PayPal Expands Cryptocurrency Offerings with PYUSD Integration on BitPay

PayPal's Cryptocurrency Expansion

PayPal has taken a significant step in expanding its cryptocurrency offerings by integrating its stablecoin, PYUSD, onto BitPay's platform. This addition enhances the payment options available to both merchants and consumers, marking another milestone in PayPal's strategic entry into the crypto sector.

PYUSD Integration and Adoption

Launched in August 2023, PYUSD is a U.S. dollar-denominated stablecoin issued by Paxos Trust and powered by PayPal. The integration with BitPay allows users to conduct transactions using various wallets, including the BitPay Wallet, PayPal Wallet, and Metamask, as well as any compatible Ethereum wallet. Notably, Xsolla, a video game commerce start-up, is among the first to accept PYUSD for online purchases.

Broader Merchant Support

Beyond traditional payments, BitPay users can leverage PYUSD within self-custody wallets and use it to buy gift cards from over 250 retailers. Several prominent merchants now accept PYUSD, including Namecheap, APMEX, CRM Jewelers, and AMC Theatres, broadening the stablecoin's utility.

Evolution of PayPal's Crypto Services

PayPal's engagement with cryptocurrencies began in 2020, enabling U.S. users to buy, sell, and hold digital currencies. By 2021, the company introduced Checkout with Crypto, facilitating cryptocurrency transactions at numerous merchants. The rollout of PYUSD represents the next logical progression in PayPal's cryptocurrency strategy, aiming to bolster Web3 and DeFi applications.

Future Plans and Transparency

PayPal intends to gradually offer PYUSD to U.S.-based customers, with full availability targeted by Q4 2023. To access PYUSD, users must establish a PayPal account and meet know-your-customer (KYC) requirements. Paxos, the issuer of PYUSD, demonstrates transparency by releasing monthly reports on the assets backing the stablecoin, confirming it is fully backed by assets as of August 2023.