businesses to diversify their financial strategies.
External Crypto Transfers for Business Accounts
In another major update, PayPal is also enabling external transfers of cryptocurrency for U.S. business account holders. Merchants can now send and receive supported cryptocurrencies to and from third-party eligible wallets, providing businesses with the flexibility to move their digital assets across different platforms. This capability opens the door to greater interoperability within the cryptocurrency ecosystem, allowing businesses to manage their crypto funds more efficiently while benefiting from PayPal’s trusted platform.
This feature builds on PayPal’s continuous efforts to boost cryptocurrency’s utility by making it easier to move, manage, and spend digital currencies in real-world scenarios. The ability to transfer crypto externally means businesses can not only store and hold their digital assets but also send them to external wallets or other parties, enhancing crypto’s role in business operations.
A Track Record of Crypto Innovation
PayPal’s latest announcement is part of a broader, long-term strategy to integrate cryptocurrency into its ecosystem. The company’s journey into the crypto world began in 2020 when it first allowed users to buy, sell, and hold digital currencies in their PayPal and Venmo wallets. Since then, PayPal has continuously expanded its crypto offerings, including the launch of its own stablecoin, PayPal USD (PYUSD), in 2023.
PYUSD, issued by Paxos Trust Company, is a U.S. dollar-backed stablecoin designed to make digital payments more efficient and accessible. Most recently, PayPal made PYUSD available on the Solana blockchain, increasing flexibility for users by providing access to multiple blockchain networks. The stablecoin is also used as a no-fee funding option for PayPal’s international remittance platform, Xoom, making cross-border transfers even more accessible.
With PYUSD, PayPal has created a digital currency that maintains the stability of the U.S. dollar while enabling faster and more cost-effective transactions, both domestically and globally. Backed by U.S. dollar deposits and U.S. Treasuries, PYUSD offers PayPal users confidence in the value of their digital assets, which can be bought and sold at a consistent rate of $1 per PYUSD.
The Road Ahead
PayPal’s latest cryptocurrency updates show the company’s commitment to enhancing digital payments and making cryptocurrency more accessible to businesses and consumers alike. By allowing business accounts to manage and transfer crypto externally, PayPal is positioning itself at the forefront of the ongoing digital currency revolution.
As PayPal continues to expand the utility of cryptocurrency, it’s clear that digital currencies are becoming a more integral part of mainstream financial systems. With the ability to buy, hold, sell, and transfer crypto, U.S. merchants now have the tools to navigate the digital asset space with greater ease and confidence—paving the way for a more interconnected and digitally savvy business landscape.
While this functionality may still be unavailable to merchants in New York State, the rest of the country can now embrace a future where cryptocurrency is just as accessible to businesses as it is to individual consumers. For PayPal, this is yet another step in its mission to bring the world of finance and cryptocurrency closer together.
Catherine
