PayPal plans to introduce payment financing (PAYFI) for small and medium-sized businesses

PayPal CEO Alex Chriss announced today that he plans to bring PayPal’s Stablecoin Pyusd to the Stellar Network, offering fast, affordable cross-border payments and reach a large group of developers. According to the company’s press conference, they are awaiting approval from the NYDFS.

PayPal plans to upgrade Stablecoin for real payments, commercial and microfinance by taking advantage of the star’s network speeds, low transaction costs and ease of integration. Stellar is designed for speed, low-cost payments, and real-world utilities. Chris believes blockchain technology companies will unlock additional options for existing expansions in Ethereum and Solana.

PayPal plans to introduce payment financing (PAYFI) for small and medium-sized businesses

PayPal users benefit from Stellar’s network infrastructure spanning 170 countries, with multiple on and off ramps, digital wallets and integrations with local Fiat currency and banking systems. According to company reports releaseThis is perfect for PayPal’s goal of reaching a wider group of developers and opening up more opportunities. Target audiences are emerging markets where traditional financial systems are slow, expensive, or inaccessible.

Pyusd will come to @stellarorg to reach the wider group of developers and unlock new opportunities for Stablecoin. More blockchain, greater access – and we are not stopped now. pic.twitter.com/ddfpb9jbzm

– Alex Chriss (@acce) June 11, 2025

The partnership will also introduce a payment financing model (Payfi), allowing small and medium-sized businesses (SMBs) facing delayed accounts receivable or pre-implementation requirements, directly accessing the star wallet to real-time working capital on PYUSD loans. Companies can use these funds to settle suppliers, manage inventory and cover other expenses with the added benefits of immediate settlement and transparency. In addition to speculative transactions, liquidity providers are permitted to participate in funding options and benefit from actual activities.

May Zabaneh, vice president of PayPal’s Blockchain, Crypto and Digital Currency Group, said Stablecoins has long been seen with the Crypto Killer app because it combines the power of blockchain with the stability of Fiat currency. He believes that by working with StellAR, it will advance the use of the technology and benefit all users in key areas of cross-border payments.

NYDFS delays risk

Danelle Dixon, CEO of Stellar Development Foundation, has repeatedly stated that Stellar is a massive, fast, low-cost, reliable global payments network. He added that bringing PYUSD to more than 170 countries will transform its retention into practical financial tools that millions of everyday users and merchants can use. He confirmed that the partnership aims to bring stable digital currency to small and medium-sized businesses and individuals across the world.

I’ve got PayPal recently Partnership Bypassing the banking system from Gebuana Lhuillier (Philippines) and Yellow Card (Africa) will provide access to 3,500 and 25,000 touchpoints, respectively. Analysts believe these partnerships can push PayPal into your transfer choice by reducing fees by up to 80% compared to competitors such as Western Union and MoneyGram. However, PYUSD faces challenges such as scams, hacking and crypto reputations for market crashes, which could thwart investors’ trust.

NYDFS approvals could delay the process, citing concerns about money laundering and consumer protection. Stellar’s decentralized nature lacks the centralized control that banks and regulators prefer. Also, exchange PYUSD holders may face price volatility if their redemption partner fails to buy back the token.

Pyusd faces competition from Circle’s USDC, backed by Goldman Sachs. It already dominates the Stablecoin market with $50 billion in circulation. According to analysts, the pending approval of NYDFS could lead PYUSD to face a hard head start competing with giants such as the USDC and USDT.

CNBC’s Mad Money host Jim Kramer said this is a high-risk, high-reward bet. If NYFDS approved and small businesses flock to Payfi, PayPal stocks could skyrocket, but if you stumble on regulations and adoption, Pyusd becomes a costly disaster.