Seamlessly Integrating with the Web2 Business Environment The Use and Development of PayPal Stablecoin PYUSD
PayPal was founded in 1998 and is an online third-party payment service provider. Elon Musk was once a co-founder. Currently, PayPal is the largest third-party payment provider globally. In Taiwan, PayPal’s partner bank is Yuanta Bank, allowing users to withdraw US dollars or Taiwanese dollars from PayPal using Yuanta Bank’s Yuanta Global Pass.
Since 2020, PayPal has entered the cryptocurrency market, allowing users to buy, sell, and hold cryptocurrencies. The PayPal-issued stablecoin PYUSD (PayPal USD) was officially launched in August 2023. At the Consensus conference on May 29th of this year, it was announced that PayPal is collaborating with Solana. PYUSD is currently ranked seventh in market value, with a total issuance of $399 million (compared to USDT’s issuance of $112 billion).
PayPal’s stablecoin PYUSD is designed for Web3 and supports various blockchain applications. It can facilitate developers in integrating Web3 payment functions and serve as an entry point for Web3 compatibility.
PayPal Wallet can receive other stablecoins from self-hosted wallets and offers more flexible usage, such as salary payments, expenses, and cross-border settlements in B2B transactions. Unlike USDC and USDT, which are widely used in DeFi exchanges and financial products, PYUSD focuses on commercial payment functions, supporting various blockchain technologies to facilitate smoother business transactions.
PYUSD aims to target the global commercial market, and at the Consensus conference on May 29, 2024, PayPal officially announced the integration of PYUSD with the Solana blockchain. This blockchain upgrade allows consumers to choose which blockchain they want to use PYUSD on. The collaboration between PYUSD and Solana opens up possibilities for Solana’s NFT market, Web3 games, and e-commerce platforms.
With PayPal’s leading position in third-party payments and the technology of the PYUSD wallet, potential collaborations with social media platforms could introduce subscription payment features, bringing more revenue to creators.
