Cryptocurrencies like Bitcoin, Ethereum, and Litecoin have gained significant traction, leading many global businesses to integrate them as payment options. Major brands, including Microsoft, Subway, and PayPal, now support digital currencies in various forms.
PayPal does accept Bitcoin through integrations with third-party payment processors like Braintree, Coinbase, and BitPay. Users of these platforms can sell their Bitcoin and transfer the resulting fiat currency directly to their PayPal accounts.
It's important to note that PayPal does not support holding Bitcoin as a currency within your PayPal balance for Australian users. The primary reason for this limitation is Bitcoin's high price volatility, which introduces financial risk for merchants. For instance, if a sale is conducted in Bitcoin, a sudden drop in value the next day could turn that transaction into a loss.
Supported Countries for Bitcoin on PayPal
PayPal's cryptocurrency services are available only in select regions. Currently, users in the United States (excluding Hawaii) can buy, sell, hold, and use Bitcoin, Ethereum, Litecoin, and Bitcoin Cash directly through their PayPal accounts.
Residents of other countries must utilize integrated third-party processors to handle cryptocurrency transactions, as direct support is not universally available.
How Merchants Can Accept Bitcoin via PayPal
Merchants using PayPal who wish to accept Bitcoin can do so by integrating with Braintree, a payment processor owned by PayPal. Braintree supports a wide range of payment methods, including credit cards, digital wallets, and cryptocurrencies like Bitcoin.
This integration allows businesses to accept Bitcoin without handling the cryptocurrency directly. Instead, Braintree manages the conversion and settlement process, depositing fiat currency into the merchant's account.
At present, PayPal acts only as an intermediary and does not natively process Bitcoin transactions. Future direct support may depend on Bitcoin achieving greater price stability and broader regulatory acceptance.
👉 Explore payment processing solutions
Can You Buy Bitcoin Using PayPal?
While buying Bitcoin has become more accessible through mobile apps and exchanges, purchasing it directly with PayPal balance is not currently possible. Major cryptocurrency exchanges typically do not accept PayPal due to the risk of chargebacks and potential fraud.
However, users can explore peer-to-peer (P2P) trading platforms like LocalBitcoins to find sellers who accept PayPal as a payment method. Alternatively, some services allow users to sell Bitcoin and withdraw the cash value to their PayPal account.
It's worth emphasizing that although PayPal has partnerships with entities like Coinbase, these integrations only support selling cryptocurrency—not buying it with PayPal funds.
Frequently Asked Questions
Can I hold Bitcoin in my PayPal wallet?
Yes, but only if you are a user in the United States (excluding Hawaii). Users in other countries, including Australia, cannot currently hold Bitcoin directly in their PayPal balance.
Why doesn’t PayPal support Bitcoin worldwide?
Key factors include regulatory uncertainty, Bitcoin’s price volatility, and operational risks such as chargeback fraud. These challenges make broad rollout complex.
Are there fees for selling Bitcoin through PayPal?
Yes, transaction fees apply and vary depending on the third-party payment processor used, such as Coinbase or BitPay. These costs are typically deducted before funds reach your PayPal account.
Is it safe to use PayPal for Bitcoin transactions?
Using integrated PayPal partners is generally secure, but users should still practice caution—especially on P2P platforms—to avoid scams or fraudulent sellers.
Will PayPal support more cryptocurrencies in the future?
PayPal may expand its cryptocurrency offerings based on user demand, regulatory developments, and market stability. Updates are usually announced on their official blog.
Can I send Bitcoin to another PayPal user?
No, PayPal does not currently support direct cryptocurrency transfers between users. Bitcoin must be sold into fiat currency before sending funds via PayPal.