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Shares of PayPal Holdings Inc. PYPL are trading lower Wednesday after Coinbase unveiled a new stablecoin-based payments stack that could challenge PayPal’s core position in the digital payments market.
What To Know: Coinbase’s new product, called Coinbase Payments, introduces a full-stack infrastructure for merchants and platforms to accept payments using USDC, a widely used stablecoin pegged to the U.S. dollar. The system is designed to offer instant, 24/7 payments with low fees, and doesn’t require any blockchain expertise.
According to PYPL are trading lower Tuesday after Coinbase unveiled a new stablecoin-based payments stack that could challenge PayPal’s core position in the digital payments market. Coinbase’s new product, called Coinbase Payments, introduces a full-stack infrastructure for merchants and platforms to accept payments using USDC, a widely used stablecoin pegged to the U.S. dollar. The system is designed to offer instant, 24/7 payments with low fees and no need for blockchain expertise. According to Coinbase, the product is already live with Shopify, giving it immediate reach to millions of online sellers. The offering includes infrastructure layers for both consumers and merchants, with open-source smart contracts handling secure on-chain execution. The product aims to simplify stablecoin integration and improve access to global, low-cost payments — something that has long been a pain point for many platforms using traditional rails like PayPal. Investors appear concerned that Coinbase’s move could eat into PayPal’s market share, especially among merchants looking for faster and cheaper alternatives. Stablecoins processed $30 trillion in settlements last year, tripling year-over-year, indicating rapid adoption in digital commerce. The announcement positions Coinbase to become a significant player in that space. As a result, PayPal stock was down 3.3% at $68.34 in afternoon trading.”>Coinbase, the product is already live with Shopify, giving it immediate reach to millions of online sellers.
The offering includes infrastructure layers for both consumers and merchants, with open-source smart contracts handling secure on-chain execution. The product aims to simplify stablecoin integration and improve access to global, low-cost payments, which has long been a pain point for many platforms using traditional rails like PayPal.
Investors appear concerned that Coinbase’s move could eat into PayPal’s market share, especially among merchants looking for faster and cheaper alternatives. Stablecoins processed $30 trillion in settlements last year, tripling year-over-year and indicating rapid adoption in digital commerce. The announcement positions Coinbase to become a significant player in the space, and potentially take share from competitors.
PYPL Price Action: PayPal shares were down 3.52% at $68.18 at the time of publication Wednesday, according to Benzinga Pro.
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PYPLPayPal Holdings Inc
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