Short answer: yes, you can use crypto to pay at checkout through PayPal — but “Pay with Crypto” is easy to mix up with an older, similar-sounding feature. PayPal actually runs two different crypto-checkout tools, and which one you use depends on whether you hold crypto inside PayPal or in an outside wallet like Coinbase or MetaMask. This guide untangles both, lists the supported coins, and shows the real fees with worked examples.
Two features, one confusing name
Before you do anything, it helps to know which product you’re dealing with:
- Checkout with Crypto — the consumer feature PayPal launched back in 2021. You spend crypto you already hold inside your PayPal account. PayPal instantly sells it for U.S. dollars and pays the merchant in dollars.
- Pay with Crypto — a newer merchant product PayPal announced on July 28, 2025. It lets U.S. businesses accept 100+ cryptocurrencies from shoppers paying out of their own external wallets, then settles to the merchant in fiat or PayPal USD (PYUSD).
So if you’re a shopper who bought Bitcoin on PayPal, you’ll use Checkout with Crypto. If a store advertises “Pay with Crypto” at checkout, you can connect an outside wallet and pay directly from it. Both end the same way: the merchant receives regular dollars, not coins.
Which coins can you actually spend?
The list depends on the feature.
| Feature | Coins you can pay with | Where your crypto lives |
|---|---|---|
| Checkout with Crypto (spend from PayPal balance) | Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH); PayPal also supports PYUSD and has added assets like Solana and Chainlink for buy/hold | Inside your PayPal crypto hub |
| Pay with Crypto (merchant acceptance) | 100+ assets including BTC, ETH, USDT, USDC, XRP, BNB, SOL and PYUSD | External wallet (Coinbase, MetaMask, Binance, Kraken, Phantom, Exodus, OKX) |
A key rule for the consumer feature: you can only use one cryptocurrency per transaction, and you need enough of that single coin to cover the full purchase.
How Checkout with Crypto works (spending from PayPal)
This is the path most everyday shoppers take. You need a PayPal Balance account, and it’s available to U.S. customers only.
- Add PayPal as your payment method at a participating online store, or choose PayPal at checkout.
- If you hold eligible crypto worth enough to cover the order, “Crypto” appears as a funding option alongside your bank and cards.
- Select the coin you want to use (only coins with a sufficient balance will show).
- PayPal displays the exchange rate and the dollar amount it will sell. Review it and confirm.
- PayPal sells that crypto for USD and pays the merchant in dollars. The store never touches crypto.
Because you’re locking in the rate before you confirm, you get certainty of value at the moment of purchase.
What it costs
PayPal charges no separate transaction fee to check out with crypto. However, a currency conversion spread is baked into the crypto-to-USD price — meaning the rate you’re offered is slightly worse than the raw market mid-price. That spread is how PayPal earns on the sale, so it’s not “free,” just fee-free in the sense of no line-item charge.
Worked example
Say you want to buy a $120 pair of shoes and you hold Bitcoin in PayPal. At checkout you pick Bitcoin, PayPal shows it will sell roughly $120 worth of BTC at its quoted rate, you confirm, and the store gets $120. There’s no add-on fee, but the BTC price you’re quoted already includes the spread — so it may cost marginally more BTC than the same dollars would at a raw exchange rate.
How Pay with Crypto works (paying a merchant from an outside wallet)
This is the 2025 merchant-facing product. When a U.S. business turns it on, shoppers — including those outside the U.S. — can pay from their own wallet without pre-loading funds into PayPal.
- At a participating merchant, choose the crypto/”Pay with Crypto” option.
- Connect a supported wallet such as Coinbase, MetaMask, Binance, Kraken, Phantom, Exodus or OKX.
- Approve the payment in your wallet using any of the 100+ supported assets.
- PayPal converts the crypto and settles to the merchant in their local fiat currency or in PYUSD, typically within minutes.
Merchant fees (why businesses like it)
PayPal set an introductory transaction fee of 0.99% that applies through July 31, 2026, after which it’s expected to rise (reported around 1.5%). PayPal pitches this as up to ~90% cheaper than typical cross-border card rates, which is the main draw for merchants selling internationally. As a shopper, you don’t pay that merchant fee directly — but your wallet or network may charge its own gas/withdrawal fees, so check before confirming.
| Detail | Checkout with Crypto | Pay with Crypto |
|---|---|---|
| Who it’s for | Shoppers | Merchants (shoppers pay in) |
| Fee to you | No transaction fee; spread applies | Merchant pays 0.99% (intro, until 7/31/2026) |
| Funds source | Crypto held in PayPal | Your external wallet |
| Availability | U.S. customers | U.S. merchants; global shoppers |
| Merchant receives | USD | Local fiat or PYUSD |
Things to watch before you pay
- Selling crypto is a taxable event. Spending BTC through Checkout with Crypto counts as selling it, which can trigger a capital gain or loss you’ll report at tax time.
- Recently bought crypto with a bank transfer? PayPal may require several days for the payment to clear before those funds are usable at checkout.
- Rates move fast. The quote you accept is a snapshot; confirm promptly so the price doesn’t change under you.
- Spread ≠ free. “No fee” refers to no separate charge, not a zero cost — the conversion spread is real.
Frequently Asked Questions
Can I pay with Bitcoin directly at any online store using PayPal?
You can pay with Bitcoin at any store that accepts PayPal if you hold BTC inside PayPal and Checkout with Crypto shows up as an option (U.S. accounts only). The store itself doesn’t need to support crypto — PayPal converts your Bitcoin to dollars behind the scenes and pays the merchant in USD.
Does PayPal charge a fee to check out with crypto?
There’s no separate transaction fee for Checkout with Crypto, but a conversion spread is built into the crypto-to-USD rate you’re shown. For the merchant “Pay with Crypto” product, the business pays an introductory 0.99% fee through July 31, 2026 — not you.
Which cryptocurrencies can I spend at checkout?
From your PayPal balance, the classic checkout-eligible coins are Bitcoin, Ethereum, Litecoin and Bitcoin Cash, plus PayPal USD. Through a merchant’s “Pay with Crypto” option, you can pay from an external wallet using 100+ assets including USDT, USDC, XRP, BNB and Solana.
Can I use crypto held in Coinbase or MetaMask with PayPal?
Only through a merchant that has enabled “Pay with Crypto.” In that flow you connect a supported wallet — such as Coinbase, MetaMask, Binance, Kraken, Phantom, Exodus or OKX — and pay directly. Checkout with Crypto, by contrast, only spends crypto held inside PayPal.
Bottom line
Yes — you can spend Bitcoin and other crypto at checkout with PayPal. If your coins sit inside PayPal, use Checkout with Crypto: pick a coin, lock in the rate, and the merchant gets dollars. If a store offers Pay with Crypto, you can connect an outside wallet and pay from 100+ assets. Just remember the conversion spread, possible network fees, and that spending crypto can create a taxable event.
WalletWisp is informational and not financial advice. Verify current fees, coins, and limits with PayPal before you transact.
