PayPal Adding Crypto to Peer-to-Peer Payments, Allowing Direct Transfer of BTC, ETH, Others

Payments firm PayPal (PYPL) said it is expanding its peer-to-peer service by adding cryptocurrency transfers to its payment flow, the company announced on Monday.

Users in the U.S. will soon be able to send bitcoin (BTC), ether (ETH), PayPal’s dollar stablecoin PYUSD and other digital assets across PayPal, Venmo and an increasing number of crypto-compatible wallets worldwide, the firm said in a Monday press release.

The integration arrives alongside “PayPal links,” a new tool that lets users generate a one-time personalized link to send or request money. The links can be dropped into text messages, chats or email, embedding payments into everyday conversations.

Personal transfers between friends and family will remain exempt from IRS 1099-K tax reporting requirements, meaning gifts, reimbursements and shared expenses won’t generate tax forms even if crypto is involved in the transaction, the firm said.

The company said the move builds on “PayPal World,” its new interoperability initiative aimed at connecting the largest digital wallets and payment systems. Peer-to-peer payments are a key growth driver, with consumer payment volume climbing 10% in the second quarter year-over-year. In July, the firm said to expand crypto payments for U.S. merchants as part of its deeper push into global digital currency payments.

Read more: PayPal Expands Crypto Payments for U.S. Merchants to Cut Cross-Border Fees