Bloomberg News reported on October 3 that PayPal completed its first business payment on September 23, using stablecoin PYUSD to settle an invoice with Ernst & Young LLP. did.
The transaction was facilitated using software company SAP’s Digital Currency Hub, a platform that allows businesses to instantly send and receive digital payments. The amount was not disclosed.
Stablecoin payments suitable for business
In particular, stablecoins are typically tied to retail users, especially in regions with volatile fiat currencies.
According to Chainalysis’ 2023 Crypto Geography Report, countries such as Argentina, Venezuela, and Mexico have high rates of use of stablecoins as protection from inflation and as a cheaper alternative for conducting cross-border transactions. It shows that.
José Fernández da Ponte, senior vice president of blockchain, cryptocurrencies and digital currencies at PayPal, said enterprise environments are also well suited to the use of stablecoins.
He added that payments between businesses, especially cross-border payments, are often slow and costly due to third-party intermediaries. Therefore, adopting stablecoins in such cases allows for faster payments and is increasingly gaining support from businesses.
On September 25, PayPal introduced a service that allows U.S. merchants to buy and sell virtual currencies through their business accounts.
An Ernst & Young survey published in July highlighted that PYUSD is the most used stablecoin for payments, with 47% of respondents using PayPal dollar-pegged tokens for payments. . The study included accredited and non-accredited investors.
Additionally, payment infrastructure BVNK began exchanging US dollars sent to the platform through Swift for stablecoins such as PYUSD and transferring the funds to customers around the world.
PayPal’s vice president of crypto-related business also addressed the industry’s concerns after the FTX collapse. He explained that the partnership with such a traditional large company is to demonstrate the stability and usefulness of PYUSD in business transactions.
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