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PayPal’s PYUSD Stablecoin Now Available to Over 20 Million Merchants Worldwide
In a move aimed at disrupting the traditional financial system and intensifying competition in the stablecoin market, PayPal has announced that its PYUSD stablecoin will be available to over 20 million merchants worldwide. This expansion is seen as a direct threat to Tether (USDT), a leading stablecoin provider.
PayPal’s bold move comes amid growing demand for digital payments solutions and decentralized finance (DeFi) services. The company aims to increase the adoption of its PYUSD stablecoin by leveraging its extensive network of small-to-medium-sized merchants. By integrating PYUSD into their payment systems, PayPal will become a serious competitor in the market, posing a significant challenge to USDT.
PYUSD is designed to maintain a 1:1 peg with the US dollar, ensuring that transactions are instant and cost-effective. This feature eliminates exchange fees associated with traditional payment methods, providing an attractive option for merchants. Michelle Gill, PayPal’s small business and financial services group general manager, emphasized the benefits of using PYUSD, stating it would streamline global payments and eliminate cross-border transaction costs.
As a result, USDT may face increased competition from PYUSD as more merchants opt for the latter’s cost-effective and user-friendly solution. With its massive merchant network, PayPal can tap into the vast potential of DeFi services, offering institutional clients and retail investors alike an alternative to traditional financial systems.
The move is seen as a significant shift in the market, as PayPal has long been at the forefront of digital payments innovation. By expanding PYUSD’s availability, the company will undoubtedly disrupt existing payment infrastructure and create new opportunities for businesses and individuals seeking more efficient financial transactions.
In conclusion, PayPal’s aggressive expansion into the stablecoin market underscores its commitment to disrupting traditional finance. As a result, USDT may struggle to maintain its market dominance in light of this development.
