PayPal to Integrate Crypto in New P2P Payment Flow

Highlights:

• PayPal to integrate crypto in P2P payments across PayPal, Venmo, and global wallets.
• PYUSD stablecoin strengthens PayPal’s digital payment ecosystem.
• PayPal Links expands global reach with personalized, one-time payment requests.

Fintech giant PayPal has announced a significant expansion of its peer-to-peer payment system. The company is soon going to allow US users to send Bitcoin, Ethereum, and PayPal USD (PYUSD) directly in the app. The launch represents a decisive step to make money transfers across apps, borders, and currencies simpler.

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PayPal to Integrate Crypto Into P2P Payment Experience

PayPal will have crypto integrated directly into its new peer-to-peer flow. This update will provide features for users that will allow them to send and receive Bitcoin, Ethereum, and PYUSD instantly. The feature is available across PayPal, Venmo, and an increasing number of worldwide digital wallets that support cryptocurrencies and stablecoins.

The integration places PayPal at the center of the modern money movement. Users will soon be able to send digital assets as easily as sending a text. Once accepted, the funds appear instantly and remain accessible through the recipient’s PayPal dashboard. PayPal stressed that transfers among family and friends do not fall under the 1099-K tax reporting. Personal transactions such as gifts, reimbursement, or splitting bills will not result in tax forms.

Launching today: PayPal links 🚀

Send and receive money as easily as sending a message–just share a one-time link by text, DM, or email.

Live now in the US, and more markets soon.

Coming next: crypto support for peer-to-peer via the PayPal app—including Bitcoin, Ethereum,… pic.twitter.com/H3ZDGUBGiS

— PayPal (@PayPal) September 15, 2025

Expanding Global Reach With PayPal Links

Alongside the crypto integration, PayPal launched PayPal Links. These one-time, personalized links are available for users to ask or send money in any conversation. Each link is private, expires in ten days if not claimed, and can be shared via email, text, or direct message.

U.S. customers can create links on PayPal today. Expansion to the UK, Italy, and other markets will start later this month. The company sees this as being a strong driver for user acquisition. By making payments simple and universal, PayPal is attracting new customers and strengthening engagement within its ecosystem.

In addition, the company reported robust growth in its P2P services in the second quarter. Consumer payment volume increased 10% year-over-year, while Venmo saw its greatest growth in three years. With the ability of PayPal World to allow for cross-platform interoperability, P2P payments will likely gain even more traction.

PYUSD and Pay With Crypto Shape Future Payments

PayPal USD (PYUSD), a stablecoin backed by U.S. Treasuries and cash reserves, will play a central role in the new system. PYUSD, issued by Paxos Trust Company, is pegged to the U.S. dollar at a ratio of 1:1. PYUSD has a market cap of $1.34 billion, with 0.46% of the total market allocated to the global stablecoin market, according to DeFiLlama. The addition of PYUSD to Bitcoin and Ethereum emphasizes the willingness of PayPal to consider digital assets as a means of regular payments.

This rollout follows PayPal’s prior move in July, where it launched “Pay with Crypto.” That feature enabled the merchants to accept more than 100 cryptocurrencies for settlements. This consequently marked a major step towards normalizing digital asset payments. Diego Scotti, PayPal General Manager of Consumer Group, emphasized the importance of the latest step.

He stated:

“Whether you’re texting, messaging or emailing, now your money follows your conversations.” Combined with PayPal World, it’s an unbeatable value proposition.”

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