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NewsBriefs

PayPal's next act: Connective tissue for North Carolina considers surcharge cap
the future of digital commerce
North Carolina lawmakers are weighing a bill to cap cred-
PayPal is aggressively repositioning itself at the center of it card surcharges at 2 percent, joining a growing list of
digital commerce through new partnerships, asset sales states regulating the practice. The House Finance Commit-
and blockchain initiatives. A two-year deal with Blue tee approved the measure Sept. 23, 2025; violations would
Owl Capital will offload about $7 billion in U.S. buy now, trigger $500 fines. Merchants would have to disclose sur-
pay later (BNPL) receivables, freeing capital while PayPal charge amounts at the point of sale or online checkout,
continues to underwrite and service loans. Simultane- or verbally for phone payments. The bill, slated for Jan. 1,
ously, PayPal's stablecoin PYUSD gained new traction af- 2026 implementation, awaits full House and Senate votes
ter blockchain network Stable adopted it for cross-chain when the legislature reconvenes Oct. 21.
settlement, supported by an investment from PayPal Ven-
tures. Currently, North Carolina imposes no surcharge limits.
Only Massachusetts, Connecticut and Puerto Rico out-
These moves coincide with a strategic partnership with right ban surcharges, while at least a dozen states set
Google to co-develop AI-based "agentic commerce" frame- restrictions. The Electronic Transactions Association re-
works, embedding PayPal's services more deeply into ported caps ranging from 1 to 3 percent and rules such
Google's platforms. PayPal also launched Pay with Crypto, as signage requirements in Michigan and price-inclusion
allowing merchants to accept over 100 cryptocurrencies mandates in Kansas. Supporters say North Carolina's cap
with instant fiat conversion and low fees. Analysts see a would increase transparency and consumer trust; oppo-
cohesive strategy emerging: offload risk where prudent, nents warn it could erode merchant margins amid rising
double down on growth sectors like stablecoins and AI, processing costs. The debate reflects ongoing national ten-
and position PayPal as infrastructure connecting fiat, sion between consumer protection and business flexibility
crypto and AI-enabled payments. If successful, the com- in handling card fees.
pany could redefine its role from processor to central con-
nector in next-generation commerce.

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