PayPal integrates PYUSD into more payment services
PayPal to expand PYUSD for vendor payments in 2025
PayPal, the world’s largest international electronic payment system, founded in 1998, plans to expand the use of its stablecoin, PYUSD, across its products this year. The company aims to enhance the platform’s functionality for millions of merchants, making digital payments more seamless.
According to Bloomberg, PayPal is working on integrating PYUSD into various services, including vendor payments and international transactions.
PYUSD for merchant payments
By the end of 2025, PayPal plans to offer more than 20 million small and medium-sized businesses the ability to use PYUSD for vendor payments through a new bill-pay service. This initiative will allow merchants to invite suppliers into the PayPal ecosystem, ensuring fast and efficient transactions while avoiding the complexities of traditional payment systems.
“Many of these payments will be cross-border, as U.S. merchants seek to pay vendors and suppliers abroad,” said Michelle Gill, general manager of PayPal’s small business and financial services division, during an investor day event.
Gill emphasized that eliminating currency conversions and reducing transaction costs were key motivations for launching this initiative.
“The idea was: Can we simplify this using PYUSD’s infrastructure, eliminating currency conversion, friction, and delays?” she added.
The growing role of PYUSD
PayPal launched its stablecoin last year and successfully completed its first business transaction using PYUSD. Unlike traditional cryptocurrencies, stablecoins like PYUSD are pegged 1:1 to the U.S. dollar, ensuring price stability for businesses.
Beyond vendor payments, PayPal is integrating PYUSD into Hyperwallet, a mass payment system acquired by the company in 2018 for $400 million. Hyperwallet helps businesses send payouts to freelancers, contractors, and sellers worldwide. PYUSD payouts are expected to go live in the first half of 2025, making digital transfers more accessible and cost-effective.
Additionally, PayPal is preparing to allow merchants to settle PayPal Checkout transactions in cryptocurrencies, strengthening its position in blockchain-powered financial solutions.
PayPal CEO’s vision for the future
PayPal CEO Alex Chriss reaffirmed the company’s commitment to widespread blockchain adoption.
“We’ve been talking about blockchains for about a decade now—the concept never becomes real until you can actually spend it,” Chriss said in an interview with Bloomberg. “And I think that’s exactly what we’re enabling.”
