PayPal Accelerates Crypto Adoption with Direct Transfers Through PayPal, Venmo, and Compatible Wallets
Integrated Crypto Transfers in Everyday Life at PayPal
PayPal confirmed that its American users can now send Bitcoin, Ether, their stablecoin PYUSD, and other cryptocurrencies directly through PayPal, Venmo, and a growing number of compatible wallets. This advancement solidifies the company’s role in global crypto payments adoption.
An individual can now send ETH to a friend on Venmo as easily as a regular transfer through the new “PayPal links” feature. This function lets users generate a personalized link to request or send money, designed to seamlessly integrate into WhatsApp, text messages, or emails. Essentially, PayPal is integrating crypto where daily exchanges already occur.
No Tax Paperwork for Small Transfers
The announcement also has significant tax implications. PayPal specifies that personal transfers, gifts, reimbursements, or shared expenses will remain outside the IRS’s reporting requirements. No need to fill out a 1099-K form for these transactions among acquaintances, even when involving Bitcoin or Ether. This provides relief for users handling digital assets without the fear of administrative burdens.
A Strategy Named “PayPal World”
This move is part of a larger plan dubbed “PayPal World,” an interoperability initiative aiming to connect major digital wallets and payment systems. The goal is to enable cryptocurrencies to flow as freely as traditional currencies among millions of users. With a 10% growth in P2P payment volumes in the second quarter, PayPal is counting on crypto to strengthen this growth engine.
Towards a New Global Ecosystem
The company’s reach extends beyond peer-to-peer transfers. Last July, it announced the expansion of crypto payments for American merchants, affirming its ambition to become a key player in the global use of digital currencies. For investors and observers, this shift demonstrates that payment giants now view crypto not as a marginal option but as an essential component of the future of transactions.
With Bitcoin hovering around $115,000 in September 2025, PayPal’s timing is strategic. The direct integration of digital assets into its services could turn millions of users into daily participants in the crypto economy. In this global race, PayPal seems poised to take the lead.
