Key Points
- A new partnership between Bybit Pay and Mesh enables Bybit’s 80 million customers to make crypto payments directly from their exchange accounts
- The integration eliminates the withdrawal step previously required before making payments on Mesh-supported platforms
- Companies already integrated with Mesh can enable Bybit Pay without additional technical configuration
- Mesh’s infrastructure connects over 300 wallets, exchanges, and financial services platforms
- Mesh secured $75 million in January at a $1 billion valuation, with reports of Binance negotiating a $2 billion funding round
Crypto exchange Bybit has announced that its payment service, Bybit Pay, has established a partnership with Mesh, a provider of cryptocurrency payment infrastructure. This integration enables Bybit customers to use their exchange-held digital assets for purchases on compatible platforms without transferring funds first.
Previously, customers needed to complete a withdrawal process, manually convert their holdings, or move assets to an external wallet before completing a payment. This additional friction has been eliminated with the new system.
Integration Functionality
On platforms powered by Mesh that offer Bybit Pay at checkout, users can simply choose this payment method and complete transactions using their current Bybit account balance. The withdrawal stage has been completely bypassed.
From a merchant perspective, no additional technical work is necessary. Businesses that have already integrated Mesh into their systems can simply activate Bybit Pay through their existing connection.
According to Bybit’s announcement, merchants gain access to flexible settlement options through Mesh’s programmable tools, including cross-market settlement controls. This allows for scenarios where a buyer pays with one cryptocurrency while the seller receives payment in a different asset, such as stablecoins or traditional currency.
Details about supported cryptocurrencies, applicable transaction fees, and geographical availability were not included in the announcement. Additionally, merchants retain the option to enable or disable Bybit Pay for their customers.
Mesh’s Infrastructure Overview
Mesh provides backend infrastructure that bridges wallets, cryptocurrency exchanges, and financial applications. The company’s network currently supports connections to more than 300 different platforms.
Originally established as Front Finance, the company has accumulated over $200 million in total funding. Dragonfly Capital led its January Series C round, which brought in $75 million, with additional participation from Coinbase Ventures, PayPal Ventures, and other investors.
According to a July report from Axios, Binance has been negotiating to lead another funding round for Mesh that would value the company at as much as $2 billion. Official confirmation from either party remains pending.
The company has also ventured into government payment systems. Through a Mesh integration in May, Bermuda implemented Stellar-based infrastructure for processing government payments.
While Bybit reports having 80 million users, this number has not been independently confirmed.
Tax Considerations for US Residents
The announcement does not clarify whether US customers will have access to Bybit Pay through Mesh. While Bybit characterized the integration as global, specific information regarding US availability was not provided.
US taxpayers who utilize cryptocurrency payment services should be aware that each transaction may create a federal tax liability. The IRS classifies digital assets as property, which means using crypto for purchases constitutes a taxable disposal event.
Taxpayers are required to determine capital gains or losses by comparing the asset’s original cost basis with its fair market value when the transaction occurs. Documentation should include the specific asset, quantity, dollar equivalent, and timestamp of each transaction.
Broker reporting requirements are also in effect. Reporting of gross proceeds for covered transactions commenced on January 1, 2025, while cost basis reporting began on January 1, 2026.
The Bybit Pay option became available to businesses connected to Mesh’s network starting September 3, 2026.
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