Home PayPal makes first business transaction using PYUSD stablecoin

PayPal makes first business transaction using PYUSD stablecoin

TLDR

  • PayPal made its first business payment using its stablecoin, PYUSD.
  • PYUSD is pegged to the US dollar and used for instant B2B transactions.
  • PayPal now offers crypto services for U.S. business accounts, expanding its crypto push.

PayPal has completed its first-ever business payment using its proprietary stablecoin, PayPal USD (PYUSD). 

The transaction marks another move for mainstream big business toward cryptocurrency, as initially reported by Bloomberg

PayPal made the undisclosed payment on September 23, settling an invoice from Ernst & Young LLP via SAP’s digital currency hub which provides the platform for instant transfers. 

PYUSD is a crypto token pegged to the US dollar, also known as a stablecoin because it is designed to maintain its set value at $1. It operates on the public blockchains Ethereum and Solana, alongside thousands of similar crypto assets. 

Following its launch in 2023, Paypal USD now has a market capitalization of almost $700 million. 

Last week, the company announced it would allow business customers in the U.S. to buy, hold, and sell crypto directly from their PayPal account. 

A press release from the online payment portal detailed the update for business customers, four years on from the same crypto facilities were enabled for personal accounts.

PayPal drawn toward established names for stablecoin payment

The use of crypto for customer-facing transactions is well established, but this landmark payment for PayPal reflects the scope for B2B growth, as intimated by Jose Fernandez da Ponte, the company’s senior vice president of blockchain, cryptocurrency, and digital currency. 

“The enterprise environment is very well-suited for it. It’s a very rational conversation to have with the CFO,” he said. 

In business, transactions are often complex and risky, especially international payments which can incur fees and reliance on third-party processors. The benefit of PYUSD over traditional currency is that crypto can be bought, sold, and transferred 24/7.

That is likely to be an attractive proposition for certain business operations but there is also vigilance of the prevalent risk around crypto. PayPal entered into the transaction with cognizance of this, moving toward household names as part of their latest play. 

“PayPal, SAP, EY – those are names that are very, very well-established,” added Fernandez da Ponte.

Image credit: Via Ideogram

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The ReadWrite Editorial policy involves closely monitoring the tech, gambling and blockchain industries for major developments, new product and brand launches, AI breakthroughs, game releases and other newsworthy events. Editors assign relevant stories to in-house staff writers with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Graeme Hanna
Tech Journalist

Graeme Hanna is a full-time, freelance writer with significant experience in online news as well as content writing. Since January 2021, he has contributed as a football and news writer for several mainstream UK titles including The Glasgow Times, Rangers Review, Manchester Evening News, MyLondon, Give Me Sport, and the Belfast News Letter. Graeme has worked across several briefs including news and feature writing in addition to other significant work experience in professional services. Now a contributing news writer at ReadWrite.com, he is involved with pitching relevant content for publication as well as writing engaging tech news stories.

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