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PayPal Expands PYUSD Integration in 2025 – Can It Keep Up with USDT and USDC?
In a recent announcement, PayPal has revealed plans to expand the integration of its own stablecoin, PYUSD, across various products in 2025. This move positions the payments giant as a challenger to dominant players like Tether (USDT) and Circle’s USDC.
According to an interview with Bloomberg, Michelle Gill, General Manager of PayPal’s small business and financial services division, emphasized the potential for cross-border transactions using PYUSD. The platform aims to facilitate seamless global payments for vendors and suppliers abroad, eliminating the need for currency conversion and subsequent friction.
In a significant step towards broader stablecoin adoption, PayPal is set to integrate PYUSD into its Hyperwallet platform, allowing freelancers and contractors to receive payouts seamlessly. This development follows PayPal’s first successful business transaction using PYUSD in 2024, demonstrating its commitment to expanding digital asset utility.
Furthermore, PayPal plans to further enhance its crypto integration by enabling merchants to settle PayPal checkout transactions in digital assets by the end of 2025. As stated by CEO Alex Chriss, “We’ve been talking about blockchains for like a decade now — the concept of these things never becomes real until you can start to spend it. And I think that’s what we’re enabling.”
The stablecoin market is experiencing intensified competition as leading players aggressively expand their reach amidst evolving regulatory frameworks. Tether (USDT) has shifted its focus to crypto-friendly regions like El Salvador, while Circle’s USDC has leveraged the Solana [SOL] memecoin surge to nearly double its market share over the past year. Additionally, XRP has entered the fray with RLUSD – A stablecoin now available on Ethereum and XRPL, boasting an initial supply of 120 million.
Despite these challenges, PayPal’s move is seen as a significant step towards increasing adoption and competition in the stablecoin market. However, PYUSD faces stiff competition from dominant players like USDT and USDC, which recorded transaction volumes of $415.61 billion and $197.37 billion, respectively, in February 2025.
According to VisaOnChainAnalytics, these figures total a staggering $615 billion, dwarfing PYUSD’s modest $1.24 billion. Furthermore, the market capitalization of PYUSD has seen a decline since its peak in August, currently standing below $500 million.
It remains to be seen whether PayPal can overcome these challenges and establish PYUSD as a viable alternative.
Source: https://ambcrypto.com/paypal-expands-pyusd-integration-in-2025-can-it-keep-up-with-usdt-usdc
