PayPal’s Peer-to-Peer Service Adds Crypto Payments

PayPal said on Sept. 15 that it has expanded its peer-to-peer payment service to include cryptocurrencies.

The announcement was part of the company’s introduction of PayPal Links, a way to send and receive money through a personalized, one-time link that can be shared in any conversation. The new Links feature expands upon the existing payments-through-link option, PayPal Me.

When crypto is added to PayPal’s new P2P payment flow in the app, American users will be able to send bitcoin, Ethereum, PYUSD, and more, to PayPal, Venmo, and other digital wallets across the world that support crypto and stablecoins, the company said.

Users in the UK, Italy, and other markets will be able to access the feature later this month.

To send money using PayPal Links, users can choose “Send and request money with a link,” after tapping on the Send/Request button in the app.

Once the details are entered and reviewed, the user can select “Create PayPal Link,” then click on “Share PayPal Link” to share the link.

To request payments, users can choose “Send and request money with a link,” enter the amount, and select “Request.” After reviewing, the user can select “Create PayPal Link” and share the link with the recipient.

Unclaimed links expire after 10 days.

Paying friends and family through Venmo and PayPal is exempt from 1099-K reporting.

“Users won’t receive tax forms for gifts, reimbursements, or splitting expenses, helping ensure that personal payments stay personal,” PayPal said.

Peer to Peer Payments

The P2P payment ecosystem is gaining in popularity. According to a market report from Pymnts, the trend is especially strong among consumers aged between 18 and 41, who utilize peer-to-peer apps to manage off- and online spending.

Besides PayPal, some of the most popular P2P apps in the United States include Zelle, Venmo, Cash App, and Apple Cash, according to an April 18 report from NerdWallet.

Sending and receiving money through apps can expose users to certain scams.

One common scam involves a user getting a text message purportedly from their bank asking for a payment authorization. When users respond “no,” scammers will call directly and claim an account breach or some other urgent issue, and ask users to verify their identity with personal and account information. These details give the impostors access to the victim’s P2P account.

Another scam involves a malicious actor claiming to have accidentally sent you overpayments and then asking for a refund. These payments are usually done with stolen credit cards, and if the refunds are given, the user will be left at a loss.

With the proliferation of payment apps, related scams are also on the rise.

If a person falls victim to such a scam, they can report the incident to the Federal Trade Commission and the Internet Crime Complaint Center.

Nearly $1.93 billion was stolen in crypto-related crimes in the first half of 2025 alone, according to Kroll Cyber Threat Intelligence. This amount surpasses the whole of 2024.

Around 28 percent, or about 65 million people in the United States, own cryptocurrencies based on 2025 estimates from the Security.org website.

Approximately 67 percent of current crypto owners plan to buy even more this year, with Bitcoin, Ethereum, and Dogecoin among the top three most desired digital currencies.