PayPal Integrates Bitcoin in New P2P Crypto Feature

PayPal Integrates Bitcoin in New P2P Crypto Feature

PayPal has officially announced that it will begin integrating major cryptocurrencies — including Bitcoin (BTC), Ethereum (ETH), and its own stablecoin PYUSD — into its peer-to-peer (P2P) payments flow.

What’s Changing

“PayPal Links” is the new feature being rolled out. It allows users to generate one-time personalized payment links that can be shared via text, email or chat.

These payment Links are private, one-time use, and are tied to specific transactions. Unclaimed links will expire after 10 days.

The crypto integration means that users will be able to send/receive Bitcoin, Ethereum, and PYUSD as part of P2P transfers between PayPal, Venmo, and compatible external wallets.

Where & When

Launch begins in the United States, with expansion to the United Kingdom, Italy, and “other markets” later this month.

The crypto-P2P capability is being introduced under the umbrella of “PayPal World,” PayPal’s new interoperability initiative aiming to connect wallets and payment systems globally.

Cointelegraph

Key Details & Impacts

Transfers between friends and family (via PayPal or Venmo) will remain exempt from U.S. IRS 1099-K tax reporting, even when crypto is involved. That means splitting bills, sending gifts, and similar personal transfers will not automatically trigger tax paperwork.

The move is seen as increasing the utility of cryptocurrencies, moving them beyond just trading or investment, and toward everyday payments.

Why It Matters

This is a significant step toward mainstreaming crypto, especially BTC and ETH, by embedding them in familiar payment tools.

PayPal’s large user base (including via Venmo) means this could push P2P crypto usage considerably.

The tax exemption for “friends and family” transfers is important in reducing friction or worry for average users.