PayPal Stablecoin PYUSD on Venmo: First Stablecoin Enabling Wallet Interoperability at No Cost
PayPal has integrated PYUSD into Venmo.
- PayPal’s PYUSD has been launched on Venmo.
- The company is championing the integration as a major boost for wallet interoperability.
- Launching PYUSD on Venmo is in line with PayPal’s efforts to push the stablecoin as a bridge between fiat-based and Web3 payments.
When PayPal launched PYUSD in August, it set the stage for the firm to integrate the new stablecoin into its various payment products.
With the launch of PYUSD on Venmo, it has taken a seat at the heart of the PayPal ecosystem. Could the move instigate a boom in stablecoin adoption?
PYUSD Arrives on Venmo
PayPal announced the launch of PYUSD on Venmo in a statement on Thursday, September 21.
Select Venmo users can already hold and transact with PYUSD, with a full rollout planned in the coming weeks.
Venmo users are able to send and receive PYUSD transactions between each other and third-party wallets that support the new stablecoin, including MetaMask, Ledger and Phantom wallets.
According to PayPal, the latest integration represents “The first example of a stablecoin enabling wallet interoperability at scale with no cost,” although the company acknowledges that users are still required to pay gas fees.
Bridging Web3 and Everyday Payments
As the popularity of Web3 platforms has exploded, the need for a separate, crypto-compatible wallet to make payments has created unnecessary friction for users.
However, since launching PYUSD, PayPal has touted the new currency as a safe, regulated stablecoin suitable for both Web3 and everyday payments.
According to PayPal, as of August 2022, there were nearly 90M Venmo accounts in the US, equating to roughly 1 account for every 3.5 people. Meanwhile, the firm boasts 432M active PayPal accounts spread across 200 markets.
In contrast, the most popular Web3 wallet, Metamask, has a little over 30M monthly active users.
From blockchain games to decentralized social networks, various Web3 apps may attract users beyond the traditional cryptocurrency and NFT communities.
But in a world where many consumers already juggle between Big Tech digital wallets from PayPal, Apple and Google, as well as more localized alternatives that are popular in specific countries, adding crypto wallets into the mix creates an additional barrier to entry.
Against the backdrop of such a fragmented global payments landscape, PayPal’s promise of seamless interoperability between crypto and fiat currencies could drive the next wave of Web3 users.
What’s more, the firm has the advantage of a globally recognized brand, which could give PYUSD an edge over rival stablecoins.
