PayPal Expands USD Stablecoin, Targets 20M Merchants

PayPal, the global online payments giant, is reportedly planning a significant expansion of its US-dollar-backed stablecoin, PayPal USD (PYUSD), by integrating the asset into several of its products this year. According to a report, the California-based firm aims to increase the user base of PYUSD by offering it as a payment option to its more than 20 million small-to-medium-sized merchants through its bill-pay product, scheduled to launch by the end of 2025.

Michelle Gill, general manager of PayPal's small business and financial services group, stated that the company's goal is to encourage merchants to invite their vendors to use the PayPal network for smoother transactions. Gill explained that the strategy involves facilitating cross-border payments on PYUSD rails to eliminate currency conversion friction and time delays.

In addition to integrating PYUSD into its bill-pay product, PayPal plans to add the stablecoin as a global payment option for its payout platform, Hyperwallet. Acquired for $400 million in 2018, Hyperwallet enables organizations to send mass payments to contractors, freelancers, and sellers worldwide. PYUSD payouts through Hyperwallet are expected to roll out in the first half of this year. Furthermore, the report suggests that merchants will be able to settle checkout transactions in cryptocurrencies by the end of 2025.

PayPal's expansion of PYUSD adoption is part of the company's broader strategy to diversify its payment offerings and cater to the growing demand for digital currencies. By integrating PYUSD into its products, PayPal aims to provide merchants with a more efficient and cost-effective way to make cross-border payments and settle transactions.