PayPal is launching an update to its peer-to-peer (P2P) payment system that will include cryptocurrency transfers via personalised one-time links, as it seeks to make payments universal and increase user growth.

The service, called PayPal Links, allows users to receive and send money via a one-time link that can be shared in any conversation.

The company said on Tuesday that cryptocurrencies will soon be integrated directly into the PayPal app's new P2P payment flow, with the aim of making it more convenient for PayPal users to send Bitcoin, Ethereum, PYUSD and other digital currencies to both PayPal and Venmo.

Already available in the US, PayPal Links will soon be available in the UK, Italy and other markets, with expansion starting at the end of this month, the company announced on Tuesday.

To create a custom link, users can open the PayPal app and generate a unique, one-time link to share. They can send their link via SMS, direct message, email or chat. A note, emoji or payment message can be added.

The recipient can tap the link and complete or accept the payment within the PayPal app using their PayPal account. Once accepted, the recipient will have immediate access to their funds through a PayPal Balance account.

Unclaimed links expire after 10 days, and users can send a reminder or even cancel the payment or request before the link is claimed using the PayPal app.

Diego Scotti, general manager of PayPal's consumer group, highlighted PayPal's 25-year journey to enhance the world of payments, with the new service further reinforcing the firm's mission. "Now, we're taking the next major step. Whether you're texting, messaging or emailing, your money now follows your conversations," he added.

The company also stated that total P2P and other consumer payment volume saw solid growth in the second quarter, increasing 10% year-on-year.

Venmo, PayPal's US payment app, also recorded its highest total payment volume (TPV) growth in three years, according to the firm. "With PayPal World unlocking seamless interoperability, P2P is poised for even greater momentum in the future as PayPal and Venmo connect to billions of wallets around the world," the firm said.

In July, PayPal launched a new service that allows businesses to accept payments in over 100 cryptocurrencies.

PayPal claims the new service, Pay with Crypto, will simplify cross-border payments by connecting an "unmatched combination" of cryptocurrencies, digital wallets and merchants whilst also reducing transaction fees by up to 90%.

The service currently supports currencies including Solana and USDC, as well as wallets Coinbase and MetaMask, with more to be added in the future.

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