PayPal recently completed its first business payment using its own stablecoin PYUSD, making it critical to demonstrating how digital currencies can streamline commerce, according to a report by Paige Smith of Bloomberg News. It is said to be a great step forward.
This payment, made on September 23, 2024, was for an invoice sent to Ernst & Young LLP and was facilitated by SAP SE’s Digital Currency Hub, a platform that enables instant digital payments 24/7/365. It was done. The transaction amount was not disclosed.
Launched in 2023, PYUSD is a stablecoin tied to the US dollar with a market capitalization of nearly $700 million. José Fernández da Ponte, PayPal’s senior vice president of blockchain, cryptocurrencies and digital currencies, said while stablecoins are often discussed in the context of consumer benefits, this payment The move shows the potential for stablecoins to be used in business-to-business (B2B) transactions. He emphasized that stablecoins can significantly improve the efficiency of B2B payments, especially cross-border transactions that are traditionally slow, expensive, and dependent on third-party intermediaries.
In recent years, companies, especially in countries with unstable currencies, have increasingly turned to stablecoins like Tether for cross-border payments. Stablecoins reduce settlement times and allow businesses to avoid the challenges of the traditional financial system. PayPal’s stablecoin-enabled payments aim to offer similar benefits by reducing transaction costs and increasing payment speeds, making the process more attractive for businesses.
In August 2024, PayPal expanded its crypto services by allowing merchants to buy, hold, and sell cryptocurrencies from their business accounts. By collaborating with trusted partners, PayPal is committed to making it easier for businesses to use stablecoins for payments, especially as digital currencies continue to come under intense scrutiny in the wake of the FTX scandal and other crypto-related controversies. We aim to demonstrate practicality.
