PayPal Completes First Business Payment Using In-House Stablecoin Pyusd

PayPal has made history by completing its first business payment using its in-house stablecoin, PyUSD.

This milestone marks a significant step in the adoption of digital currencies in the business world.

PayPal recently made its first business payment using its stablecoin PYUSD, marking a significant step in demonstrating how digital currencies can streamline commercial transactions.

The payment was made on September 23, 2024, for an invoice sent to Ernst & Young LLP through SAP SE's digital currency hub, a platform enabling instant, 24/7 digital payments.

PYUSD is a stablecoin tied to the US dollar with a market capitalization of nearly $700 million.

This payment illustrates the potential use of stablecoins in business-to-business (B2B) transactions, which can significantly improve the efficiency of cross-border payments.

Stablecoins like PYUSD offer faster settlement times and allow companies to bypass traditional financial systems, reducing transaction costs and improving settlement speed.

PayPal's stablecoin-enabled payments aim to provide similar advantages, making the process more attractive to enterprises.

The company has been advancing its digital asset capabilities, including allowing business users in the United States (except in New York) to buy, sell, and trade crypto directly from their PayPal accounts.

In August 2023, PayPal launched PYUSD, backed by US dollar deposits and short-term US Treasurys, and it has since grown to become one of the largest stablecoins in circulation.

The stablecoin market has been increasingly attracting more players, especially as clear regulations emerge around the globe, with companies like Robinhood and Revolut reportedly considering launching their own stablecoins in some jurisdictions.