PayPal's on-chain stablecoin, PYUSD, designed to serve as a secure digital representation of the US dollar, is now accessible via Venmo. This strategic move comes just over six weeks after the launch of PYUSD, and it aims to make digital transactions faster, cheaper, and more efficient. Meanwhile, this is an opportunity for increased adoption in the United States for the cryptocurrency market. After all, Venmo is already used by one in four US-based consumers.
PayPal Enables PYUSD Payments via Venmo
Initially introduced to bridge the gap between traditional fiat and the emerging web3 ecosystem, PYUSD has quickly gained traction. Yesterday (Wednesday), PayPal announced that its stablecoin is now available on Venmo for selected users, with plans for a full-scale rollout soon. The new feature allows zero-cost transfers between PayPal and Venmo. According to PayPal, it marks the first instance of free and fast stablecoin-enabled wallet interoperability on such a large scale.
Venmo users can now purchase PYUSD and send it to friends and family, not just on Venmo and PayPal, but also to compatible external wallets. Standard blockchain network fees will apply for those using other wallets or accepting PYUSD as merchants.
“We remain fully committed to the mission behind PYUSD: deploying a safe, regulated stablecoin at scale both for the web3 ecosystem and for everyday payments, and we look forward to sharing more updates in the future,” PayPal commented in the official press release.
Venmo is an American mobile payment service provider that was launched in 2009 and acquired by PayPal in 2013. With the growing popularity of contactless payments using smartphones and smartwatches, Venmo additionally gained additional traction. According to data released by the payment giant last year, Venmo surpassed 90 million accounts in the US, as a result of which one in four consumers in the United States uses the payment app for everyday purchases.
According to data for the second quarter of 2023, Venmo's total payment volume ranked at $67 billion. This compares to ten times less of $6 billion, which was recorded six years ago.
PYUSD's Growing Ecosystem
PayPal's PYUSD is not just limited to PayPal and Venmo. It has already integrated into the broader crypto market. Within weeks of its launch, it became available on major exchanges like Crypto.com, Bitstamp, Coinbase, and Kraken.
It is also supported by main crypto wallets like MetaMask, Ledger, and Phantom and institutional services like Fireblocks, Copper, Paxos, and Fordefi. Notably, PYUSD received the green light from the New York State Department of Financial Services, simplifying its adoption among licensed virtual currency entities in the state.
Although it still lags behind on a list of major stablecoins, its market capitalization is continuing to grow. Currently, it stands at $44 million with a daily transaction volume exceeding $3 million. If the list of largest stablecoins were analyzed based on the value of daily transactions, it would rank 12th, outperforming larger projects like Pax Dollar (USDP).
In a notable shift within PayPal's cryptocurrency endeavors, Alex Chriss is set to assume the role of President and CEO at the end of September, succeeding Dan Schulman. Chriss presently serves as the Executive Vice President and General Manager of the Small Business and Self-Employed Group at tech firm Intuit, a company renowned for its offerings like QuickBooks, TurboTax, and Mailchimp.
It's an honor to join this iconic tech company and work alongside the incredible @PayPal team! ???? https://t.co/T0a8sp5TIm
— Alex Chriss (@acce) August 14, 2023
A significant advantage for PYUSD is the public's view of PayPal as a reliable, secure, and regulatory-compliant entity. In the meantime, the company has expanded its current crypto payment support.
This article was written by Damian Chmiel at www.financemagnates.com.
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