PayPal Extends Its Trusted Brand into the World of Digital Assets with Taxbit

2B+ API calls processed with 99.9% availability

Millions Of tax forms delivered

100% Accuracy on customer tax documents

Taxbit’s enterprise compliance platform and industry-leading expertise provide tax and accounting solutions that enable global growth.

PayPal is pioneering the integration of digital assets and stablecoins to revolutionize financial transactions, offering secure, efficient, and inclusive solutions that bridge the gap between traditional finance and the evolving digital economy. Taxbit is powering its customer in-app experience, as well as its corporate and information reporting compliance.

The standard our customers hold us to.

“We wanted to bring users crypto with all the trust and safety PayPal is known for. Taxbit helped us fulfill our commitment to the highest standards for compliance.”

Edwin Aoki · CTO, Blockchain, Crypto, & Digital Currencies, PayPal

PROBLEM

Unleashing In-App Customer Experience & Tax Transparency

PayPal prioritized maintaining its seamless in-app customer experience while ensuring strict adherence to tax compliance as it introduced crypto offerings.
With evolving IRS Crypto Broker Regulations and limited reporting regimes in countries like the UK and Luxembourg, PayPal aimed to provide customers with the tax information needed for personal tax preparation.
Taxbit enables in-app visibility for PayPal users, including gain/loss positions, year-end transaction summaries, and gain/loss statements.
During the 2021 and 2022 tax seasons, Taxbit issued essential tax documents to 4.4 million U.S. crypto customers and 360,000 UK customers with 100% accuracy.

SOLUTION

Enabling scale-out international growth and streamlining corporate compliance across Tax and Accounting with industry expertise

After launching crypto trading in the U.S. in 2020, PayPal expanded internationally with rollouts in the UK (2021), Luxembourg (2022), and the launch of its U.S. dollar stablecoin, PayPal USD (PYUSD), in 2023—Taxbit supported more than 15 program and product launches during this rapid growth.

Taxbit’s enterprise compliance platform provided a scalable, reliable foundation to support PayPal’s international expansion and evolving crypto services, such as cross-border merchant payments.

The modular, reusable nature of Taxbit’s platform enabled PayPal to adapt to different regulatory environments efficiently, including the UK’s unique gain/loss reporting requirements and adoption of the pooling accounting method over HIFO.

Taxbit supports PayPal’s corporate accounting organization with infrastructure to comply with fair value reporting standards, offering real-time pricing and recommending the most accurate principal pricing markets for digital assets.

At the core of this compliance infrastructure is Taxbit’s rules engine, built on deep industry expertise, powering accurate statement generation, real-time valuation, and compliance across both tax and accounting functions.

RESULTS

Powering global crypto expansion with trusted, scalable tax and accounting infrastructure

As PayPal expands its digital asset footprint across borders and product lines, Taxbit’s enterprise-grade compliance platform ensures a seamless blend of innovation and regulatory integrity. From powering accurate in-app tax reporting for millions of users to supporting real-time corporate fair value accounting, Taxbit enables PayPal to scale confidently, meet global requirements, and deliver a best-in-class customer experience—now and in the future.