In brief
- PayPal launched PayPal Links, a peer-to-peer payment tool for messaging apps that will soon support transfers of Bitcoin, Ethereum, PayPal’s PYUSD stablecoin, and other tokens.
- The program will first roll out in the U.S. before expanding to the U.K., Italy, and other markets later this month.
- Crypto transfers between friends and family on PayPal and Venmo will be exempt from 1099-K reporting requirements, the company said.
PayPal on Monday unveiled a new peer-to-peer payments program designed specifically for messaging apps—and crypto is playing a major role.
The initiative, called PayPal Links, will allow users to send various currencies directly to intended recipients via text, DM, or email. The program launched today for U.S. users sending dollars, but will “soon” expand to provide support for payments in Bitcoin, Ethereum, PayPal stablecoin PYUSD, and other tokens.
Decrypt asked a PayPal spokesperson for further details about the timing of the crypto initiative rollout, and what other tokens it might eventually include, but did not immediately receive a response.
One-time personalized links will ensure that the peer-to-peer payment system is both convenient and secure, the company said Monday. It will allow PayPal and Venmo users to easily swap select crypto tokens directly between user accounts, and also send tokens to other crypto- and stablecoin-supporting digital wallets.
The program will first debut in the United States, before expanding to the United Kingdom, Italy, and other countries later this month.
“For 25 years, PayPal has revolutionized how money moves between people. Now, we’re taking the next major step,” Diego Scotti, general manager of PayPal’s consumer group, said today in a statement. “Whether you’re texting, messaging, or emailing, now your money follows your conversations.
PayPal currently supports in-app crypto purchases for Bitcoin, Ethereum, and PYUSD—plus Solana, Chainlink, Litecoin, and Bitcoin Cash.
A key selling point of today’s announcement, in addition to increased flexibility for users, is 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 is] helping ensure that personal payments stay personal,” the company said.
Digital assets have become increasingly central to the payment giant’s expansion plans. Earlier this summer, PayPal announced it would begin allowing small businesses to accept payments in over 100 cryptocurrencies.
In the wake of the passage of the stablecoin-focused GENIUS Act in the United States, the company has also doubled down on allowing users to generate yield on deposits of PYUSD.
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