Payment giant PayPal has announced the launch of PayPal Links, a new feature for peer-to-peer (P2P) payments that will soon be expanded to support cryptocurrency transactions. The key advantage: personal crypto transfers will be exempt from automatic tax reporting, addressing one of the biggest pain points for crypto users in the U.S., minfin.com.ua reports.
How PayPal Links works
PayPal Links is an upgraded version of the existing PayPal Me service.
- Users can create personalized one-time links with a specified payment amount, simplifying the transfer process.
- If a recipient does not use the link within 10 days, it is automatically canceled.
In the coming weeks, the service will support Bitcoin, Ethereum, PayPal’s PYUSD stablecoin, and other tokens. The feature will launch first in the U.S., and then roll out to the UK and other markets.
Tax benefits
PayPal clarified that personal transfers labeled “friends and family” will not be reported to tax authorities.
“Users will not receive tax forms for gifts, reimbursements, or shared expenses, which helps ensure personal payments remain personal,” the company said.
This could significantly reduce the tax burden on the crypto community, as most crypto transactions in the U.S. are still treated as taxable events.
Part of PayPal’s broader crypto strategy
The launch of PayPal Links with crypto support marks a new step in the company’s ongoing crypto expansion, which began in 2020.
- PayPal has its own PYUSD stablecoin (currently among the top 15 globally by market cap).
- In July, the company introduced Pay with Crypto, allowing merchants to accept payments in dozens of cryptocurrencies.
This move further strengthens PayPal’s position as a key player in consumer-focused crypto payments.
Inform links: minfin.com.ua