PayPal expands stablecoin access to 70 markets

PayPal is expanding access to its dollar-backed stablecoin PYUSD to users in 70 markets beyond the US.

Users in newly supported countries can buy, hold, send and receive PYUSD in PayPal accounts and transfer the token to third-party crypto wallets or convert it to local currency.

PayPal launched PYUSD in the US in 2023, and said the token is issued by Paxos under US regulatory oversight and is backed by dollar deposits and short-term US Treasuries.

PayPal said merchants can access PYUSD payment proceeds within minutes rather than days, and May Zabaneh, senior vice president and general manager of crypto at PayPal, told CoinDesk the move shows stablecoins can lower costs and speed settlement.

Stablecoins are led by Tether’s USDT and Circle’s USDC, while PYUSD’s market cap is roughly US$4 billion.

PayPal said the rollout covers markets in Asia Pacific, Europe, and Latin America, including Singapore and the UK, with more countries to be added in the coming weeks.

🔗 Source: CoinDesk

🧠 Food for thought

Implications, context, and why it matters.

This expansion matters more for features than for geography in many markets

Across 70 new markets, the change often adds new account functions, not only another currency option.
In Peru, users previously withdrew funds in local currency, then paid cross-border transfer fees when receiving money from abroad 1.
With PYUSD, users can hold a dollar-denominated balance inside PayPal wallets. That option was missing in some places such as Malawi, where inbound transfers could not stay in the wallet and instead went straight to a bank account 1.
PayPal pushes longer-term holding through rewards for eligible users, including a U.S. program that offers a 4% annual rewards rate on PYUSD balances 1.

PayPal aims to bring crypto into everyday business finance

PayPal frames PYUSD as a practical tool for businesses, rather than a bet on price swings.
Quicker settlement can move PYUSD proceeds to merchants in minutes, rather than days or weeks. That can help working capital and cash flow 2.
Demand already exists. Research reports that 39% of U.S. merchants accept cryptocurrency, with higher interest among Millennials and Gen Z 3.
PayPal also targets setup friction. Research reports that 90% of merchants would try crypto if it felt as easy as card payments, plus another 90% who say they would likely accept it if setup matched accepting credit cards 3.