PayPal (PYPL) announced Monday that it will allow merchants to accept cryptocurrency payments for goods and services, which could reduce transaction fees by up to 90%.
Through its Pay with Crypto service, businesses will gain instant conversion of crypto to stablecoins or fiat currencies. The feature supports more than 100 cryptocurrencies and integrates with major wallets such as Coinbase and MetaMask.
PayPal CEO Alex Chriss said the goal is to simplify cross-border payments and cut costs for businesses of all sizes.
“Businesses of all sizes face incredible pressure when growing globally, from increased costs for accepting international payments to complex integrations,” Chriss said.
“Today, we're removing these barriers and helping every business of every size achieve their goals."
In addition, PayPal recently unveiled PayPal World, a new payments ecosystem that will unite many of the world’s largest payment systems and digital wallets on a single platform.
The interoperable hub will initially connect PayPal and Venmo, with the service expected to launch this fall.
Strong earnings, but crickets on Wall Street
Despite pushing deeper into crypto, Wall Street isn’t impressed. PayPal’s stock dropped 8.7% Tuesday, even as the company beat all analyst estimates in Q2 earnings.
Revenue rose to $8.29 billion (+5.1% YoY, +6.4% QoQ), topping expectations by 2.3%. EPS reached $1.40, 8.5% ahead of forecasts. Gross margin improved to 42% and operating margin climbed to 19.8%.
Venmo, now PayPal’s fastest-growing segment, posted 20% growth. Meanwhile, PayPal raised its full-year EPS and transaction margin dollar guidance.
Yet despite the solid quarter, PayPal stock hasn't regained momentum. The stock is down 16.3% year-to-date and has cratered 61.3% over the past five years, even as rivals Apple Pay and Google Pay gain ground.
“Back in 2020, 2021 this was an amazing stock to trade and a great investment,” but today, it’s a ticker that “cannot get out of its own way,” said Danielle Shay, VP of options at Simpler Trade, speaking to Schwab Network.
She added that investor reaction may have been dampened by management’s warning that tariffs could slow e-commerce spending in the second half of the year. “Anytime executives are mentioning tariffs or slowing growth this quarter in particular, these companies are getting hit,” Shay said.
“Ultimately, when you look at the overall trend of this stock … this ticker has remained a relative strength loser for several years.”
Stocks to watch — And avoid? 📈$PYPL has so much baggage from 2020-2021, it would have to break through $95 before @traderDanielle would take it off her "Do Not Trade" list. ❌$MA and $V, on the other hand, have great long-term chart patterns.
undefined Simpler Trading (@simplertrading) July 29, 2025
Learn more from Danielle's… pic.twitter.com/bCzPewyP3f
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