PayPal is significantly widening the reach of its branded stablecoin PYUSD. Starting this month, customers in 70 countries—a subset of roughly 200 markets where PayPal operates—can hold PYUSD in their wallets, according to May Zabaneh, senior vice president and head of crypto at PayPal. New additions include Uganda, Colombia, Peru, and others across South America, Africa, and Asia. Previously, the stablecoin was limited to users in the U.S. and U.K.
Earn Rewards While Cutting Cross-Border Fees
Alongside holding and transferring PYUSD, international users can earn rewards on their stablecoin balances. In the U.S., existing holders earn 4% annually. Zabaneh emphasized the expansion goes beyond access: it eases cross-border transfers, especially in regions with high transaction costs. Before this move, users in countries like Peru could only withdraw funds in local currency, incurring conversion costs. Now PYUSD lets recipients retain value in U.S. dollars, slashing cross-border fees.
In Malawi, where PayPal previously required transfers to go directly to bank accounts, PYUSD enables users to hold funds within their PayPal wallets, offering both balance and earnings potential. The fintech is also integrating PYUSD into broader business products, including payouts for platforms like YouTube and internal international transfers across PayPal entities.
Market Cap Tops $4.1B, Real-World Use Cases Emerge
Since its launch in summer 2023, PYUSD's market capitalization has grown over fivefold to $4.1 billion, following a temporary halt due to regulatory scrutiny of its launch partner in New York. Beyond consumer wallets, PYUSD is powering real-world applications. Through a partnership with TCS Blockchain, trucking companies can now settle invoices same-day on-chain, reducing costs and speeding cash flow. Developers can also issue PYUSDx tokens—U.S. dollar–pegged digital currencies backed by PYUSD reserves—enabling faster deployment of branded stablecoins with cross-chain capabilities.
These developments come amid reports that Stripe is exploring a potential acquisition of PayPal, highlighting intensifying competition in digital payments. Together, these moves underscore PayPal's strategy to make PYUSD not just a global wallet asset but a versatile tool for businesses, developers, and cross-border transfers.