PayPal Launches Crypto Transfers and P2P Payment Links in Major Expansion Push
PayPal is expanding its crypto offerings by allowing users to send and receive digital assets—including Bitcoin (BTC), Ethereum (ETH), and its own stablecoin PYUSD—through peer-to-peer (P2P) payments. The move marks a major step in bringing cryptocurrency utility into everyday financial transactions.
Announced Monday, the payments giant unveiled PayPal Links, a new feature that lets users generate one-time, personalized payment links to share via text, email, or chat. The feature is launching first in the U.S., with plans to roll out in the U.K., Italy, and other global markets later this year.
Alongside PayPal Links, users can now send and receive crypto directly through PayPal and Venmo, including transfers to external wallets—bridging the gap between centralized platforms and blockchain-based payment systems. Supported digital assets at launch include Bitcoin, Ether, and PYUSD, with more expected to follow.
Crypto P2P Payments, No 1099-Ks for Friends and Family
PayPal clarified that personal crypto transfers—such as those made between friends and family—will not trigger 1099-K tax reporting, aligning with IRS rules that exempt such transactions from reporting requirements.
This new functionality is part of PayPal World, the company’s broader initiative aimed at connecting digital wallets and payment systems globally, supporting greater interoperability across platforms and borders.
From Investment to Everyday Use
While PayPal has steadily expanded into digital assets over the past two years—including its “Pay with Crypto” feature and support for assets like Chainlink and Solana—the new P2P capability brings cryptocurrency into a more practical, everyday context.
“Peer-to-peer payments are one of the original promises of cryptocurrency,” PayPal said in the announcement, referencing the decentralized ethos outlined in Satoshi Nakamoto’s 2008 Bitcoin white paper. By enabling crypto transfers to both internal and external wallets, PayPal is moving closer to that vision—despite being a centralized payment processor.
PYUSD on the Rise
PayPal’s stablecoin PYUSD has seen growing adoption, with its market cap approaching $1.3 billion, according to CoinMarketCap. The company sees stablecoins as a key component in reducing global transaction costs and expanding access to financial services—especially in cross-border payments and remittances.
Bigger Picture: A Growing Trend
PayPal is not alone in this shift. In June, Kraken launched Krak, a crypto payments app allowing cross-border asset transfers. Meanwhile, the World Bank has reported that stablecoins could reduce remittance fees by up to 92%, though some regulators remain skeptical.
The Bank for International Settlements (BIS) recently warned that stablecoins fall short of key monetary standards, saying they behave more like financial assets than true currencies.
Still, PayPal’s latest move reflects a growing trend toward integrating crypto into everyday payments—one that could drive broader adoption beyond trading and speculation.
Featured image from: cointelegraph.com