PayPal to Expand P2P Crypto Payments With New “Links” Feature

PayPal is rolling out PayPal Links, a peer-to-peer payment system designed to simplify transfers and soon support Bitcoin, Ethereum, and its own PYUSD stablecoin—all while keeping personal crypto transactions tax-exempt.

• Feature will soon enable tax-exempt P2P transfers in BTC, ETH, and PYUSD across millions of wallets.
• U.S. rollout starts this month, with expansion planned for the UK and global markets.
• Unclaimed links expire after 10 days and can include reminders for recipients.
• PayPal continues to grow its crypto footprint with PYUSD and Pay with Crypto for merchants.

PayPal Holdings is expanding its peer-to-peer payments ecosystem with a new service called PayPal Links, aimed at making personal transfers easier and crypto-ready. The feature allows users to generate personalized, one-time links that specify a payment amount and include notes or emojis, creating a simple way to request funds without sharing banking details. Unlike the earlier PayPal Me links, which required recipients to input the amount, PayPal Links streamlines the process by letting the sender set the requested sum. Once the recipient accepts, funds are available to the sender immediately, while any unclaimed links automatically expire after ten days.

A key draw for crypto users is that PayPal Links will soon support Bitcoin, Ethereum, and PayPal’s PYUSD stablecoin, enabling tax-exempt transfers between known parties. The company emphasized that friends-and-family transfers through PayPal and Venmo remain exempt from 1099-K reporting, so gifts, reimbursements, or shared expenses won’t trigger tax forms. This addresses a long-standing issue for crypto users, as most transactions like trading or purchasing with digital assets can create taxable events.

Initially launching in the U.S., PayPal Links is set to expand to the UK and other markets later this month. The rollout comes amid strong growth in PayPal’s consumer payments, which rose 10% year-over-year in Q2 2025. Venmo, PayPal’s subsidiary, also recorded its highest total payment volume in three years, reinforcing the company’s strategy to connect “billions of wallets worldwide.”

PayPal has been a prominent player in crypto since enabling trading in 2020 and partnering with Paxos to launch PYUSD in 2023. Today, PYUSD ranks as the 11th-largest stablecoin with a market cap of about $1.3 billion and underpins the “Pay with Crypto” feature that lets small businesses accept dozens of digital currencies. With PayPal Links, the company is deepening its commitment to both crypto innovation and global P2P payments, aiming to make digital transactions seamless and tax-friendly for everyday users.

Final Thought

By merging easy-to-use payment links with crypto support and tax-friendly rules, PayPal is positioning itself as a key gateway for mainstream digital asset transfers, setting a new standard for global peer-to-peer payments.