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PayPal (NASDAQ:PYPL) will “soon” integrate cryptocurrencies into its peer-to-peer payments system.
U.S. users will soon be able to send Bitcoin, Ethereum, PayPal USD and other supported cryptocurrencies across PayPal, Venmo and a growing list of cryptocurrency-supporting digital wallets worldwide, the firm said Monday.
The announcement came as the company announced a new P2P payments feature called PayPal links, which enables users to make or receive specified payments using one-time links that can be shared in conversations across messaging platforms. PayPal links is now available for U.S. users and will start rolling out to the U.K., Italy, and other markets later this month, the firm said.
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“For 25 years, PayPal has revolutionized how money moves between people. Now, we’re taking the next major step,” Diego Scotti, PayPal’s general manager, consumer group, said in a statement. “Whether you’re texting, messaging, or emailing, now your money follows your conversations.”
Scotti said PayPal links will work with PayPal World, the firm’s digital asset interoperability initiative. This means that PayPal links will be compatible with supported digital wallets beyond PayPal worldwide.
This infrastructure could make sending and receiving cryptocurrency payments much more convenient for users worldwide.
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For broader cryptocurrency users, the planned expansion of PayPal’s P2P service to support cryptocurrencies has the allure of being tax-free. Personal payments through PayPal and Venmo remain exempt from 1099-K reporting, the company said.
PayPal’s expansion of its P2P services comes as the firm reports an increase in volumes over the past year. The firm said P2P payment volumes increased 10% year-on-year in the second quarter. Venmo also saw its highest TPV growth in three years, PayPal said.
Before Monday’s announcement, PayPal already allowed users to trade several cryptocurrencies, including Bitcoin, Chainlink, Ethereum, PYUSD and Solana. In July, the firm launched Pay With Crypto, enabling businesses to accept payments in over 100 cryptocurrencies.
Read More: PayPal Expands Peer-to-Peer Payments With Bitcoin, Ethereum Integration –
