PayPal Launches 3.7% Rewards For PYUSD Balances
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PayPal has announced plans to encourage the use of its stablecoin by offering a 3.7% annual rewards rate to U.S. users who hold PYUSD. The company said that users on both PayPal and Venmo platforms will soon be able to earn this yield on their PYUSD holdings.
The rewards will be paid in the same token and can be used for transactions with other users, international transfers, currency exchanges, or purchases with PayPal merchants.
PayPal Aims To Boost PYUSD Adoption Through Real-World Payments And Incentives
PayPal explained that PYUSD was introduced to support payments, not speculation. While stablecoins like USDT and USDC dominate the market, PYUSD currently holds a smaller share. Still, stablecoins have become more attractive due to their steady value and growing use in areas like DeFi and financial services for underbanked users.
The company stated that the goal is to drive adoption of PYUSD within its own ecosystem by offering incentives. Unlike firms such as Tether and Circle—which focus on generating income from reserves—PayPal has emphasized that its focus remains on enabling real-world payments and value exchange.
Alex Chriss, president and Chief Executive Officer of PayPal, said that stablecoins can reshape commerce by becoming the foundation of next-generation payments. He also stated that PayPal’s global network puts it in a strong position to support users in the digital economy.
The company expressed its commitment to building an innovative, commerce-focused system that includes cross-border transfers and vendor payments. It also aims to support future applications such as payouts and bill payments.
PayPal Aims To Expand Digital And Peer Payments
PayPal Holdings, Inc. is an American multinational financial technology company that runs an online payments system in most countries where digital money transfers are supported.
The company provides an electronic option to replace traditional paper-based methods like checks and money orders. It operated as a payment processor for online sellers, auction platforms, and other commercial users, charging fees for its services.
Venmo, owned by PayPal, is described as a mobile payment service designed for users who want to split costs easily. It allowed users to send and receive money through a mobile app, with both parties needing to be based in the United States.
The platform also functioned like a small social network, showing public transactions with short messages and emoticons. In one report, Venmo is said to process hundreds of billions of dollars in transactions and has generated significant revenue. While users have been able to view activity on the Venmo website, they have not been able to complete payments there.
