PayPal Expands PYUSD Beyond Experimentation
PayPal has ambitious plans for its U.S. dollar-pegged stablecoin, PYUSD, as the company pushes for broader adoption. During its investor day in New York, executives laid out a strategy to integrate PYUSD into merchant transactions, aiming to have 20 million merchants using the stablecoin by the end of 2025.
According to Michelle Gill, PayPal’s General Manager for Small and Medium Enterprises, PYUSD will be integrated into PayPal’s bill-pay product, allowing merchants to settle payments with vendors using the stablecoin. The company expects this feature to launch later this year.
Cross-Border Payments and Reducing Transaction Costs
One of the primary goals of PYUSD is to facilitate cross-border payments by reducing currency conversion costs and transaction times. PayPal believes stablecoins can streamline international vendor payments, eliminating the friction associated with traditional payment systems.
In 2024, PayPal completed its first PYUSD-powered business transaction, setting the stage for a wider rollout. The company is now focusing on merchant onboarding and expanding PYUSD’s use case beyond peer-to-peer transfers.
Regulatory Environment and Future Expansion
As stablecoin regulations in the U.S. gain momentum, PayPal is positioning PYUSD to benefit from clearer regulatory frameworks. A proposed federal stablecoin bill could accelerate the adoption of compliant digital payment solutions, providing PayPal with an opportunity to solidify PYUSD’s market presence.
Beyond PYUSD, PayPal is also enhancing its broader payments ecosystem, including Hyperwallet, a mass payment platform it acquired in 2018. The company plans to integrate PYUSD as a direct payment option for Hyperwallet users by mid-2025.
PayPal CEO Alex Chriss emphasized the company’s commitment to innovation and revenue growth, setting a target to increase earnings by 20% by 2027. With PYUSD adoption on the rise, PayPal is making a significant bet on the future of stablecoins in digital payments.
