PayPal announced plans to expand the use of its stablecoin PYUSD beyond the crypto ecosystem, focusing on B2B and cross-border commercial payments. CEO Alex Chriss highlighted that 20 million merchants could benefit from this innovation.
PayPal, one of the world’s leading digital payments platforms, is working on expanding the use of its stablecoin PYUSD into enterprise use cases. During its first investor day under the leadership of Alex Chriss, the company detailed its plans to integrate PYUSD into B2B and mass payments, seeking to offer a more efficient solution for commercial transactions.
What is PYUSD?
PYUSD is a stablecoin pegged to the US dollar, which was launched in 2023 and has so far been used primarily within the crypto ecosystem. However, its potential to streamline cross-border payments and reduce costs in business operations has caught the attention of the company, which is looking to consolidate its position in the digital payments market.
TRADE WITH STABLECOINSIt is worth noting that in October, PayPal conducted its first B2B transaction using its stablecoin in collaboration with Ernst & Young LLP. This operation reflected the company's interest in demonstrating the practicality of PYUSD in corporate environments.
Beyond the crypto ecosystem
During the event, Alex Chriss, who was interviewed by Bloomberg, he highlighted the importance of removing barriers between platform-agnostic products to deliver a more seamless solution to customers. He said the company was working to unify their offerings to provide a more cohesive experienceWithin this framework, the PYUSD stablecoin emerges as a key tool that can be used in commercial and mass payments. "The idea is to facilitate transactions without the friction associated with currency exchange or traditional processing times.", the executive explained.
Chriss also highlighted that the more than 20 million merchants using PayPal could benefit from this innovation, especially in cross-border transactions, where foreign exchange fees are often a significant obstacle.
The first B2B payment with PYUSD
As mentioned, last October, PayPal completed its first B2B transaction using the PYUSD stablecoin. The transaction involved Ernst & Young LLP and was processed through SAP SE’s Digital Currency Hub, a platform that enables instant and seamless payments using digital currencies.
While the exact amount of the transaction was not disclosed, this event marks an important step in the adoption of the stablecoin in business environments. The transaction demonstrated how PYUSD can simplify and streamline payments between companies, removing the barriers associated with traditional transactions. Its completion has strengthened PayPal's position in the digital payments market and opened the door to new opportunities for companies looking to reduce costs and improve efficiency in their operations.
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PayPal also plans to expand the use of PYUSD in mass payments through its Hyperwallet platform, acquired in 2018, which allows payments to contractors, freelancers and sellers worldwide. PYUSD is expected to become a direct payment option on this platform before the end of the second quarter of 2025.
This functionality is similar to that implemented by Bridge, a stablecoin infrastructure recently acquired by Stripe. Bridge has proven that mass payments can be faster and cheaper using stablecoins. By matching or surpassing this capability, PayPal seeks to consolidate its leadership in the global payments market.
Additionally, the company aims to enable merchants to use PYUSD to settle transactions with suppliers through its bill payment service. The integration would reduce costs associated with international transactions and facilitate the adoption of PYUSD among merchants and their business partners.
The future of PYUSD in the cross-border payment market
PayPal is banking on the expansion of PYUSD as a key solution for cross-border payments, a sector that has traditionally been slow and costly. With PYUSD, businesses can transact internationally without incurring foreign exchange fees, which will significantly reduce costs and speed up settlement times.
LINK CARD AND EARNIn conclusion, PayPal is betting heavily on making PYUSD an essential tool for business and cross-border payments, with the aim of leading the transformation of the financial sector through the adoption of stablecoins.
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