It is a little tough to see just how much damage is done. It looks like the plant is still healthy otherwise and you may be able to just let it go as is. However, I suspect it is going to need that extra support from now on. Otherwise, you could try repotting it and burying the affected area about an inch under the soil surface as it looks like the affected area is currently right at the soil line. I always bury my peppers about an inch deeper when I repot regardless of the stem condition. But if it is still looking healthy, I would probably let it go at this point and then bury it a little deeper when it is the normal time to repot. I am assuming that you will be repotting/replanting at least one more time with that plant before it finds its permanent spot.
Bruce

Thanks Bruce! I plan on burying the damaged stem but was worried that it might get worse. Will do it now and see how it goes. And yes, it looks healthy at this time.

Ed