PayPal’s New P2P Feature Simplifies Crypto Transfers and Cuts Tax Burden
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PayPal Holdings (PYPL) has launched PayPal Links, a new peer-to-peer payments feature that allows users to send crypto including Bitcoin, Ethereum, and its own stablecoin PYUSD to an expanding network of digital wallets. The system makes personal transfers like gifts, reimbursements, or shared expenses tax-exempt within PayPal and Venmo, avoiding 1099-K reporting. Unlike the older PayPal Me links, the new feature lets senders specify payment amounts, add notes or emojis, and gives recipients immediate access to funds once accepted, with unclaimed links expiring in 10 days. Initially rolling out in the U.S. before expanding to the UK and other markets, PayPal Links comes as P2P payments grow steadily, with Venmo hitting record volumes. Since entering crypto in 2020 and launching PYUSD in 2023, PayPal has become a leading fintech player in digital assets, positioning its stablecoin that is worth $1.3 billion as the backbone of its Pay with Crypto service for small businesses.