PayPal to enable Bitcoin transfers in peer-to-peer payments

PayPal will soon allow U.S. users to send BTC, ETH and PYUSD directly across accounts and wallets, expanding its peer-to-peer crypto payment ecosystem.

PayPal expands its peer-to-peer service

Payments giant PayPal announced Monday that it is integrating cryptocurrency transfers into its peer-to-peer payment flow. U.S. users will soon be able to send bitcoin, ether, PYUSD stablecoin, and other digital assets across PayPal, Venmo, and a growing number of crypto-compatible wallets.

The update arrives with PayPal Links, a new tool that lets users generate personalized one-time links to send or request funds. These links can be shared in texts, chats, or emails, embedding payments into everyday communication.

No tax reporting for personal crypto transfers

PayPal emphasized that personal transfers between friends and family will remain exempt from IRS 1099-K reporting requirements. This means gifts, reimbursements, and shared expenses will not generate tax forms, even when cryptocurrency is used in the transaction.

Strengthening PayPal’s role in digital currency

The move is part of the company’s PayPal World initiative, aimed at connecting the largest digital wallets and payment systems globally. Peer-to-peer payments remain a strong growth driver, with consumer payment volume rising 10% year-over-year in Q2.

In July, PayPal also announced plans to expand crypto payments for U.S. merchants, reinforcing its ambition to lead the global digital currency payments market.