Fact Check: PayPal Crypto P2P Payments Now Support Bitcoin, Ethereum, and PYUSD

PayPal has officially launched crypto support in its peer-to-peer (P2P) payments system. The update allows U.S. users to send Bitcoin, Ethereum, and PYUSD directly through PayPal. Transfers can go to PayPal or Venmo accounts and even to external crypto wallets.

This fact check confirms that the update is real and active. It is not speculation or rumor. PayPal’s move represents one of the largest mainstream integrations of cryptocurrency into daily digital payments.

Fact Check on PayPal’s New Crypto P2P Payments

According to Reuters, PayPal rolled out “PayPal Links” alongside crypto transfers. A user can generate a one-time link and share it through text, email, or other apps. If the recipient does not claim the payment, the link expires. Senders can also cancel before the link is accepted. This makes transactions more secure and reduces errors.

Bitcoin, Ethereum, and PayPal’s own stablecoin PYUSD are included in the service. Users can send them across PayPal’s network or directly to outside wallets. With over 434 million users worldwide, PayPal’s adoption of crypto is significant. It gives mainstream exposure to digital assets at a scale few platforms can match.

The change also simplifies taxes for casual users. Personal transfers, whether in dollars or crypto, do not create 1099-K reports. This means sending small crypto payments will not generate extra paperwork. However, selling crypto for profit is still subject to U.S. capital gains tax rules.

Why PayPal’s Crypto Integration Matters

The global P2P payments market was valued at $3.2 trillion in 2023 and is growing more than 15 percent each year. PayPal controls about 30 percent of this market. Adding crypto gives the company an edge as digital money becomes more common.

Crypto payments are forecast to hit $6 billion by 2035. Almost half of merchants worldwide already accept some form of digital currency. PayPal’s PYUSD has reached a market cap of $1.35 billion, with daily volumes near $100 million. That scale shows real adoption.

International expansion is planned. The U.K. and Italy will gain access to PayPal Links later this month. PayPal’s network also connects to India’s UPI, Mercado Pago in Latin America, and Tenpay in China. This could give nearly two billion people access to crypto-enabled payments.

Security is a core part of the rollout. All transfers must pass KYC and AML checks. PayPal also uses AI for fraud detection and encrypts all links. Regulators want these protections, and users depend on them.

This fact check confirms that PayPal has added crypto to its P2P payments. Bitcoin, Ethereum, and PYUSD are now supported, marking a major step in global digital finance.

Dropping this nugget your way-

Q1: Does PayPal really support crypto P2P payments now?

Yes. U.S. users can send Bitcoin, Ethereum, and PYUSD through PayPal’s P2P payments. The feature is live and confirmed.

Q2: What is the role of PayPal Links?

PayPal Links allow one-time payments with a secure link. The link expires if unused and can be canceled by the sender.

Q3: Do PayPal crypto transfers create tax forms?

No. Personal transfers do not trigger 1099-K reports. But capital gains tax still applies if crypto is sold for profit.

Q4: When will PayPal expand crypto payments outside the U.S.?

The U.K. and Italy are next. Other markets will follow as regulations allow.

Q5: How does PayPal secure crypto P2P transfers?

PayPal uses encryption, AI fraud detection, and KYC/AML checks. This ensures safe and regulated payments.

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