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PayPal PYUSD Stablecoin Expands to 20M Merchants—A Threat to USDT?
PayPal has recently expanded its PYUSD stablecoin to a staggering 20 million merchants worldwide, marking a significant step in the company’s bid to compete with major players like Tether (USDT). The move aims to offer a more seamless and efficient payment experience for cross-border transactions.
As part of this strategy, PayPal plans to introduce its PYUSD stablecoin to over 20 million small-to-medium-sized merchants who can utilize the upcoming bill-pay product to pay vendors in the final quarter of 2025. This integration will enable these merchants to make international payments without facing exchange fees or complicated transaction processes.
Michelle Gill, General Manager for PayPal’s Small Business and Financial Services Group, emphasized the benefits that merchants can gain by using PYUSD. According to her, the stablecoin eliminates all exchange fees, streamlining payment transactions across borders. This feature will significantly benefit US-based merchants who need to make payments to their overseas vendors in a more efficient manner.
PayPal has already executed an initial PYUSD transaction and has launched its expansion through Hyperwallet’s payment system, which connects freelancers and contractors worldwide. The integration is expected to start processing PYUSD payouts by mid-2025.
The PYUSD stablecoin’s expanded reach poses a significant threat to Tether (USDT) as it offers a more reliable alternative for international transactions. With this move, PayPal has effectively entered the fray of major players in the stablecoin market, further amplifying competition and putting pressure on USDT to adapt to changing market conditions.
The intensification of competition within the digital payment ecosystem is set to have far-reaching implications. Analysts predict that Bitcoin may experience significant price fluctuations as indicators suggest it might be nearing important market movements. As a result, it is crucial for investors to conduct thorough research and consult with financial advisors before making investment decisions.
In related news, CryptoQuant CEO has predicted a selective alt season, highlighting which coins have the potential to soar in 2025.
