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Key Takeaways
Crypto Added to P2P Payments – PayPal lets users send and receive Bitcoin (BTC), Ether (ETH), and its stablecoin PYUSD directly through its peer-to-peer payment system on PayPal and Venmo.
Launch of PayPal Links – A new feature generates one-time personalised links that can be shared via text, email, or chat, making requesting or sending payments, including crypto, easier.
Global Expansion Ahead – The rollout begins in the US and will extend to the United Kingdom, Italy, and other international markets in 2025.
PayPal, which boasts hundreds of millions of active users globally, is enhancing its peer-to-peer (P2P) payments capabilities by supporting cryptocurrencies.
Overview
On September 15 2025, the company introduced PayPal Links, a unique, single-use link created within the PayPal app that users can share via text, email, or chat. The service will debut in the United States (US) and is set to roll out to the United Kingdom (UK), Italy, and additional global markets later this year. Under the new update, US users can send and receive Bitcoin (BTC), Ether (ETH), and PayPal’s stablecoin, PYUSD, via their P2P flow.
These features will operate across PayPal, Venmo, and
“compatible”
external wallets that support crypto assets. One of the new tools introduced is
“PayPal Links”
, a one‐time personalised link that can be shared via text, email or chat. Through this link, recipients can request or receive payments, including crypto. This is designed to make sending a payment as simple as sending a message.
The Rationale & Tax Implications
This move aligns with PayPal’s broader strategy to make cryptocurrencies more functional, turning them beyond investment vehicles into everyday payment tools. Including PYUSD—a stablecoin pegged to the US dollar—helps address concerns over volatility.
Another key aspect is the tax reporting piece. PayPal has said friends-and-family or person-to-person transfers via PayPal or Venmo, including those using crypto,
won’t trigger IRS Form 1099-K
reporting. That means gifts, reimbursements or shared expenses remain tax-free (or at least non-reportable under that specific US rule) under the current regulatory framework.
How This Fits Into PayPal’s Global & Competitive Strategy
This rollout is happening first in the US, with plans to expand later in the year to markets including the United Kingdom, Italy, and others. The feature forms part of a broader initiative that PayPal refers to as
“PayPal World”
, which aims to improve interoperability across payment systems and digital wallets globally.
From a competition standpoint, PayPal is positioning itself to stay relevant in a financial world where peer-to-peer payments, remittances, and cross-border money movement are increasingly looking toward crypto and stablecoin rails. Other platforms, exchanges, or apps that support wallet-to-wallet crypto transfers may gain ground if they are more nimble. Still, PayPal’s advantage is its large user base, established trust, and regulatory footprint.