As of the announcement, Bitcoin was trading around $118,400, reflecting stability over the previous 24 hours.

Despite challenges such as competition, regulatory scrutiny, and fraud, PayPal's established infrastructure and compliance-first approach aim to mitigate these risks.

The announcement follows the signing of the GENIUS Act by President Trump, which establishes a regulatory framework for the $250 billion stablecoin market, further integrating cryptocurrencies into mainstream finance.

PayPal's President and CEO, Alex Chriss, emphasized the service's potential to eliminate barriers in international commerce, allowing users from countries like Guatemala to shop with U.S. merchants.

Leveraging its 434 million active users and $1.68 trillion in annual transactions, PayPal aims to create a user-friendly ecosystem that stands out against competitors like Square and Stripe.

The integration with stablecoins and fiat conversion is expected to incentivize adoption by addressing concerns about cryptocurrency volatility.

The feature will support transactions from major crypto wallets like Coinbase, MetaMask, and Exodus, enhancing transaction speed and reducing fees for international purchases.

PayPal has launched a new service called 'Pay with Crypto', enabling US merchants to accept over 100 cryptocurrencies, including Bitcoin, Ethereum, and Solana, with near-instant conversions to fiat or stablecoins.

This initiative aims to simplify cross-border commerce, enhance profit margins for merchants, and lower transaction fees associated with international credit card processing.

For crypto payments, PayPal will charge a transaction fee of 0.99% until July 2026, significantly lower than standard credit card processing fees that typically range from 1.5% to 3.5%.

The rollout of this service is currently pending regulatory approval in New York, where merchants will need permission from the state's Department of Financial Services to participate.

The launch coincides with a recovery in crypto markets and a favorable regulatory environment under the Trump administration, indicating a renewed focus on innovation in the digital asset sector.