PayPal will initiate a new program this summer that allows U.S. users to earn a 3.7% yearly reward on the PayPal USD (PYUSD) stablecoin.
According to the Bloomberg report, the rewards will be paid in PYUSD itself and credited to user accounts daily, with complete payouts each month. People can utilize those rewards for payments, transfers, or exchange them to cash.
The rewards will accrue every day and be rewarded monthly to get individuals to use PayPal’s stablecoin for transactions, PayPal’s blockchain and crypto head Jose Fernandez da Ponte said.
Right now, most stablecoins, including PYUSD, are used for crypto trading. But PayPal sees them as the future of faster, cheaper everyday payments, like buying things online or sending money abroad.
Although PayPal was the first big financial company to launch its stablecoin, PYUSD hasn’t yet gained much ground. It’s worth around $873 million, while Tether (USDT), the market leader, is worth nearly $145 billion. According to CoinGecko, only six stablecoins are above the $1 billion mark.
PYUSD has mostly been used for crypto-related transactions so far, according to Jose Fernandez da Ponte. He said PayPal sees stablecoins as the future of payments, but it’s a long-term effort — they’re halfway through a 10-year plan.
PayPal is endeavoring to integrate PYUSD into more of its products this year in order to speed up and lower payments. CEO Alex Chriss supplemented this by saying that they are trying to decrease cost in the payments system with stablecoin adoption.
Since PYUSD launched, big names like Robinhood, Revolut, Stripe, and Fidelity have entered the stablecoin space, increasing competition. Circle is also expanding by launching a network for cross-border payments using stablecoins.
Stablecoins are becoming a profitable part of crypto since they’re backed by assets like U.S. Treasuries. But PayPal’s 3.7% reward on PYUSD isn’t tied to Fed rates or just the interest from those reserves. Instead, PayPal is investing in this program to grow PYUSD’s use and value.
Also Read: PayPal Adds Support for Solana (SOL) and Chainlink (LINK) in Wallet
