PayPal Users Can Now Send Bitcoin, Ethereum, and PYUSD With New P2P Links Feature

PayPal has introduced a new feature allowing users to send and receive cryptocurrencies through its P2P payments system, one-time links across different communication platforms. To push mainstream crypto usage beyond investment and trading, PayPal Links will enable people to send Bitcoin, Ethereum, and PYUSD.

PayPal To Let Users Send Crypto via P2P links

In a press release, PayPal has unveiled a new functionality that will enable people to send and receive cryptocurrencies directly via its peer-to-peer (P2P) network. This new feature, called PayPal Links, is a major step in promoting the mainstream adoption of digital assets.

The functionality, PayPal Links, will allow users to share customized one-time links on various communication systems, such as text, email, and chat. PayPal stated that this will first be implemented in the United States and then extended to the United Kingdom and Italy, among others, later this year.

PayPal will integrate well-known cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and its own stablecoin, PYUSD. The move by PayPal to incorporate these assets is to increase the utility of cryptocurrencies beyond investment and trading. 

The new system has caught the attention of the crypto community, as P2P payments between PayPal links and known parties like Venmo will be tax-exempt. The transfer of crypto between friends and family will not result in the tax reporting provisions of IRS 1099-K, so gifts and reimbursements can remain tax-free.

How the PayPal Links System Will Work

PayPal explained that PayPal Links will simplify the way money is transferred across different platforms and draw more users into the PayPal ecosystem. While allowing users to generate personalized, one-time links, PayPal Links will work with the PayPal Me feature.

With this feature, PayPal users can send a link requesting funds, specifying the payment amount, and including notes or emojis. According to PayPal, when the recipient accepts the request, the sender will “get immediate access to their funds.” 

Links that are not claimed will expire within 10 days. Users can also send each other reminders, cancel the payment, or terminate the request before the link is claimed on the PayPal app. Payments with P2P on PayPal have been on the rise. As per the announcement, P2P payments and other consumer payments increased by 10% year-over-year in the second quarter of 2025.

PayPal Keeps Pushing the Adoption of Crypto

The introduction of PayPal Links is a part of the general strategy of the payment processor to promote the adoption of digital assets in more accessible and practical ways for everyday use cases. 

A PayPal spokesperson said that the company remains committed to providing its users with more ways to interact with digital assets. The company’s recently launched Pay with Crypto feature enables individuals and small businesses to accept dozens of cryptocurrencies.

This functionality allows one to transfer cryptocurrencies to other external wallets, which reinforces the decentralized essence of peer-to-peer transactions. The additional benefit of transactions being 1099-K tax-exempt could make the use of PayPal Links more appealing to people.