(28 February 2025 – United States) PayPal is seeking to integrate its stablecoin PYUSD into more products in an effort to address the full gamut of merchants’ needs within a single platform.
PayPal aims to offer PYUSD as an option for its more than 20 million small-to-medium sized (SME) merchants to settle payments with vendors through its upcoming bill-pay product by the end of 2025. The concept involves merchants inviting vendors into the PayPal network to facilitate easier transactions. PayPal completed its first business transaction using PYUSD in 2024 with the stablecoin pegged against the greenback. Stablecoins are currencies designed to track fiat currencies one-to-one.
PayPal plans to add PYUSD as an option for global payments through Hyperwallet, a business that helps organisations send batch payments to contractors, freelancers or sellers globally. PayPal acquired Hyperwallet in 2018 for US$400 million and plans to have PYUSD payouts live in H1 2025. The business will also allow merchants to settle PayPal checkout transactions in cryptocurrencies by the end of Q4 2025.
“A lot of the payments we’re expecting are going to be cross-border because merchants in the US are seeking to pay vendors and suppliers abroad. The thesis was – can we facilitate that on PYUSD rails so as not to have the currency conversion, the friction, as well as time?” stated PayPal Small Business and Financial Services Group GM, Michelle Gill.
“We’ve been talking about blockchains for like a decade now. The concept of these things never becomes real until you actually can start to spend it. And I think that’s what we’re enabling” commented PayPal CEO Alex Chriss.
“Stablecoins are going to dominate the US$44 trillion cross-border retail B2B transaction market within the next five years. Recent signposts include Stripe acquiring Bridge for US$1.1 billion, PayPal rolling out PYUSD rails for 20,000 small- and mid-sized merchants, BofA saying its launching a stablecoin and as merchants get comfortable to stablecoins, they will roll out across domestic retail transactions as well” said Bitwise CIO Matt Hougan.