PayPal Aims to Drive PYUSD Stablecoin Adoption Among 20 Million Merchants in 2025

PayPal Expands PYUSD Stablecoin Beyond Experimentation

PayPal is shifting its PayPal USD (PYUSD) stablecoin away from its experimental phase and into a broader business strategy.

Following a series of updates shared at the company's recent investor day in New York, executives detailed their ambitious goals for the stablecoin, including integration into both cross-border payments and existing business operations.

PYUSD Integration Into Merchants' Bill Payments

One of PayPal's key plans for PYUSD is its integration into the company's bill-pay product, which will allow merchants to pay vendors using the stablecoin.

This feature is expected to roll out later in 2025, marking a significant expansion for PYUSD.

Michelle Gill, PayPal’s General Manager for Small and Medium Enterprises, shared with Bloomberg,

"The thesis was: Can we facilitate that on PYUSD rails so as not to have the currency conversion, the friction, as well as time?"

This move will give businesses an alternative to traditional currency conversions and time-consuming international transfers.

Cross-Border Payments: Reducing Friction in Global Transactions

A major focus of PayPal's PYUSD initiative is addressing the challenges faced by U.S. merchants when making cross-border payments.

The company aims to streamline international transactions, reducing the need for currency conversion and cutting down on transaction times.

With PYUSD’s backing by U.S. dollar reserves, short-term Treasuries, and cash equivalents, PayPal’s stablecoin could offer a more efficient and cost-effective option for companies looking to engage in international business.

Future Expansion Plans for PYUSD

After launching PYUSD in August 2023, initially limited to Ethereum, PayPal has expanded the stablecoin's availability to additional blockchains.

In May 2024, support was added for Solana, followed by integration with Cardano in January 2025.

These moves are designed to make PYUSD more accessible and practical for both business transactions and everyday purchases.

Hyperwallet to Facilitate PYUSD Payouts

PayPal is also enhancing the utility of PYUSD by integrating it into Hyperwallet, a global payment service acquired in 2018.

Hyperwallet facilitates mass payouts to freelancers, contractors, and sellers worldwide.

By the end of Q2 2025, PayPal plans to allow businesses to send payments in PYUSD, further driving adoption of the stablecoin.

This expansion will give more users access to PYUSD’s benefits in global transactions, as PayPal continues to refine its strategy for incorporating digital assets.

PYUSD’s Role in PayPal’s Growth

Despite a decline in PYUSD’s market cap from over $1 billion to $704 million due to market fluctuations, PayPal remains optimistic about the stablecoin’s potential.

The company is betting on international transactions to drive future growth.

Gill noted that “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.”

With PayPal setting a target to grow its earnings by 20% by 2027, the integration of PYUSD across various platforms is seen as key to achieving this goal.

The company’s efforts to streamline cross-border payments, reduce friction in business transactions, and expand into new blockchain networks demonstrate its commitment to the future of digital currency.

PayPal CEO Alex Chriss also emphasised the long-term vision, explaining that while the company has been involved in blockchain technology for nearly a decade, only now can the concept "actually start to spend."

As the company works to integrate digital assets into its ecosystem, PYUSD is set to play an essential role in PayPal’s ongoing evolution.