PayPal Launches “Pay With Crypto” for 100+ Coins, PYUSD Faces Regulatory Delay

Following the GENIUS Act, PayPal has launched its new “Pay With Crypto” feature, allowing U.S. merchants to accept over 100 cryptocurrencies including Bitcoin, Ethereum, XRP, and Solana. Users can pay via wallets like MetaMask, Binance, and Coinbase, while merchants receive USD or PYUSD instantly, with 0.99% fees for the first year.

This move aims to reduce cross-border payment costs and open access to global markets. PayPal CEO Alex Chriss emphasized the company’s vision to remove barriers for businesses of all sizes. The system also supports memecoins like TRUMP and FARTCOIN, using either centralized or decentralized exchanges for conversion.

However, PYUSD is facing regulatory challenges, especially in New York, where it lacks NYDFS approval. Additionally, neither PYUSD nor any other digital asset used in this service is FDIC or SIPC insured, posing potential risks to users.

The GENIUS Act has redefined the role of stablecoins, pushing them away from yield-bearing features and toward pure payment utilities. This could reshape stablecoin utility across the entire U.S. financial landscape.