PayPal Users Can Now Transfer, Send, and Receive Bitcoin, Ethereum, Bitcoin Cash, and Litecoin

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The world of digital finance continues to evolve at a rapid pace, and PayPal is cementing its role as a major player in the cryptocurrency space. Starting in 2022, eligible U.S. users can now seamlessly transfer, send, and receive major cryptocurrencies—including Bitcoin, Ethereum, Bitcoin Cash, and Litecoin—directly through their PayPal accounts. This marks a significant upgrade from the company’s earlier offering, which only allowed users to buy and hold digital assets.

👉 Discover how easy it is to manage crypto with a trusted financial platform.

This new functionality addresses one of the most requested features from users since PayPal first introduced cryptocurrency purchases. By enabling native transfers between PayPal and external wallets or exchanges, the company is giving users greater control over their digital assets and deeper access to the broader crypto ecosystem.

Expanded Crypto Functionality: What You Can Now Do

PayPal’s upgraded crypto services empower users with three core capabilities:

These features significantly enhance the utility of holding crypto within the PayPal ecosystem. For instance, users who transfer crypto into their PayPal account can later use it for purchases via PayPal’s Checkout with Crypto feature at millions of online and in-person merchants. This integration bridges the gap between digital assets and everyday spending.

The rollout began with select U.S. users and has since expanded to all eligible customers across the country—excluding Hawaii, where crypto services remain unavailable.

Regulatory Milestone: Full BitLicense Approval

A key development reinforcing PayPal’s commitment to responsible innovation is its acquisition of a full BitLicense from the New York Department of Financial Services (NYDFS). PayPal is the first company to convert a conditional license into a full BitLicense, underscoring its adherence to strict regulatory standards.

This milestone reflects PayPal’s strategy of combining cutting-edge technology with compliance, ensuring that its digital currency services are both secure and accessible. It also signals long-term confidence in the future of cryptocurrencies as part of a more inclusive financial system.

How to Transfer Crypto Into PayPal

Transferring cryptocurrency into your PayPal account is a straightforward process designed with security and ease of use in mind.

  1. Log in to your PayPal account and navigate to the crypto section.
  2. Select the cryptocurrency you wish to receive (e.g., Bitcoin or Ethereum).
  3. Tap the transfer button and choose “Receive.”
  4. Complete any required identity verification—typically needed only once.
  5. Share your unique deposit address with the sender or input it into your external wallet app.

To minimize errors, PayPal recommends scanning the QR code or copying the address directly. Manual entry should be double-checked, as transactions sent to incorrect addresses cannot be recovered. While PayPal does not charge fees for incoming transfers, network and sender fees may apply depending on blockchain congestion.

Each receive address is specific to the selected cryptocurrency and is regenerated for every transaction to enhance privacy and security.

Sending Crypto From PayPal to External Wallets

Users who want to move their digital assets outside of PayPal—such as to an exchange or hardware wallet—can do so with clear steps:

  1. Go to the crypto section in your PayPal app or website.
  2. Choose the coin you want to send and click “Send.”
  3. Complete identity verification if prompted.
  4. Enter the recipient’s external crypto address by pasting, typing, or scanning a QR code.

Before confirming, ensure the destination address matches the type of cryptocurrency you're sending (e.g., a Bitcoin address for BTC). Once initiated, crypto transfers are final and irreversible, so extra caution is essential—especially when sending to unfamiliar addresses.

While sending crypto between PayPal users is free, transferring out incurs a network (blockchain) fee, which fluctuates based on current network demand. PayPal displays an estimated fee during the confirmation process so users can make informed decisions.

👉 Learn how to securely manage your digital assets across platforms.

Instant, Fee-Free Crypto Transfers Between PayPal Users

One of the most user-friendly features is the ability to send cryptocurrency instantly—and at no cost—to friends and family who also use PayPal.

Here’s how it works:

  1. Open the crypto section and select the coin you’d like to send.
  2. Click “Send” and choose a contact from your PayPal network.
  3. Confirm the transfer.

There are no network fees or processing delays when sending within the PayPal ecosystem. This makes splitting bills, gifting digital assets, or sharing investments faster and more convenient than ever.

Security Measures: Protecting Your Digital Assets

To prevent unauthorized transactions, PayPal has implemented an additional layer of identity verification for crypto transfers. This process is typically required only once per user but may reappear under certain circumstances, such as device changes or suspicious activity.

The platform also emphasizes user education—reminding customers that blockchain transactions are irreversible and stressing the importance of verifying addresses carefully.

Frequently Asked Questions (FAQ)

Q: Which cryptocurrencies can I transfer on PayPal?
A: You can transfer Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC).

Q: Are there fees for sending crypto between PayPal users?
A: No. Sending and receiving crypto between PayPal accounts is completely free with no network charges.

Q: Can I send crypto from PayPal to a hardware wallet?
A: Yes. You can send supported cryptocurrencies to any valid external wallet address, including hardware wallets.

Q: Is my crypto insured if something goes wrong?
A: PayPal holds cryptocurrency reserves to support customer holdings, but individual account protections may vary. Always follow security best practices.

Q: Why can’t users in Hawaii access these services?
A: Due to local regulatory restrictions, PayPal’s crypto features are currently unavailable in Hawaii.

Q: How long do transfers take?
A: Incoming transfers depend on blockchain confirmation times, which vary by network. Outgoing transfers are processed quickly once confirmed.

👉 Start exploring seamless crypto transfers today—no matter your experience level.

Looking Ahead: The Future of Crypto on PayPal

PayPal’s expansion into native crypto transfers is just one step in its broader vision for digital finance. The company plans to continue rolling out new features, products, and services that enhance accessibility, usability, and integration across the financial landscape.

By connecting users to external wallets, exchanges, and decentralized applications, PayPal is helping bridge traditional finance with the emerging web3 economy—all while maintaining compliance, security, and ease of use.

As adoption grows, features like these will play a crucial role in making cryptocurrency a practical part of everyday life—not just an investment asset.

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