PayPal Holdings Inc. Chief Executive Officer Alex Chriss has signalled that the company’s stablecoin strategy will initially focus on cross-border payments, as mainstream adoption in the United States continues to face structural hurdles.
Speaking in an interview with Bloomberg TV on Thursday, Chriss acknowledged that most American consumers currently lack a compelling reason to switch to stablecoins for everyday transactions.
“From a consumer standpoint, there isn’t a real incentive to drive adoption, which is why we are starting to create things like rewards and starting to incentivize users,” Chriss said.
PayPal became the first major financial services firm to launch its own stablecoin in 2023, marking a significant milestone in the push to bridge digital currencies with traditional finance.
However, wider adoption in the domestic market has lagged, with most initial use cases concentrated in international money transfers.
“We’re excited for the future of stablecoins,” Chriss said. “The first use cases are most likely to be cross-border transactions, when you are moving money and you’re paying large fees for cross-border transactions. That is an opportunity to have a fast, secure and inexpensive mode of currency.”
The company’s strategy hinges on capturing a share of the multibillion-dollar remittance market, where cross-border payment fees often remain high, particularly for small businesses and individual consumers sending funds abroad. By leveraging stablecoins, PayPal aims to offer a faster and lower-cost alternative to conventional transfer channels.
Despite modest early traction, Chriss said PayPal is actively working to build more practical incentives for US customers to use stablecoins in daily transactions. These include new rewards programmes designed to attract consumers who may otherwise see little benefit in switching from existing digital payment methods.
The outlook for stablecoins could receive a boost from the so-called Genius Act, a piece of legislation that passed the US Senate earlier this month and could create a clearer regulatory framework for digital assets.
Chriss confirmed PayPal played an active role in shaping the bill and expects it to drive more crypto spending if enacted.
“We were a big part of the Genius Act, we were helping shape that,” Chriss noted, underlining PayPal’s continued push for regulatory clarity as it seeks to expand its role in the growing digital currency ecosystem.
While stablecoins have gained traction globally as a medium for crypto trading and on-chain transactions, their adoption in mainstream consumer payments remains nascent.
PayPal’s cross-border focus could help unlock wider usage if the company’s strategy delivers on lower fees and improved transaction speeds for global remittances.
The payments giant has consistently sought to position itself at the intersection of traditional finance and the digital asset economy, making it one of the most prominent players among legacy payment processors moving into the crypto space.
As competition intensifies in the digital payments sector, PayPal’s ability to scale stablecoin usage beyond niche use cases will be closely watched by industry analysts and investors alike.
