Is PayPal World Threatening Traditional Crypto?"

1. PayPal World: A New “Punch” In The Global Payment Race

This fall, PayPal is officially launching PayPal World – a new payment platform that connects domestic digital wallets like UPI (India), WeChat Pay (China), and Mercado Pago (Brazil) to its global merchant network, including PayPal and Venmo.

According to CEO Alex Chriss, the goal of this platform is to simplify cross-border money transfers for nearly 2 billion global users, while expanding the digital payment ecosystem without requiring users to create new accounts or use cards.

Crypto Is “Totally Fine” While PayPal Burns the Room

2. Similar to Stablecoins, But Not Blockchain-Based

Although it doesn't use blockchain technology or crypto assets, PayPal World offers several stablecoin-like features such as:

•  - Near-instant transactions

•  - Direct currency conversion

•  - Expanded support for P2P, online, and offline payments

However, the platform still runs on traditional fiat infrastructure, using correspondent banking channels, foreign exchange spreads, and proprietary payment systems — prompting experts to question its true innovation.

3. Is PayPal World A Real Threat To Stablecoins?

While some call PayPal World a “stablecoin alternative”, experts argue it’s merely a natural progression within the traditional financial system, not a direct threat to crypto.

“It’s just a bridge between legacy systems — not a leap into the future of money,” – Gitay Shafran, founder of The Fedz (FUSD).

That said, the fact that PayPal World delivers stablecoin-like user experiences without blockchain highlights the growing competition between Web2 and Web3 platforms.

4. PYUSD Still A Strategic Piece Of The Puzzle

Simultaneously, PayPal continues to push PYUSD — its USD-backed stablecoin — with plans to expand across Ethereum, Solana, and soon Stellar blockchains.

The company even aims to onboard 20 million merchants to use PYUSD by the end of 2025 — a strong signal that it still views stablecoins as a vital part of its long-term strategy.

“Instead of dealing with currency conversion and latency, we want to simplify everything with PYUSD,” – Michelle Gill, SVP of PayPal’s Small and Medium Business division.

5. Conclusion: PayPal World — A Launchpad Or A Barrier For Stablecoins?

PayPal World clearly demonstrates the ambition of traditional financial giants to broaden their influence in global payments. By bypassing blockchain, the platform may appeal to mainstream users and countries that still prioritize fiat-based systems.

However, in underbanked regions or developing markets, stablecoins still offer superior advantages in cost, speed, and cross-chain interoperability.

Is this the future of cross-border payments — or merely a stepping stone for stablecoins to grow stronger?