Is PayPal’s New Fiat Platform a Stablecoin Killer?
PayPal plans to launch a new platform called PayPal World this fall, linking domestic digital wallets to its global network. The platform will allow users from India’s UPI, China’s WeChat Pay, and Brazil’s Mercado Pago to transact with PayPal or Venmo merchants without needing new accounts or cards. It aims to simplify cross-border money transfers for nearly two billion users. The system offers fast settlement and currency conversion but does not utilize blockchains or tokenized assets. PayPal emphasizes its readiness for future commerce, supporting in-store, online, and peer-to-peer transactions. The platform will initially focus on interoperability with existing merchants. PayPal is also expanding its stablecoin, PYUSD, across multiple blockchains following a regulatory clearance from the SEC. While some view PayPal World as a bridge between traditional fiat systems, others argue it may not fully address the advantages offered by stablecoins, particularly in micro-payments and regions with limited banking access.
