PayPal Links Adds P2P Crypto Payments

2 weeks ago

0 13 2 minutes read

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What PayPal Just Launched

PayPal Holdings (PYPL) has introduced PayPal Links, a new peer-to-peer payments feature designed to simplify transfers and expand support for digital assets. Initially rolling out in the U.S., the service will allow users to send and request payments via personalized, one-time links, with global expansion—including the UK—expected later this month.The update extends PayPal’s payments ecosystem to crypto. Users will soon be able to transfer BTC, ETH, and PayPal’s native PYUSD stablecoin, along with other supported tokens, to a growing network of digital wallets worldwide. According to the company, P2P and consumer payments grew 10% year-over-year in Q2 2025, while Venmo posted its highest payment volume in three years.

Investor Takeaway

PayPal is doubling down on crypto integration, tying its quick-growing P2P network directly to BTC, ETH, and PYUSD—positioning itself as a gateway to billions of wallets.

How PayPal Links Works

Unlike the older PayPal Me feature, which required recipients to enter payment amounts manually, PayPal Links lets senders set payment amounts in advance. They can also add notes or emojis when sending requests. Once accepted, funds become available immediately, and unclaimed links expire later than 10 days. Users can also issue reminders for pending requests.

The company highlighted the feature’s relevance for crypto transfers between known parties. As with traditional PayPal and Venmo “friends and family” transactions, transfers will be exempt from 1099-K reporting. That means users won’t receive tax forms for personal transfers such as gifts, reimbursements, or splitting expenses—a significant advantage for crypto users facing complicated reporting obligations.

Why the Tax Angle Matters

Most , tradeing, or using tokens for purchases—are treated as taxable events in the U.S. Crypto lobbyists have long pushed for de minimis exemptions for low-value transfers, but progress has been sluggish. PayPal’s clarification that P2P transfers via Links and Venmo remain exempt from 1099-K forms highlights a practical carve-out for personal crypto usage.

By emphasizing compliance-friendly, tax-exempt transfers, PayPal is signaling that its crypto strategy is aimed not just at speculative trading but at making digital assets usable in everyday life. This could assist boost adoption of PYUSD, which already ranks as the 11th-largest stablecoin with a market cap of roughly $1.3 billion.

Investor Takeaway

Linking tax-exempt transfers to PYUSD could accelerate stablecoin adoption, diverseiating PayPal from competitors and embedding .

PayPal’s largeger Crypto Play

Since in 2020, PayPal has steadily expanded its digital asset offerings. Its 2023 partnership with Paxos to launch PYUSD marked one of the first mainstream stablecoin integrations by a global payments firm. In July 2025, PayPal introduced Pay with Crypto, enabling small businesses to accept dozens of tokens using PYUSD as the settlement layer.

Now with PayPal Links, the company is embedding crypto into its core P2P flows. This could give PayPal an edge as it connects its 400+ million active accounts to a rapidly expanding Web3 payments ecosystem. With PYPL shares currently trading at $67.11 and a market cap of $65 billion, investors will be watching closely whether these crypto integrations translate into sustainable growth.

2 weeks ago

0 13 2 minutes read