Paypal Expands Its P2P Crypto Payments! Here is How

PayPal has announced a major expansion of its peer to peer payments, introducing PayPal Links that will soon support cryptocurrency transactions. 

With this update, users will be able to send and receive Bitcoin, Ethereum, and PayPal’s native PYUSD stablecoin seamlessly across PayPal, Venmo, and eventually a growing network of compatible wallets.

This upgrade marks another milestone for PayPal, which has been integrating crypto services since 2020. Now, the company is taking a step closer to mainstream adoption by making crypto transfers as simple as sharing a payment link.

Read Also: PayPal Launches Stablecoin on Stellar Network

Key Takeaways

• PayPal Links let users send and request payments using personalized, one time links.
• Crypto support is rolling out in the U.S., with Bitcoin, Ethereum, and PYUSD as the first supported assets.
• Friends and family transfers remain exempt from 1099-K tax forms, helping keep personal payments private.
• PayPal will expand the service globally, starting with the UK and other markets later this month.
• PYUSD continues to grow as a stablecoin, now valued at over $1.3 billion, powering both merchant and consumer payments.

What Is PayPal Links?

PayPal Links is a new feature that allows users to create simple payment requests through personalized URLs. Unlike the older PayPal Me system, PayPal Links let senders prefill the payment amount and attach notes. Once the recipient accepts, funds are transferred instantly.

The links also have a built in safety feature. If they remain unclaimed after 10 days, they expire automatically. Users can send reminders if requests go unanswered, making the system more practical for everyday use.

How Crypto Fits Into PayPal Links

In the coming weeks, PayPal will add support for crypto transfers. This means U.S. users will be able to send Bitcoin, Ethereum, and PYUSD stablecoin via PayPal Links. The transfers will work across PayPal and Venmo, and eventually extend to external wallets, bridging PayPal’s ecosystem with the wider crypto economy.

For non technical users, this simplifies what is often the most confusing part of crypto: wallet addresses. Instead of copying long strings of characters, users can send or receive crypto through a simple link.

The Tax Angle

A major advantage of PayPal’s peer to peer feature is that friends and family transfers remain tax form exempt. PayPal confirmed that users will not receive 1099-K forms for personal transfers, such as gifts, reimbursements, or splitting expenses. While individuals remain responsible for following tax laws in their jurisdictions, this exemption helps ensure that small, everyday payments stay hassle free.

Why PYUSD Matters

Launched in 2023 with Paxos, PYUSD has become a central pillar of PayPal’s crypto strategy. It already powers the “Pay with Crypto” feature for merchants, and now, through PayPal Links, it is set to play a larger role in peer to peer transfers.

With a market capitalization of over $1.3 billion, PYUSD provides liquidity and stability, making it easier for users to transact without worrying about volatility.

Global Rollout Plans

The initial launch of PayPal Links with crypto starts in the United States. Expansion to the United Kingdom and other international markets is planned for later this month. Over time, PayPal aims to connect billions of wallets worldwide, further cementing its role as one of the most crypto friendly fintech companies.

Final Thoughts

PayPal’s expansion of peer to peer payments into crypto is more than just a new feature. It represents a bridge between traditional finance and blockchain networks. By simplifying crypto transfers with easy to use links, PayPal is helping lower barriers for mainstream users while giving its stablecoin PYUSD more utility.

As adoption grows, this move could significantly increase crypto’s role in everyday payments, making Bitcoin, Ethereum, and stablecoins as common to send as fiat.

Read Also: RLUSD vs. USDT, USDC, and PayPal

FAQ

What is PayPal Links?

It is a new feature that lets users send and request money through personalized payment links. Senders can set amounts, add notes, and share the link with recipients.

Which cryptocurrencies are supported?

The first supported assets will be Bitcoin, Ethereum, and PayPal’s PYUSD stablecoin.

Are PayPal crypto transfers taxable?

Personal transfers like gifts and reimbursements are not reported on 1099-K forms. However, commercial transactions and crypto sales remain taxable events.

Where is the feature available?

The service is launching in the U.S. first, with global expansion to the UK and other regions later this month.

What role does PYUSD play?

PYUSD acts as PayPal’s stablecoin and settlement asset. It is used for merchant payments and now expands into P2P transfers, strengthening PayPal’s crypto ecosystem.