Table of Contents
PayPal Pay with Crypto lets verified US merchants take roughly 100 cryptocurrencies (including PYUSD, USDC, and USDT) from global buyers, then settle USD into the PayPal balance without holding the asset.
As of September 2026 PayPal pricing, the promotional rate is 0.99% of the transaction through 31 July 2026, then the standard 1.5% rate. That lands next to Stripe Checkout Crypto's 1.5% all-in fee once the promo ends.
This guide covers Dashboard enablement, the Orders V2 create-and-redirect path, PYUSD refunds, fee benchmarks, and when to skip Pay with Crypto for Stripe, a Bridge VA, or a self-custody invoice.
For Stripe's wallet checkout, see how to accept stablecoin payments on Stripe. For a wallet you control, see how to accept USDC payments.
Key Takeaways
- Enable Crypto under Payment Methods after Expanded Checkout approval on a verified US Business account.
- Fee is 0.99% through 31 July 2026, then 1.5%; PYUSD buy/sell/hold/send inside PayPal is 0%.
- POST /v2/checkout/orders with intent CAPTURE, processing_instruction ORDER_COMPLETE_ON_PAYMENT_APPROVAL, and payment_source.crypto.
- Refunds land as PYUSD (or another supported stablecoin) in the buyer wallet; disputes and chargebacks are not supported.
- New York merchants are excluded; gambling/gaming needs PayPal due diligence before enablement.
What PayPal Pay with Crypto actually is
Pay with Crypto is a redirect payment method on PayPal Expanded Checkout. The buyer picks a third-party or self-hosted wallet, PayPal converts the crypto to USD in seconds, and you receive local-currency settlement on PayPal's normal merchant funding schedule.
You do not hold BTC, ETH, or PYUSD as the merchant. PayPal's help center states merchants cannot accept crypto directly into inventory; conversion to USD payment is the product.
PYUSD (PayPal USD) is the refund rail and a supported payer asset. Issuance and custody of PYUSD are performed by Paxos Trust Company, N.A., per PayPal's public PYUSD and business pages (as of September 2026).
Who this is for (and who should skip it)
Use Pay with Crypto when you already run PayPal Checkout in the US, want global crypto payers without building custody, and can price an irrevocable payment into support policy.
Skip it when the merchant is in New York, you need recurring billing or vaulted payments, you need card-style chargebacks, or the payer should deposit local fiat that mints USDC into a wallet you name. Those jobs map to Stripe Checkout Crypto, a Bridge virtual account, or stablecoin invoicing.
Enable checklist (2026)
1. Confirm US Business eligibility
You need a verified US PayPal Business account. Developer docs last updated 11 August 2026 list US merchants only, with global buyers and a $0.01 USD minimum.
If you sell gambling or gaming, complete PayPal's due diligence before enablement. New York merchants are blocked per PayPal's Pay with Crypto help article.
2. Apply for Expanded Checkout and turn on Crypto
In Account Settings → Payment Methods, locate Crypto and click Get started. Merchants must apply and be approved for Expanded Checkout; PayPal then checks that required business information is present.
Integration requirements from PayPal help: approved checkout account, Crypto request in Payment Methods, business information accepted, and a completed Orders V2 integration.
3. Create the order on Orders V2
When the buyer selects Pay with Crypto, POST /v2/checkout/orders with a unique PayPal-Request-Id header so retries do not double-create.
Required fields from PayPal's Orders crypto guide: intent=CAPTURE, processing_instruction=ORDER_COMPLETE_ON_PAYMENT_APPROVAL, purchase_units.amount.currency_code=USD (USD only), and payment_source.crypto with country_code=US, buyer given_name / surname, plus return_url and cancel_url.
Redirect the buyer to the payer-action link in the create response. Listen for PAYMENT.CAPTURE.COMPLETED before you fulfill. Auth-and-capture is not supported; capture is immediate on approval.
4. Run a small live test and document refunds
Send a sub-$25 test with a supported wallet asset (PYUSD or USDC are the cleanest for finance ops). Confirm USD credit to the PayPal balance and that fulfillment waits on the capture webhook, not the redirect alone.
Once you approve a refund, PayPal issues PYUSD into the buyer's wallet (or another supported stablecoin if that wallet cannot take PYUSD). Tell support that path before go-live.
Fees and rails compared (as of September 2026)
| Method | Fee / rate | Who settles | Refund rail | Disputes |
|---|---|---|---|---|
| PayPal Pay with Crypto | 0.99% through 31 Jul 2026; 1.5% after | USD to PayPal balance (merchant never holds crypto) | PYUSD (or alt stablecoin) to buyer wallet | No (irrevocable) |
| Stripe Checkout Crypto (benchmark) | 1.5% of USD amount all-in | Stripe balance in local currency | Stablecoins to original wallet | No |
| Domestic cards on Stripe (benchmark) | 2.9% + $0.30 | Stripe balance | Card credit path | Yes |
| PYUSD inside PayPal wallet | 0% to buy, sell, hold, or send to eligible PayPal users | PayPal / Paxos PYUSD | N/A (wallet asset) | N/A |
Primary sources: PayPal accept crypto payments, PayPal developer Accept crypto, and Pay with Crypto help. PayPal also claims an ~85% fee cut versus its own international card processing with FX as of 18 December 2025; treat that as a PayPal marketing comparison, not a universal card rate.
How this differs from Stripe Crypto and Bridge VAs
Pay with Crypto settles to PayPal balance after a PayPal-hosted wallet redirect. Stripe Checkout Crypto settles to Stripe balance after crypto.stripe.com, with a $10,000 per-transaction cap Stripe documents for that method.
A Bridge virtual account is payer-fiat local rails (ACH, wire, SEPA, SPEI, PIX) into USDC you name. If finance wants deposit instructions that mint into a wallet, stay on Bridge VAs. If product wants a Crypto button next to PayPal Checkout, stay on Pay with Crypto.
Operational pitfalls
Assuming New York is live. PayPal's help article excludes NY merchants today. A greyed-out Crypto toggle is eligibility, not a Dashboard bug.
Building recurring on Pay with Crypto. Billing agreements, recurring, vaulting, multi-seller, and authorization/capture are unsupported. Keep subscriptions on cards or another PayPal method.
Expecting chargebacks. Crypto payments are irrevocable and not subject to disputes. Price refunds and wallet evidence into high-risk SKUs.
Confusing merchant acceptance with holding PYUSD. Merchants settle in USD. PYUSD is the refund (and a payer) asset issued via Paxos. For who actually issues branded dollars, see who actually issues a white-label stablecoin.
Related playbooks
Human wallet checkout on Stripe: how to accept stablecoin payments on Stripe.
Self-custody USDC receive: how to accept USDC payments and how to invoice in stablecoins.
FAQ
How do I enable PayPal Pay with Crypto?
Apply for Expanded Checkout on a verified US Business account, then enable Crypto under Payment Methods and integrate Orders V2 with payment_source.crypto.
What is the Pay with Crypto fee in 2026?
PayPal lists 0.99% through 31 July 2026, then a standard 1.5% rate. PYUSD buy/sell/hold/send inside PayPal is 0% and is a separate wallet fee table.
Do merchants receive PYUSD or USD?
Merchants settle in local currency (USD for US accounts) to the PayPal balance. PayPal converts crypto on payment; you do not hold the buyer's asset.
How do Pay with Crypto refunds work?
Approved refunds issue PYUSD into the buyer's wallet, or another supported stablecoin if that wallet cannot take PYUSD.
Can New York merchants use Pay with Crypto?
No. PayPal's help center states New York merchants cannot currently use Pay with Crypto.
Should I use PayPal Pay with Crypto or Stripe Checkout Crypto?
Use PayPal when checkout already runs on PayPal and you want PayPal-balance settlement. Use Stripe when Checkout/Elements is the stack and you accept Stripe's $10k per-tx Crypto cap.
Why are there no chargebacks on Pay with Crypto?
PayPal documents crypto payments as irrevocable and not subject to disputes or chargebacks. Build refund policy instead of chargeback policy.
Next step
Confirm you are not a New York merchant, request Expanded Checkout plus Crypto in Payment Methods, create one Orders V2 CAPTURE test with payment_source.crypto, and verify the PYUSD refund path on a sub-$25 capture before you promise the method on high-ticket SKUs.
Need local fiat rails that land USDC instead of PayPal-balance settle?
This content is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice; no material herein should be interpreted as a recommendation, endorsement, or solicitation to buy or sell any financial instrument, and readers should conduct their own independent research or consult a qualified professional.
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