TLDR
- PayPal is adding cryptocurrency to its peer-to-peer payments in the US, allowing users to send Bitcoin, Ethereum, and PYUSD directly to friends and family
- The new “PayPal links” feature creates personalized one-time links that can be shared via text, email, or chat for easy money transfers
- Users can send crypto to both PayPal/Venmo users and external crypto wallets, bridging centralized and decentralized payments
- Personal crypto transfers between friends and family will not trigger IRS 1099-K tax reporting requirements
- The rollout starts in the US and will expand to the UK, Italy, and other international markets later this year
PayPal announced Monday it is adding cryptocurrency transfers to its peer-to-peer payment system. The feature allows US users to send Bitcoin, Ethereum, and PayPal’s PYUSD stablecoin directly to friends and family.
BREAKING: Financial giant PayPal to integrate Bitcoin and crypto into its platform for 450 million users. đ pic.twitter.com/9pi0uUsdB7
— Bitcoin Archive (@BTC_Archive) September 15, 2025
The payments giant, which serves over 400 million active accounts worldwide, is launching the service alongside PayPal links. This new tool generates personalized one-time links that users can share through text messages, email, or chat apps.
The crypto P2P feature works across PayPal and Venmo accounts. Users can also send digital assets to external crypto wallets that support these currencies.
PayPal emphasized that personal transfers between friends and family will remain exempt from IRS 1099-K tax reporting requirements. This means crypto gifts, reimbursements, and shared expenses won’t generate tax forms for users.
Expanding Beyond US Markets
The service will first launch in the United States before expanding internationally. PayPal plans to roll out the feature to the United Kingdom, Italy, and other markets later this year.
The company said supported cryptocurrencies include Bitcoin, Ethereum, and PYUSD. PayPal’s dollar-pegged stablecoin PYUSD has grown to nearly $1.3 billion in market capitalization.
Both PayPal links and crypto P2P payments fall under PayPal World. This is the company’s new framework designed to connect different wallets and payment systems across borders.
Consumer payment volume at PayPal climbed 10% in the second quarter compared to the previous year. Peer-to-peer payments represent a key growth area for the company.
Building on Crypto Payment Services
PayPal has steadily expanded its cryptocurrency offerings throughout 2025. Earlier this year, the company launched “Pay with Crypto,” a blockchain-based settlement service for US businesses.
The service allows merchants to accept payments in over 100 different cryptocurrencies. In April, PayPal added Chainlink and Solana to its Venmo and PayPal crypto options.
The new P2P feature allows users to send cryptocurrencies to external wallets. This capability aligns more closely with the original concept of peer-to-peer cryptocurrency transactions outlined in Bitcoin’s white paper.
Other companies are making similar moves in the crypto payments space. Kraken launched its Krak payments app in June, enabling cross-border digital asset transfers.
The World Bank has noted that stablecoin-based payment systems could reduce transaction costs by up to 92%. However, the Bank for International Settlements has expressed concerns about stablecoins functioning as true currency.
PayPal’s crypto P2P service represents the company’s continued push into digital currency payments. The feature bridges traditional centralized payment systems with decentralized cryptocurrency networks.
