PayPal is set to boost adoption of its PYUSD stablecoin by offering US users an annual rewards rate of 3.7% on their holdings. Launching this summer, PayPal and Venmo users will be able to earn rewards on their PYUSD balances, with immediate access to use the rewards for sending money, funding international transfers, exchanging for fiat, or making purchases at millions of merchants through PayPal Checkout.
Since its 2023 launch, PYUSD — the first stablecoin issued by a major mainstream financial player — has struggled to gain a significant share of the market, accounting for less than 1% compared to dominant players like Tether’s USDT and Circle’s USDC, according to CryptoQuant. However, with stablecoins benefiting from a supportive regulatory climate under the Trump administration, PayPal is ramping up efforts to push PYUSD into broader usage.
In addition to the new rewards programme, PayPal has partnered with Coinbase to waive fees on transactions connected to PYUSD, further removing barriers for users. The stablecoin is also being positioned for merchant settlement, allowing businesses on PayPal’s network to bypass traditional financial rails and settle transactions directly in PYUSD.
Alex Chriss, president and CEO of PayPal, states: “At PayPal, we believe stablecoins have the power to reshape the future of commerce as the foundation for the next generation of payments. Combining this innovative technology with our expansive global network allows us to help all users thrive in the world economy.”
He adds: “Consumers and businesses use PYUSD today for commerce, crypto, peer-to-peer transfers, and B2B payments. We’re demonstrating our commitment to an innovative, commerce-ready ecosystem by enabling it for the settlement of cross-border transfers, vendor payments, and in the future for additional payment use cases like payouts and bill pay.”