PayPal is set to integrate cryptocurrency into its peer-to-peer payment system, allowing users in the U.S. to send Bitcoin, Ethereum, PYUSD, and other digital assets directly through PayPal and Venmo, with support for crypto and stablecoins across global digital wallets.

The new PayPal Links feature enables users to generate private, single-use payment links that expire after 10 days if not claimed, enhancing security and privacy.

This feature aims to simplify transactions by allowing quick, customizable payment links, potentially improving user convenience and transaction efficiency, especially for international payments in over 110 countries.

The rollout begins in the U.S. in September 2025 and will expand to other countries later this month, with a broader industry event scheduled for late October.

PayPal's move to incorporate crypto transfers reflects a strategic effort to blend traditional payments with blockchain technology, potentially disrupting remittance services and influencing competitors.

Security remains a priority, with PayPal employing AI-powered fraud detection to monitor and intercept suspicious transactions in real-time, addressing rising scams and phishing threats.

Despite these innovations, skepticism persists, with entities like the Bank for International Settlements warning that stablecoins may not fulfill all monetary principles and could behave more like financial assets than true currencies.

While PayPal’s stock has declined by 21.6% year-to-date, it remains undervalued with a forward P/E of 11.88X and a valuation score of A, suggesting potential for growth amid market concerns.

Analysts maintain a moderate buy consensus with an average price target of $83.65, indicating a 25% upside potential despite recent stock performance.

PayPal’s ongoing innovations in crypto and digital payments aim to position it competitively against platforms like Cash App, Venmo, and Coinbase, which are also expanding their crypto services.

Key challenges include building user trust in crypto transfers and navigating evolving regulatory landscapes to ensure mainstream adoption.

This strategic push aligns with PayPal’s 25-year mission to make money movement seamless and integrated with modern messaging platforms, making transactions as effortless as conversations.