Digital Payment Giant PayPal Announces 2025 Plans for Its Stablecoin PYUSD! It Has Raised Its Targets!

PayPal is accelerating efforts to integrate its stablecoin PYUSD into more of its products this year in an effort to streamline digital payments and reduce transaction friction for merchants around the world.

PayPal to Expand Stablecoin Usage by End of 2025, Targeting Cross-Border Payments

PayPal plans to offer PYUSD as a payment option for over 20 million small and medium-sized businesses by the end of 2025, allowing them to pay merchants through PayPal’s upcoming invoice payment product.

The initiative is designed to simplify cross-border transactions by reducing currency conversion costs and delays, according to Michelle Gill, PayPal's general manager of small business and financial services.

“Most of the payments that we expect will be cross-border because merchants in the U.S. want to pay vendors and suppliers abroad,” Gill told Bloomberg in an interview. “The thesis was: Can we facilitate that on the PYUSD rails so that there’s no currency conversion, no friction, no time loss?”

PayPal completed its first transaction using PYUSD last year. Launched in August 2023 and pegged to the US dollar, the stablecoin aims to increase payment efficiency across a variety of use cases.

In addition to merchant payments, PayPal will integrate PYUSD into Hyperwallet, a subsidiary that facilitates bulk global payments to freelancers, contractors, and vendors.

The company has launched PYUSD payments in the first half of 2024. PayPal will also expand its digital asset payment options by enabling cryptocurrency payments for payment transactions by the end of 2025.

PayPal CEO Alex Chriss has emphasized the importance of making blockchain technology more practical for everyday transactions.

“We’ve been talking about blockchains for about a decade. The concept of these things never really becomes real until you actually start spending them, and I think we’re making that possible,” he said.

With these developments, PayPal is at the forefront of stablecoin adoption in mainstream commerce, strengthening its commitment to simplifying digital payments and promoting blockchain-based financial solutions.

*This is not investment advice.