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PayPal and Crypto: Buy, Receive, Send, and Transfer Crypto with PayPal | Notum

By Notum

Jun 21, 20226 min read


PayPal has been a leader in the field of digital payments for more than 20 years. The platform allows over 350 million consumers to join the global economy. The demand for the service is also increased by the “Buyer Protection” program. The option protects users if the product is not received or does not match the declared one. The service reimburses expenses, including shipping costs.

The development of the digital asset market has contributed to the emergence of a new feature on the platform. The mobile and online payment system allows users to buy, sell, transfer, and hold coins. PayPal protects the relevant transactions from fraud. To date, four cryptocurrencies are available to users: Bitcoin, Litecoin, Ethereum, and Bitcoin Cash.

How to Buy/Sell Cryptocurrency on PayPal?

Until recently, the purchase and sale of cryptocurrencies using PayPal were carried out only with the use of third-party platforms such as Coinbase, eToro, LocalBitcoins, and others. Fortunately, now users can directly buy or sell cryptocurrency on PayPal. 

To buy or sell digital assets via PayPal, you must create an account. When creating a new account, the user must go through the KYC process: provide the name, email, phone number, and other necessary information. If the user already has an account, then to buy/sell cryptocurrency, just click on the button labeled “Crypto”. Next, choose which coins to buy or sell. The advantage of PayPal is that the service allows you to buy small amounts of cryptocurrencies, starting from $1. To pay for the purchase of cryptocurrencies, you need to have the necessary amount of funds, a linked debit card, or a bank account. 

Fees for buying or selling cryptocurrencies depend on the transaction amount. When making a transaction, PayPal will provide an exchange rate that already includes a crypto conversion spread. The user does not need to pay a fee for using PayPal as a crypto wallet.

Transaction amountFee
1.00 – 4.99 USD0.49 USD
5.00 – 24.99 USD0.99 USD
25.00 – 74.99 USD1.99 USD
75.00 – 200.00 USD2.49 USD
200.01 – 1000.00 USD1.80%

Moreover, users can also buy or sell cryptocurrencies on the reliable Coinbase exchange using the PayPal payment option. The popular crypto exchange eToro also provides an opportunity to buy and sell crypto assets using PayPal as a deposit method. Please note that to use Coinbase and eToro, you must have a verified account and be a resident of the eligible country. In addition to the above method, PayPal can be used to buy or sell cryptocurrencies on the peer-to-peer platforms LocalBitcoins and Paxful. LocalBitcoins and Paxful are P2P services where buyers exchange with sellers directly. These exchanges allow cryptocurrency sellers to set their rates and payment methods. Not all sellers accept PayPal. The buyer can filter the search by payment method to find someone who supports the desired method. 

Cryptocurrency Transfer

One of the main updates was the support for transfers of Bitcoin, Ethereum, and other supported digital coins to external wallets. Initially, there was no such possibility in the PayPal service. To withdraw crypto assets from the system’s internal wallet, it was necessary to convert them into fiat (in fact, sell them).

Now users can send BTC, ETH, BCH, and LTC to external addresses, including those associated with exchange accounts and hardware wallets. Also, from now on, inside PayPal, you can send cryptocurrency to other users. To do this, just go to the section “Finance” - “Crypto balance” and click “Transfer” - “Send”. Next, the user needs to select the recipient, the desired cryptocurrency, and enter the amount. PayPal also allows you to enter a USD amount, which the service will calculate, convert into cryptocurrency, and send.

Users can also receive cryptocurrency by sharing their PayPal destination tag. To do this, go to the section “Finance”-“Crypto balance” and click “Transfer”-“Receive". Choose the cryptocurrency you want to receive and get your QR code and crypto address.

Check-out with Crypto

Crypto holders can buy goods in millions of partner stores. Transfers are converted online to fiat at the check-out. The platform’s task is to automatically convert coins when paying for goods and services into local fiat currencies. Crypto holders may not use exchanges to pre-convert funds. This function has become available thanks to the cooperation of PayPal with Paxos Trust Company. To make a crypto check-out, the user must first verify the identity by filling out the W-9 tax form and agree to the terms and conditions of the service. It is noteworthy that the service does not charge additional fees for the ability to pay with cryptocurrency. From the buyer’s side, the process looks like this:

  • On check-out, a user who has a cryptocurrency on the PayPal balance can choose a crypto payment method. Please note that only one type of cryptocurrency can be used when paying for each purchase. That is, if you have BTC and want to pay for the purchase, you need to have a sufficient BTC balance to cover the purchase amount.
  • As soon as you have made a choice, your cryptocurrency is converted into fiat and sent to the seller. PayPal does not charge fees for this service, and the spread is built into the exchange rate.

For the seller with whom the payment flow does not change. The seller still receives the fiat currency. The advantage of this method for the seller is to attract more customers.


The moment when PayPal became crypto-friendly laid a solid foundation for crypto mass adoption. PayPal services are used by millions of users and merchants around the world. Since PayPal allows the purchase, sale, holding, and transfer of cryptocurrencies directly in the app, users do not need to turn to third-party platforms, which leads to increased security and convenience. Hopefully, in the near future, the PayPal crypto service will become available to residents of more countries and expand the list of available cryptocurrencies.


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