PayPal To Expand PYUSD Stablecoin Across Products to Serve 20 Million Merchants
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As per a latest Bloomberg Report, PayPal is expanding its PYUSD stablecoin integration across more products this year with an aim to serve its 20 million merchants. The move will allow merchants to easily pay and receive payments in stablecoin through a new bill-pay feature. The plans were revealed during PayPal’s annual investor day, unveiling its new merchant product launches and offerings.
Michelle Gill, who leads PayPal’s small business and financial services unit, explained that the goal is to help merchants onboard more vendors for seamless transactions. She emphasized that PYUSD would reduce currency conversion fees and payment delays.
“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,” she noted.
PayPal To Integrate PYUSD Into Hyper wallet
Besides, PayPal plans to integrate PYUSD stablecoin into Hyperwallet this year. Hyperwallet, one of PayPal’s key acquisitions, allows businesses to send payments to freelancers, contractors, and sellers worldwide.
PayPal acquired Hyperwallet for $400 million in 2018 and is now turning it into a crypto-powered payout system. PYUSD payouts will launch in the first half of this year, offering businesses a faster, cheaper way to send global payments without banks. This is a game-changer for freelancers, gig workers and independent sellers who use Hyperwallet, allowing them to receive PYUSD payments instantly in their PayPal accounts, bypassing bank delays and high fees.
The Stablecoin Boom
Marc Boiron, CEO of Polygon Labs, highlighted that stablecoins are booming with a current market cap of $216.26 billion, thanks in part to platforms like PayPal making them easier to use. Last October, PayPal completed its first transaction with its own stablecoin, showcasing its potential in commercial transactions. Notably by September 2024, PayPal’s PYUSD stablecoin crossed the $1 billion market cap, less than a year after its launch.
Jose Fernandez da Ponte, PayPal’s senior VP of crypto, pointed out that the transaction highlighted other crypto use cases, noting that the speed and availability of settlement makes it more attractive. He also believes that the current US government is supportive of crypto and that the US will soon catch up with other countries in adopting and using crypto technologies.
Markets Heating Up
The stablecoin market is becoming increasingly competitive as major players expand amid regulatory changes. Tether (USDT) faces challenges in Europe due to MiCA compliance but continues to thrive in crypto-friendly regions like El Salvador. Circle’s USDC has benefited from the Solana meme coin boom and gained approvals from MiCA and the Dubai Financial Services Authority. Ripple is also entering the market with its RLUSD stablecoin, available on Ethereum and the XRP Ledger, adding to the growing competition.
