PayPal (PYPL.US) is planning to increase stablecoin adoption this year to accelerate cross-border transactions.

Market IntelTuesday, Feb 25, 2025 6:40 pm ET
1min read

PayPal (PYPL.US) is planning to integrate its stablecoin into more products this year to meet the needs of all merchants through a single platform. PayPal aims to offer PYUSD, its stablecoin pegged to the US dollar, to its 20 million small and medium-sized merchants by the end of this year as a payment option to suppliers, said Michelle Gill, managing director of PayPal's small business and financial services group. The move is aimed at allowing merchants to invite their suppliers to join the PayPal network to simplify transactions, Gill said at the company's investor day on Tuesday. "We expect many of these payments to be cross-border, as US merchants are looking to pay their suppliers overseas," Gill said. "The key is, can we do this on the PYUSD rails, avoiding currency exchange, friction and time?" PayPal completed its first commercial transaction using PYUSD last year. A stablecoin is a digital currency designed to track one-to-one with a fiat currency. PayPal also plans to add PYUSD as a global payment option through Hyperwallet, a company that helps organizations pay contractors, freelancers or sellers around the world. PayPal acquired Hyperwallet for $400 million in 2018. PayPal plans to launch PYUSD payments in the first half of this year. By the end of 2025, the business will also allow merchants to settle PayPal payment transactions in cryptocurrency. "We've talked about blockchain for 10 years - it's only when you actually start using it that these concepts become real," said PayPal CEO Alex Chriss. PayPal is expected to release a detailed roadmap for its earnings growth in the coming years at its investor day, as the new management team continues to push forward the integration process. The company's transaction business margin and EPS are expected to continue to improve in the coming years, especially as it expects the adjusted EPS growth rate to be as high as 20% in the long term.