PayPal (PYPL.US) plans to increase the adoption rate of stablecoins this year to accelerate cross-border transactions.

US digital payment giant PayPal (PYPL.US) plans to integrate its stablecoin into more products this year to meet the needs of all merchants through a single platform. PayPal aims to provide its stablecoin PYUSD to over 20 million small and medium-sized merchants by the end of this year as an option for supplier payments. Michelle Gill, General Manager of Small Business and Financial Services at PayPal, said this move is intended to simplify transactions by inviting merchants to have their suppliers join the PayPal network. Gill said at PayPal's Investor Day event on Tuesday, "We anticipate a lot of payments to be cross-border as US merchants seek to pay suppliers overseas. The key is whether we can achieve this goal on the PYUSD track, thereby avoiding currency exchanges, frictions, and timing issues." PayPal completed its first commercial transaction using PYUSD last year. A stablecoin is a currency designed to track a fiat currency one-to-one, and PYUSD is pegged to the US dollar. In addition, PayPal plans to add PYUSD as a global payment option through Hyperwallet, a company that helps organizations make large-scale payments to contractors, freelancers, or sellers worldwide. PayPal acquired Hyperwallet for $400 million in 2018. PayPal plans to launch PYUSD payments in the first half of this year. By the end of 2025, the business will also allow merchants to settle PayPal payments with cryptocurrencies. PayPal CEO Alex Chriss said, "We've been talking about blockchain for ten years - it's only when you actually start using blockchain that these concepts become a reality. And I think that's what we are achieving." It is reported that PayPal unveiled a roadmap for profitability growth over the next few years at Investor Day, with expectations of improving transaction business profit margins and earnings per share, especially with the new management team continuing to drive business integration processes, and the company forecasting a long-term growth rate of adjusted earnings per share of up to 20%.