Can you pay with crypto on PayPal?

Yes, you can pay with crypto on PayPal, but how depends on where you are. US customers can spend crypto they hold in PayPal through Checkout with Crypto. Separately, PayPal's Pay with Crypto lets eligible shoppers outside the US pay US merchants from an external wallet. The merchant receives ordinary currency either way, as of October 2026.

Can you use crypto at checkout with PayPal in the US?

Yes, if you are a US customer with a PayPal Balance account. PayPal says crypto appears as a payment option in your PayPal wallet when your crypto balance covers the purchase, for select online purchases. The steps are:

1. Choose Checkout with PayPal and log in.
2. Select Crypto, review the terms and click Got It.
3. Check the exchange rate and click Sell.

PayPal says there are no extra transaction fees for this. You cannot split a purchase across several coins or combine crypto with another payment method, and you may have to wait for a bank payment to clear first. US users can also buy, hold, sell and send crypto inside PayPal, with a weekly transfer limit of $25,000.

How does PayPal Pay with Crypto work?

Pay with Crypto is a merchant product announced on July 28, 2025. At checkout, the buyer picks Pay with Crypto, is sent to PayPal, chooses a wallet or exchange, signs in and approves the payment. PayPal converts the crypto and settles the sale in the merchant's currency.

The launch release named Coinbase, OKX, Binance, Kraken, Phantom, MetaMask and Exodus as supported wallets, and more than 100 coins, including BTC, ETH, USDC and USDT. PayPal's help page says customers logged into US accounts cannot currently use it, and New York merchants cannot offer it.

What do crypto payments on PayPal mean for merchants?

Only verified US PayPal business accounts can accept Pay with Crypto. PayPal's launch release quoted a 0.99% transaction rate, valid until July 31, 2026, so check PayPal's current pricing. Refunds go back to the buyer in PayPal USD (PYUSD), or another supported stablecoin if the wallet lacks PYUSD. Crypto payments are irrevocable and cannot be disputed or charged back. For other options, see how businesses accept crypto payments.

Is paying with crypto on PayPal taxable?

PayPal's checkout feature works by selling your crypto, and the IRS treats selling a digital asset for dollars as a sale that can produce a capital gain or loss. PayPal says its information is not tax advice. More places to spend crypto are listed in where can you spend crypto.

Rules differ by country and change often. Check the tax authority or a qualified professional for your own situation.