PayPal is taking steps to boost the adoption of its stablecoin by offering US users an annual rewards rate of 3.7% on their holdings.
Starting this summer, PayPal and Venmo users will be able to earn rewards on their PYUSD balances. These rewards can be used immediately to send to other users, fund international transfers, convert to fiat, or make purchases at millions of merchants utilizing PayPal Checkout.
In 2023, PayPal made headlines as the first major financial entity to launch a stablecoin, named PYUSD. Although it currently holds less than one percent of the stablecoin market—significantly behind industry leaders like Tether’s USDT and Circle’s USDC, according to CryptoQuant—the company is aggressively promoting PYUSD amid a rapidly growing market and a favorable regulatory environment.
In conjunction with the rewards program, PayPal has partnered with Coinbase to waive fees on transactions related to the stablecoin. This integration enables merchants on PayPal’s network to settle transactions directly in PYUSD, bypassing traditional financial systems.
Alex Chriss, president and CEO of PayPal, stated, “At PayPal, we believe stablecoins have the power to reshape the future of commerce as the foundation for the next generation of payments. By combining this innovative technology with our extensive global network, we aim to help all users thrive in the world economy.”
He added, “Consumers and businesses are currently using PYUSD for commerce, crypto, peer-to-peer transfers, and B2B payments. We are committed to fostering an innovative, commerce-ready ecosystem by facilitating settlements for cross-border transfers, vendor payments, and, in the future, additional use cases such as payouts and bill payments.”