PayPal introduced PayPal links, a new peer-to-peer (P2P) payments feature that allows users to send and receive money via a personalized, one-time link. PayPal users in the U.S. can begin creating personalized payment links today, with international expansion to the UK, Italy, and other markets planned to start later this month.
By making payments simple and universal, PayPal links helps drive new customer acquisition and brings more users into the PayPal ecosystem. Crypto will soon be directly integrated into PayPal’s new P2P payment flow in the app.
This will make it more convenient for PayPal users in the US to send Bitcoin, Ethereum, PYUSD, and more, to PayPal, Venmo, as well as a rapidly growing number of digital wallets across the world that support crypto and stablecoins.
Simplifying P2P and the Tax Landscape
The new feature is designed to simplify money transfer by allowing users to share a unique payment link through text messages, chat, or even email conversations. There is no need to download the app, as PayPal Links can be shared directly to receive payments.
There are additional benefits similar to friends-and-family transfers through Venmo, payments made through PayPal Links are exempt from 1099-K tax reporting, ensuring that personal payments remain private and do not trigger tax obligations.
“For 25 years, PayPal has revolutionized how money moves between people. Now, we’re taking the next major step,” said Diego Scotti, General Manager, Consumer Group at PayPal. “Whether you’re texting, messaging, or emailing, now your money follows your conversations.”
How PayPal links work:
A simple guideline for users on how ‘PayPal links’ works-
- Create a personalized link: Open the PayPal app, enter the details of your payment or request, 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.
- Drop it anywhere: Send your link in a text, DM, email, or chat. Add a note, emoji, or payment note.
- Manage payment activity: Unclaimed links expire after 10 days. Users can send a reminder or even cancel the payment or request before the link is claimed with the PayPal app.
- Tap and done: The recipient taps the link and either completes or accepts the payment within the PayPal App with their PayPal account.
- Funds are instant: the recipient will get immediate access to their funds with a PayPal Balance account once accepted.
The introduction of “PayPal links” adds to the competitive landscape of P2P services, which includes established players such as Zelle, Cash App, and Apple Cash. A recent J.D. Power study indicated that on average, consumers use 2.8 P2P brands, with Zelle as the leading brand and PayPal being the most common secondary brand.
PayPal had also launched “Pay with Crypto” for U.S. merchants in July 2025. The service aimed at making international payments more efficient and allows businesses to accept over 100 cryptocurrencies, including Bitcoin and Ethereum, which are then automatically converted into stablecoins or fiat currency. This service offers a fixed 0.99% transaction fee, which PayPal states can significantly reduce processing costs compared to traditional cross-border payment methods.
Also Read: Kite Secures $18M from PayPal to Build Blockchain for AI Agents
