The integration allows PayPal to reach over 30 million merchants globally and offer lower transaction costs for users via PYUSD and Solana.
PayPal’s USD stablecoin (PYUSD) has been launched on the Solana blockchain, as announced on Wednesday. According to PayPal’s blog post, users can onboard PYUSD to Solana via Crypto.com, Phantom, and Paxos.
1/📣Breaking News: @PayPal USD (PYUSD) is live on Solana!
PayPal USD stablecoin issued by @Paxos will leverage Solana and token extensions to serve over 30m+ merchants, empowering users with fast and secure stablecoin transactions. pic.twitter.com/h66iejTv50
— Solana (@solana) May 29, 2024
PayPal chose Solana for its cost-effectiveness and ability to support features like confidential transactions, transfer hooks, and customizable fields. These features enhance PYUSD’s utility and strengthen its market position.
Adopting Solana’s Speed and Low Costs
The collaboration between PayPal and Solana offers significant benefits, potentially giving millions of users access to PYUSD with faster transactions. This integration allows PayPal to reach over 30 million merchants globally and offer lower transaction costs for users.
This partnership marks a milestone for USD-pegged stablecoins, with PYUSD expanding beyond the Ethereum ecosystem. It broadens PYUSD’s use for small and everyday purchases. Since its launch, PYUSD has evolved to compete with Tether (USDT) and USD Coin (USDC).
Sheraz Shere, GM of Payments at the Solana Foundation, said that Solana’s speed and scalability make it ideal for new, cost-effective, and instant payment solutions. “Continued adoption by industry leaders like PayPal helps drive the next generation of fintech innovation,” she said.
Transactions on Solana are much faster and cheaper than on Ethereum. Solana transactions take seconds and cost about $0.0025, while Ethereum transactions can take minutes and cost $1 to $50. Jose Fernandez da Ponte, PayPal’s Senior Vice President of Blockchain, stated, “Making PYUSD available on the Solana Blockchain furthers our mission of enabling a digital currency with a stable value designed for commerce and payments.”
Faster Borderless Transactions
Xoom, PayPal’s cross-border money transfer service, now allows U.S. users to fund international transfers with PYUSD. These transfers to over 160 countries are free of transaction fees when using PayPal USD
In a similar move, Visa enhanced its stablecoin settlement capabilities last September using Solana-based USDC. Other major companies, like Stripe and WorldPay, have also adopted Solana for faster and more efficient payments.
