PayPal Is Launching a Full-Scale Mainstream Adoption for Its Stablecoin, PYUSD, Aiming to Revolutionize Merchant Transactions

input: PayPal is launching a full-scale mainstream adoption for its stablecoin, PYUSD, aiming to revolutionize merchant transactions. According to Bloomberg

PayPal is fully engaging in mainstream adoption for its stablecoin, PYUSD, aiming to revolutionize merchant transactions.

During the Fintech23 conference in San Francisco, Michelle Gill, General Manager of PayPal’s Small Business and Financial Services Group, revealed that the payment giant plans to integrate PYUSD into its bill-pay product by 2025, allowing its 20 million+ small-to-medium merchants to pay vendors seamlessly.

Highlighting the difficulties faced by small businesses with cross-border payments, Gill posed the question, “How can we facilitate that on PYUSD rails so as not to have the currency conversion, the friction, as well as time?”

Earlier this year, PayPal announced its intention to introduce PYUSD for Hyperwallet, facilitating global payouts to contractors and freelancers by the first half of the year. By this year, merchants can also settle checkout transactions using cryptocurrencies.

“We’re trying to make blockchain technology a practical reality for spending,” said CEO Alex Chriss at the TechCrunch Session 73 event.

Recent tests, conducted by the Center for Economic Policy Research, demonstrated that using stablecoins for cross-border transactions resulted in recipients receiving 40% more in their local currency compared to traditional methods, due to faster settlement and better exchange rates.

Moreover, PayPal’s PYUSD, backed by highly liquid assets, has already surpassed a $500 million market cap, signaling strong adoption.

Edwina Aoki, CTO of Digital Currencies at PayPal, emphasizes the potential of stablecoins to disrupt outdated payment systems like SWIFT.

“We’re looking at the problems that exist today and how we can solve them with this technology,” Aoki said.

Stablecoins Like PayPal’s PYUSD The ‘iPhone Moment’ for Fintech?

Edward Woodford, Founder and CEO of Zero Hash, highlighted the rapid expansion of stablecoin accessibility: “Over the last 12 months, integrations by Nubank, Revolut, Robinhood, and PayPal have brought stablecoins to the core banking experience of close to one billion individuals.”

The top exec drew similarities between the iPhone’s distribution and the current reach of stablecoins like USDC and USDT.

He explained that just as the iPhone’s widespread adoption enabled the creation of the App Store, the broad distribution of stablecoins is now fostering the development of new applications by fintech and payment companies.

“We’re at the iPhone 3GS moment for stablecoins and at the App Store moment for fintech and payments companies to build new categories and use cases on Blockchain,” stated Woodford.

Following PayPal’s PYUSD integration into its bill-pay product by 2025, Ripple President Monica Long remarked, ” Sounds familiar”.

This observation signals Ripple’s own engagement in the space, especially with the recent launch of RLUSD, which saw a 37% volume surge despite recent market downturns.