**PayPal Expands PYUSD: A Friendly Solution for 20 Million Merchants to Pay International Vendors by Late 2024**
PayPal is set to empower 20 million merchants to pay international vendors using its dollar-backed stablecoin, PYUSD, by late 2024, eliminating the hassles of currency conversions and delays. The company plans to introduce PYUSD payouts through Hyperwallet by mid-2024, making it easier for businesses to send mass payments to global freelancers and contractors. This year, PayPal Holdings Inc. is broadening the reach of PYUSD across various services, aiming to simplify cross-border transactions for small and midsize businesses on its platform.
A new bill-pay feature, expected to launch by late 2024, will enable merchants to send payments to suppliers using PYUSD. Michelle Gill, head of PayPal’s small business division, highlighted the initiative’s goal of minimizing delays and costs associated with currency exchanges, especially for international transfers. “Many of the payments we anticipate will be cross-border, as U.S. merchants look to pay vendors and suppliers overseas,” Gill shared in an interview with Bloomberg during PayPal’s investor day on Tuesday. “The idea was: Can we facilitate this on PYUSD rails to avoid currency conversion, friction, and time?”
The strategy includes inviting vendors to join PayPal’s network, allowing for direct transactions without intermediaries. Gill emphasized that cross-border payments are a priority, given the increasing collaboration between U.S. businesses and international partners. Last year marked a milestone for PayPal as it processed its first commercial PYUSD transaction. Launched in 2023, the stablecoin maintains a 1:1 ratio with the U.S. dollar.
Moreover, PayPal plans to integrate PYUSD into Hyperwallet, a payout service it acquired in 2018. This enhancement, anticipated by mid-2024, will enable organizations to distribute funds globally to contractors and freelancers using the stablecoin. In addition, the company has confirmed that merchants will be able to settle checkout payments with cryptocurrencies by 2025. CEO Alex Chriss emphasized the importance of practical applications over theoretical concepts, stating that the true value of blockchain lies in its real-world usability.
These initiatives align with PayPal’s broader mission to consolidate financial tools for businesses. By blending traditional payment systems with innovative blockchain-based solutions, the company aims to tackle the operational challenges faced by merchants. Analysts from ETHNews suggest that this approach could simplify complex workflows, although successful adoption will depend on vendor participation and regulatory clarity.
“We’ve been discussing blockchains for about a decade now — the concept only becomes tangible when you can actually start using it,” PayPal CEO Alex Chriss remarked in an interview with Bloomberg. “And that’s precisely what we’re enabling.” The success of PYUSD will ultimately depend on whether businesses see it as a trustworthy alternative to traditional cross-border payment methods. For now, the focus remains on testing and scaling these features within a controlled environment.
