PayPal has officially announced that it will allow U.S. users to send and receive cryptocurrencies. Users will be able to transfer Bitcoin (BTC), Ethereum (ETH), and PayPal’s own stablecoin, PYUSD, via its peer-to-peer (P2P) payment flow. The upgrade is part of the company’s broader “PayPal World” initiative, which aims to move money more easily across apps, borders, and currencies.
“PayPal Links” one-time payment links
The new feature is called PayPal Links, which will let users generate a personalized, one-time payment or request link that can be shared via text, email, or messaging apps. These links are private, tied to a specific transaction, and if unclaimed, they expire after 10 days. Users also have flexibility as to when they can cancel a transaction or send reminders if needed.
The initial rollout will be enabled in the U.S., with international expansion to countries such as the U.K., Italy, and others anticipated later this month. Interestingly, the announcement also makes it clear that “friends and family” or personal transfers conducted via PayPal and Venmo will remain exempt from the U.S. Internal Revenue Service’s 1099-K tax reporting requirements. This means that gifts, reimbursements, or splitting bills won’t trigger tax forms even when crypto is involved.
P2P payments growing volumes
Details about fees for crypto P2P transfers (if any), how external wallet transfers will work in practice, and security or compliance specifics are not fully known yet. PayPal cites that peer-to-peer payments are already a core part of its consumer business, with total payment volume growing by 10% year-over-year in Q2. Venmo also had its highest P2P total payment volume growth in three years.
Under the “PayPal World” umbrella, this crypto P2P move is intended to further drive adoption of digital assets by integrating them more seamlessly into payments, and not for trading or investing.