PayPal announced that its U.S. users can now send Bitcoin, Ethereum, PYUSD, and other crypto assets to PayPal, Venmo, and a growing number of digital wallets worldwide.
The new feature is part of PayPal Links, a personalised way to send and receive payments through a single shareable link. The launch is aimed at making peer-to-peer transfers faster, more universal, and easier for everyday users.
New P2P flow
The company said the latest integration brings crypto into PayPal’s new peer-to-peer payment system. This means users can move digital assets directly within the app and send them to friends and family across wallets that support stablecoins and major cryptocurrencies.
PayPal stressed that personal transfers remain tax-free. Friends-and-family payments sent through PayPal and Venmo will continue to be exempt from 1099-K reporting.
The company said this ensures that gifts, reimbursements, and shared expenses will not trigger unwanted tax forms.
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Personalized links
Alongside crypto transfers, PayPal introduced PayPal Links, which let users create a one-time, personalised link to request or send money. The link can be shared across text messages, chat apps, or emails, allowing payments to follow everyday conversations.
U.S. customers can already set up links, with international expansion planned for later this month. The feature will first roll out to the UK and Italy before expanding further.
PayPal said the links are designed to boost new user sign-ups and make its payment system more accessible in more markets.
Company statement
Diego Scotti, General Manager of the Consumer Group at PayPal, said the launch represents a new chapter in the company’s journey. He pointed out that PayPal has transformed money movement for 25 years and is now connecting payments to conversations.
Scotti said PayPal World, combined with PayPal Links, is positioned as a strong proposition for both consumers and businesses.
Growth momentum
PayPal said peer-to-peer payments remain central to its consumer strategy. In the second quarter, overall consumer payment volume grew 10% year-over-year, while Venmo recorded its strongest growth in 3 years.
The company expects PayPal World, which connects major digital payment systems globally, to give P2P even greater momentum by linking billions of wallets across different countries.
This wider connectivity is expected to make it easier for users to discover and use PayPal and Venmo as the default tools for digital payments. The integration of crypto into this flow underscores PayPal’s broader goal of combining traditional and digital finance seamlessly.
PYUSD expansion
The update also comes on the heels of the expansion of PayPal’s PYUSD stablecoin. On the heels of the recent launch of the company on Ethereum and Solana, it recently announced plans to add PYUSD on the Arbitrum blockchain.
This reflects PayPal’s intention to further entrench itself in the DeFi space by expanding the range of the stablecoin’s ecosystem.
PayPal’s intersection with conventional payment systems and blockchain has been further deepened with the addition of crypto transfers, tailored payment links, and the expanding stablecoin use cases.
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