PayPal has reportedly completed its first business payment using its in-house stablecoin.
This was done to demonstrate how digital currencies can be used to improve often confusing commerce, Bloomberg News said on Thursday (October 3), citing interviews with company officials. Reported.
PayPal did not disclose the amount, but the payment was made to accounting giant Ernst & Young on September 23rd using PYUSD, a stablecoin that the company launched in 2023. Used SAP SE platform to complete. Stablecoins are digital assets pegged to the US dollar.
“The corporate environment is very well-suited for that,” José Fernández da Ponte, senior vice president of blockchain, cryptocurrencies and digital currencies at PayPal, told Bloomberg. “The conversations I have with the CFO are very reasonable.”
As PYMNTS wrote late last month, this news comes as stablecoins gain increased prominence in the fintech world, due in part to their stability.
The report states, “Unlike cryptocurrencies such as Bitcoin and Ethereum, which despite their prominence in the cryptocurrency space are still primarily known for their price volatility, stablecoins offer stable values. “It is designed to be sustainable and ideal for a variety of financial applications.”
“Fintechs around the world are turning to stablecoins for their ability to offer the benefits of digital currencies without the volatility of cryptocurrencies.”
That includes the UK’s Revolut, which is reportedly creating its own stablecoin, with PYUSD currently one of the world’s largest stablecoins, as of Thursday afternoon. The market capitalization is over $715 million.
Stablecoins are particularly attractive to fintech companies looking to overcome the challenge of improving global payments, as they can reduce transaction costs and settlement times by bypassing traditional banking systems and intermediaries.
“Traditional cross-border payments still have a lot of issues with transparency and cost. For the experience to be a 10, it needs to be like using Venmo, at least from a user experience perspective. You find the recipient, choose the currency you want to send the money to, and you get those funds instantly,” Solana Foundation told PYMNTS about payments and commerce.
“Blockchain solutions and stablecoins, I don’t want to use the word crypto. This is more about fintech and they are proving to be a good fit for the product market in cross-border payments. Because of this,” Scheer said.
