- PayPal will offer a 3.7% annual yield on PYUSD held in PayPal and Venmo wallets starting summer 2025.
- Rewards will be paid monthly in PYUSD and can be spent, transferred, or converted through PayPal’s digital ecosystem.
- PYUSD rewards program supports usage across peer payments, merchant checkout, and blockchain transfers on Ethereum and Solana.
PayPal Holdings, Inc. has revealed that it will launch a new reward program for U.S. customers that have its stablecoin, PayPal USD (PYUSD), in PayPal or Venmo wallets. The reward program will become available in summer 2025 and will provide an interest rate of 3.7%, distributed in PYUSD, with daily accrual and monthly distribution.
Rewards on PYUSD Holdings with Broad Utility
The program will allow users to earn rewards on their PYUSD holdings directly within the PayPal or Venmo Cryptocurrencies Hub. Users will have the ability to opt in or out at any time, giving them control over their participation. The rewards, distributed monthly in PYUSD, will be available for use across a wide range of financial activities.
These activities include sending funds to other users, making purchases via PayPal Checkout, funding international transfers on Xoom without transaction fees, and converting PYUSD to U.S. dollars or other cryptocurrencies. The token can also be sent onchain using supported Ethereum and Solana wallets.
PayPal clarified that only Venmo consumer accounts are eligible for the program. Teen accounts and business profiles will not be included. In addition, New York State residents will be excluded at launch due to regulatory limitations.
PayPal Aims to Integrate Stablecoins into Everyday Commerce
PayPal views the rewards program as a major step in its long-term strategy to promote PYUSD as a commerce-ready digital currency. PYUSD, introduced in 2023, holds a market value of approximately $865 million as of writing, placing it below the top-tier stablecoins by total capitalization.
Commenting on the announcement, PayPal President and CEO Alex Chriss said, “At PayPal, we believe stablecoins have the power to reshape the future of commerce as the foundation for the next generation of payments. Combining this innovative technology with our expansive global network allows us to help all users thrive in the world economy.”
He also noted that PYUSD is already in use across commerce, peer-to-peer transfers, and business payments, adding, “Consumers and businesses use PYUSD today for commerce, crypto, peer-to-peer transfers and B2B payments. We’re demonstrating our commitment to an innovative, commerce-ready ecosystem by enabling it for the settlement of cross-border transfers, vendor payments and in the future for additional payment use cases like payouts and bill pay.”
Encouraging Broader Usage in a Growing Market
The decision to offer yield on PYUSD holdings reflects PayPal’s aim to increase usage and utility of its stablecoin. Jose Fernandez da Ponte, Senior Vice President and General Manager of Blockchain, Crypto, and Digital Currencies at PayPal, emphasized this in a statement.
He said, “The rewards — which will accrue daily and will be paid monthly — are aimed at helping incentivize use of the stablecoin as a form of payment on PayPal’s network.”
Stablecoins continue to gain traction due to their relatively stable value and usefulness in transferring funds quickly. By offering a 3.7% yield, PayPal is positioning PYUSD not only as a transactional tool but also as a digital asset that delivers value to its users through everyday financial activity.
