PayPal Expands Peer-to-Peer Payments With Direct Crypto Transfers and One-Time Links

New P2P System to Integrate Bitcoin, Ethereum, PYUSD, and Global Rollout

PayPal unveiled a major expansion of its peer-to-peer payments system on September 15, 2025, introducing direct cryptocurrency transfers and a new product called PayPal Links. The update allows users in the United States to send Bitcoin, Ethereum, PayPal’s own PYUSD stablecoin, and other tokens directly between PayPal, Venmo, and external wallets that support crypto. The announcement marked what executives described as the company’s “next major step” after 25 years of reshaping digital payments, a move expected to influence both traditional finance and the broader coin market cap.

The PayPal Links feature introduces personalized, one-time payment or request links that can be shared across email, text, and direct messaging apps. Each link is tied to a specific transaction, is private, and cannot be reused. Links that go unclaimed expire after ten days, while senders retain the ability to cancel or issue reminders. When a recipient accepts a link through the PayPal app, the funds appear instantly for those holding a PayPal Balance account. The company emphasized that these payments will not trigger 1099-K tax reporting for personal transfers such as gifts, reimbursements, or shared expenses, even when crypto is involved, aiming to preserve what it calls the principle that “personal payments stay personal.”

Executives highlighted the strong growth behind the launch. Consumer P2P and other consumer total payment volume rose 10% year-over-year in the second quarter, with Venmo recording its highest total payment volume growth in three years. PayPal framed these figures as proof that peer-to-peer activity remains a cornerstone of its consumer strategy, helping drive engagement while onboarding new users into its ecosystem. The rollout begins immediately in the U.S., with plans to extend to the U.K., Italy, and other markets later in the month as part of what the company is calling its global “PayPal World” initiative, designed to connect leading digital wallets and payment systems to move money “as easily as sending a text.”

PYUSD, PayPal’s dollar-backed stablecoin, will play a central role in the new system. Issued by Paxos Trust Company, a fully chartered limited-purpose trust firm, the token is backed by U.S. dollar deposits, Treasuries, and cash equivalents. Available through PayPal and Venmo at a fixed rate of $1.00 per PYUSD, the stablecoin’s coin market cap has reached nearly $1.3 billion. This expansion reinforces its positioning as a tool for fast, programmable payments within the PayPal network and beyond.

Diego Scotti, PayPal’s General Manager of its Consumer Group, described the update as a continuation of the company’s mission to simplify money transfers globally. “For 25 years, PayPal has revolutionized how money moves between people. Now, we’re taking the next major step,” Scotti said, adding that whether users are texting, messaging, or emailing, their “money follows their conversations.” With the expansion, PayPal aims to make peer-to-peer crypto transfers a seamless part of everyday digital finance, setting new benchmarks for how crypto price index movements and digital currency adoption interact with mainstream platforms.

This article has been refined and enhanced by ChatGPT.