PayPal is going to give its USD (PYUSD) stablecoin holders in the United States a 3.7% yearly return on their accounts.
According to Bloomberg reports, the returns will be calculated daily and paid out in PYUSD each month. With the stablecoin market becoming more competitive, this campaign, which launches this summer, attempts to boost PYUSD usage.
PayPal’s Move Likely To Give PYUSD a Boost Among Investors
PYUSD is a stablecoin backed by the US dollar that was introduced in 2023 and is accessible to qualified US PayPal and Venmo customers.
Peer-to-peer transfers, conversions to US dollars, and online purchases are just a few of the transactions it can be used for.
In contrast to market leader Tether’s $143 billion USDT, PYUSD’s market share is still quite small at $868 million, despite PayPal’s substantial position in the digital payments arena.
However, now with the new move, it is likely that more and more investors will be drawn towards the stablecoin.
Also Read: Crypto.com Enables PayPal Payments for Crypto Purchases in the European Union
PayPal’s Larger Crypto Push in Tandem With Current Actions
The 3.7% yield was introduced as part of PayPal’s larger cryptocurrency push, which aims to create new payment rails in the market.
The goal is to create a new set of payment rails that are faster and less expensive, according to Jose Fernandez da Ponte, PayPal’s head of blockchain and digital currencies. ​
This move gives customers a strong incentive to own and use PYUSD within its ecosystem, putting PayPal in a position to compete more directly with other stablecoin providers and conventional banking institutions.
PayPal’s Previous Pro-Crypto Actions
PayPal is taking a number of steps to greatly increase its visibility in the crypto market.
PayPal has included the PYUSD into Hyperwallet and other parts of its worldwide payment infrastructure to enable quicker and more affordable cross-border transactions.
By integrating support for Chainlink (LINK) and Solana (SOL) on its platforms, the platform has further broadened its cryptocurrency services and given consumers more access to and flexibility with digital currencies.
Additionally, before the end of the year, PayPal intends to incorporate PYUSD into its payment ecosystem for more than 20 million small and medium-sized businesses, allowing them to pay suppliers using its soon-to-be bill-pay tool.
These calculated actions highlight PayPal’s dedication to incorporating virtual currencies into its offerings and establishing itself as a major force in the changing financial sector. ​
Also Read: LayerZero Launches Cross-Chain Transfers For PayPal Stablecoin Between Ethereum & Solana