Payment giant PayPal released a major late-night update: integrating crypto transfers into daily communication channels

PayPal has launched "PayPal Links," a new peer-to-peer payment service that allows users to create one-time personalized payment links for sending or requesting funds via messaging apps, SMS, or email. Initially available to U.S. users, it will expand to the U.K. and Italy later this month.

The service is designed for simplicity, with each link being private and single-use.
Transfers between friends and family won’t trigger tax forms like the 1099-K.
Unclaimed links expire after 10 days, and users can send reminders or cancel requests.
Funds are instantly credited to the recipient’s PayPal balance upon acceptance.

Notably, PayPal plans to integrate cryptocurrency transfers, enabling users to send Bitcoin, Ethereum, and its stablecoin PYUSD through the same link, even to external crypto addresses. This move aims to merge digital communications with financial transactions, enhancing convenience and adoption of digital assets.

PayPal has taken decisive steps to advance the convergence of conversations and transactions, launching a peer-to-peer payments initiative that transforms messaging channels into payment corridors.

The financial payments giant launched a new service, PayPal Links, on September 15th local time. Users can use the service to create a one-time personalized link and put it in a text message, private message or email to send or request funds.

The company said the service, designed for speed and simplicity, will initially be available to its 278 million customers in the U.S. It will expand to other markets, including the U.K. and Italy, later this month.

PayPal also said the plan includes changes designed to ease tax concerns: Transfers between friends and family via Links or Venmo will no longer trigger 1099-K filing requirements, meaning gifts, reimbursements, or shared expenses won't generate unnecessary tax forms.

How PayPal Links works:

Create a personalized link: Open the PayPal app, enter your payment or request details, and generate a unique, one-time link to share.
Always the right person: Each link is private, one-time use, and created for a specific transaction.
Send anywhere: Send your link via SMS, direct message, email, or chat. Add notes, emojis, or payment instructions.
Manage payment activity: Unclaimed links expire after 10 days, and users can send reminders through the PayPal app before the link is claimed, or even cancel a payment or request.
Click and go: The recipient clicks a link to complete or accept a payment using their PayPal account within the PayPal app.
Funds are instantly credited to your account: Once accepted, the recipient will receive the funds immediately via their PayPal balance.

At the same time, PayPal is not limited to US dollar transfers, it also plans to support cryptocurrency transfers.

The company said the upgrade will allow users to transfer Bitcoin, Ethereum, PYUSD and other assets through the same link, regardless of whether the recipient holds a PayPal wallet, Venmo account or external crypto address.

The integration highlights PayPal’s growing emphasis on digital assets. Data shows that the company’s stablecoin, PYUSD, has a market capitalization of $1.27 billion.

By embedding cryptocurrency into messaging-based payments, PayPal is aiming to drive adoption and utility in a space where convenience often dictates usage.

Diego Scotti, general manager of PayPal's consumer business, sees the launch as part of its mission to make "money as mobile as communications."

"Whether you're texting, messaging or emailing, your money can now follow your conversation," said Scotti. "Combined with PayPal World, this is an unmatched value proposition that appears where people connect, making it easy and efficient to pay friends and family no matter where they are or what app they're using."