After dominating digital payments for decades, PayPal is finally throwing serious cash at its crypto ambitions. The financial giant just announced a jaw-dropping 3.7% annual reward program for users holding its PYUSD stablecoin, set to launch in summer 2025. Talk about putting your money where your mouth is.
The rewards program isn’t just some small-time promotion. Users on both PayPal and Venmo will earn daily rewards, paid out monthly, and can immediately spend them at millions of merchants. No fees for sending PYUSD to friends or family, and even international remittances through Xoom are fee-free. This offering comes in slightly below Coinbase’s 4.1% rate on USDC. Pretty sweet deal for a stablecoin that’s currently sitting in eighth place.
PayPal’s PYUSD rewards program delivers daily earnings and fee-free transfers, making crypto transactions as simple as traditional payments.
Let’s be real – PYUSD’s current $873 million market value is pocket change compared to crypto heavyweights like Tether and Circle. But PayPal’s not playing around. The stablecoin works on both Ethereum and Solana networks, and users can convert it to cash faster than you can say “blockchain revolution.” Users should note that PYUSD is fully backed by dollars and equivalent cash assets. Like other fiat-backed stablecoins, PYUSD maintains its value through direct currency reserves.
The program’s timing is interesting, launching during what many see as a crypto-friendly Trump administration. PayPal’s got some serious muscle behind this push, too. Coinbase has agreed to waive fees on PYUSD transactions, and merchants can now settle directly in the stablecoin instead of using traditional banking channels.
PayPal’s CEO Alex Chriss isn’t being subtle about the company’s ambitions. The reward program is clearly designed to boost PYUSD’s real-world usage and grab a bigger slice of the stablecoin pie. With features like vendor payouts and bill payments on the horizon, PayPal’s building a whole ecosystem around its digital dollar.
The move represents PayPal’s biggest push yet to make PYUSD more than just another stablecoin. With daily rewards, zero-fee transfers, and mainstream integration, they’re betting big on changing how people think about digital currency. Whether it works or not? Well, that’s the billion-dollar question.
