PayPal Links Launch: Send Bitcoin and Ethereum Through Messaging
PayPal has introduced PayPal Links, a groundbreaking peer-to-peer payment system that effortlessly integrates cryptocurrency transfers directly into messaging platforms. This program, launched today for U.S. users sending dollars, will soon expand to support payments in Bitcoin, Ethereum, PayPal’s stablecoin PYUSD, and other tokens. This substantial shift towards mainstream crypto adoption positions PayPal as a leader in facilitating seamless digital asset transfers.
Revolutionary Messaging-Based Crypto Payments
By making payments this simple and universal, PayPal links helps drive new customer acquisition and brings more users into the PayPal ecosystem. The new service transforms how users interact with cryptocurrencies, eliminating the complexity traditionally associated with digital asset transfers.
How PayPal Links Works
PayPal Links generates one-time personalized links that enable secure cryptocurrency transfers through:
- Text messages
- Direct messages on social platforms
- Email communications
- Messaging apps
It will enable PayPal and Venmo users to conveniently exchange specific cryptocurrency tokens directly between their user accounts. Additionally, it will facilitate the sending of tokens to other cryptocurrency and stablecoin-compatible digital wallets. This interoperability marks a significant milestone in the widespread adoption of cryptocurrencies.
Supported Cryptocurrencies and Expansion Timeline
Current and Planned Digital Assets
PayPal Links will support multiple cryptocurrencies:
- Bitcoin (BTC) – The world’s largest cryptocurrency
- Ethereum (ETH) – Second-largest by market cap
- PYUSD – PayPal’s USD-pegged stablecoin with market cap reaching nearly $1.3 billion
- Additional tokens to be announced
PayPal currently supports in-app crypto purchases for Bitcoin, Ethereum, and PYUSD, as well as Solana, Chainlink, Litecoin, and Bitcoin Cash.
Global Rollout Strategy
The service launches in phases:
- United States – September 16, 2025 (USD transfers active)
- United Kingdom – Later September 2025
- Italy – Later September 2025
- Additional markets – Expansion continues throughout Q4 2025
Major Tax Advantages for Personal Transfers
1099-K Reporting Exemption
A crucial benefit for users involves tax implications. The company emphasized Monday that transfers of crypto between friends and families via PayPal and Venmo are exempt from 1099-K reporting, and won’t require additional tax forms. This exemption applies specifically to personal, non-commercial transactions.
The tax advantage addresses a significant barrier to crypto adoption, as many users previously worried about reporting requirements for peer-to-peer transfers.
Market Impact and Industry Context
PayPal’s Crypto Growth Strategy
PayPal witnessed a remarkable 10% growth in peer-to-peer payments during the second quarter of 2025. With over 400 million active users globally, the company holds immense potential for facilitating crypto adoption.
Earlier this year, the company introduced “Pay with Crypto,” a blockchain-based settlement service specifically designed for US businesses. As of now, PayPal has expanded its merchant services to serve over 20 million small businesses, providing them with convenient options to accept cryptocurrency payments.
Competitive Positioning
PayPal, with a market share of 19.4% in digital payments, is well-positioned to drive mainstream crypto adoption. Its established user base offers a significant advantage over crypto-native platforms.
Transaction Fees and Limits
The payment processor charges a competitive 0.99% fee for crypto transactions during the first year. Additionally, it offers a maximum weekly transfer amount of $25,000 for users in the US.
Technical Innovation and Security Features
Interoperability Breakthrough
Cryptocurrency transfers to external wallets represent a significant leap forward in interoperability for PayPal’s platform. Users can now send cryptocurrencies beyond the PayPal ecosystem to external wallets and exchanges.
Security Measures
One-time personalized links enhance transaction security while ensuring user convenience. These links prevent unauthorized access and streamline the payment process across various communication channels.
Market Trends Supporting Crypto Payments
Growing Merchant Adoption
Forty-six percent of surveyed merchants have integrated cryptocurrency payments into their accepted payment methods, with eighty-two percent attributing the primary reason for adoption to the elimination of middlemen. This trend aligns with PayPal’s strategic direction.
Global Crypto Ownership
In 2023, over 420 million people worldwide owned cryptocurrency, a significant increase from 300 million in 2021. This expanding user base presents substantial market opportunities for PayPal’s services.
Also read, Digital Asset Treasury Companies: Bitcoin, Ethereum & Solana Explained.
Key Takeaways
- PayPal Links enables cryptocurrency transfers through messaging platforms, launching September 2025 in the US
- Supports Bitcoin, Ethereum, PYUSD, and other digital assets with external wallet compatibility
- Personal crypto transfers between friends and family are exempt from 1099-K tax reporting requirements
- Service expands to UK, Italy, and additional markets later in September 2025 • PayPal’s 400+ million users and 19.4% digital payment market share position the company for significant crypto adoption impact
- Transaction fees start at 0.99% with $25,000 weekly transfer limits for US users
Frequently Asked Questions
A: Crypto functionality will launch “soon” after the September 16, 2025 USD rollout, with specific timing to be announced.
A: Initial support includes Bitcoin, Ethereum, and PYUSD, with additional tokens planned for future integration.
A: Personal transfers between friends and family are exempt from 1099-K reporting requirements, reducing tax compliance burden.
A: Yes, the service supports transfers to external crypto wallets and exchanges beyond the PayPal ecosystem.
A: PayPal charges 0.99% for crypto transactions during the first year, with a maximum weekly transfer limit of $25,000 in the US.
Christine Morgan is a senior staff writer and journalist at ReadBitz.com, where she brings clarity and context to the most pressing global events. As a leading voice on the daily news desk, she is dedicated to demystifying the complex web of international affairs, politics, and economics for a diverse global readership.