PayPal is placing greater emphasis on stablecoins after reporting solid second quarter earnings and restructuring its business to give cryptocurrency its own dedicated division.
The payments giant processed a record $486.4 billion in total payment volume during the second quarter, representing a 10% increase from the same period last year. Alongside its earnings report, the company announced the creation of a new Payment Services and Crypto division, highlighting its growing commitment to digital assets.
The new business unit will operate alongside Checkout Solutions and PayPal and Consumer Financial Services and Venmo. PayPal also identified stablecoins as one of its three key innovation priorities, alongside agentic commerce and identity and biometric technologies.
Revenue Climbs Despite Crypto Investment Losses
PayPal generated $8.68 billion in revenue for the quarter, a 5% increase year over year. Adjusted earnings reached $1.38 per share, outperforming analyst expectations of about $1.28 per share.
Transaction margin dollars rose 1% to $3.9 billion, while adjusted free cash flow reached $1.83 billion. Following the strong results, the company increased its full year transaction margin outlook to approximately $15.6 billion and raised the lower end of its adjusted earnings per share forecast to around $5.38.
The company reported $81 million in losses tied to strategic investments and cryptocurrency assets held for investment during the quarter, compared with $74 million in the first quarter. These losses were excluded when calculating adjusted earnings. PayPal noted that the same investment portfolio contributed approximately $0.14 per share to its full year 2025 GAAP earnings.
PayPal’s stablecoin, PYUSD, had a circulating supply of about $2.8 billion by the middle of July, down from more than $4 billion in March. On July 9, the token launched natively on the Polygon network through issuer Paxos. The company says PYUSD is now available across 70 markets.
In December, YouTube began paying eligible creators in the United States using PYUSD. However, research from CoinGecko indicates that PYUSD and Societe Generale’s EURCV still account for only a small share of the stablecoin market, while USDT and USDC continue to dominate with a combined 93.5% of the fiat backed stablecoin supply.
Leadership Focuses on Efficiency and AI
Chief Executive Officer Enrique Lores, who assumed the role on March 1 following Alex Chriss’ departure, has outlined an ambitious cost saving strategy aimed at reducing expenses by at least $1.5 billion over the next two to three years. The company expects to achieve roughly $400 million of those savings by the end of this year.
The efficiency plan extends through 2029 and centers on three priorities: simplifying the company’s organizational structure, improving operations and portfolio management, and accelerating the adoption of artificial intelligence, which PayPal expects will deliver about 40% of the projected savings.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
