PayPal has expanded its cryptocurrency services to U.S. business account holders, allowing them to buy, hold, and sell digital assets directly through their accounts. However, businesses located in New York will not have access to these new features at launch. This move is part of PayPal’s response to the growing demand for cryptocurrency solutions in business operations.
Onchain Transfers for Business Accounts
One of the key aspects of the new service is the ability for U.S. business account holders to transfer cryptocurrency on-chain to third-party wallets. This feature enables merchants to send and receive crypto through external blockchain addresses, streamlining digital asset management.
The introduction of these crypto tools reflects PayPal’s continued efforts to integrate digital currencies into everyday business use. Since allowing consumer-level crypto transactions in 2020, the company has been gradually broadening its crypto capabilities, including launching its own stablecoin, PayPal USD (PYUSD), in 2023. PYUSD is backed by U.S. dollar reserves and can be used for international transfers on platforms like Xoom, which is owned by PayPal. Recently, PYUSD was enabled on the Solana blockchain to support a wider range of networks.
Partnerships and Future Expansion
In recent developments, PayPal has forged partnerships with other major players in the crypto industry. Last month, PayPal collaborated with Crypto.com to allow seamless cryptocurrency purchases by linking users’ PayPal accounts with Crypto.com wallets. This feature is expected to expand to markets outside the U.S. in the near future.
Additionally, PayPal has teamed up with MoonPay to launch a crypto purchasing option for app users in the U.S., offering transactions through PayPal, bank transfers, and debit cards. This collaboration is seen as an important step toward the broader adoption of cryptocurrencies by bridging traditional finance with the digital asset space.
Looking ahead, PayPal is also working to expand its crypto services internationally, having secured approval from the Financial Conduct Authority (FCA) to offer digital asset services in the United Kingdom.
