* Bringing PYUSD to Africa is about delivering tangible value to the people and businesses driving growth in these dynamic markets
* Consumers gain a flexible, stable way to move funds faster, while businesses can streamline cross-border payments, improve settlement times and unlock new opportunities for growth
By Duncan Mlanjira
The global payments company, PayPal has announced that is has expanded access to its PayPal USD (PYUSD) stablecoin to 26 other African countries including Malawi to make cross-border payments faster and cheaper for consumers and businesses.
Advertisement
In a statement, senior vice-president and General Manager of Crypto at PayPal, May Zabaneh indicated that PYUSD is now available in 70 markets worldwide through PayPal accounts, “allowing users to buy, hold, send and receive the dollar-backed digital currency”.
Zabaneh added that the expansion is aimed at addressing challenges associated with traditional international payment systems, which are often costly and slow, emphasising that “consumers and businesses are increasingly demanding better ways to transact across borders”.
“Consumers and businesses around the world are looking for faster, more seamless ways to transact globally and the current system still charges too much, takes too long and settles on timelines that were designed for a different era,” Zabaneh said.
On his part, PayPal senior vice-president and General Manager for the Middle East and Africa, Otto Williams said the rollout could help unlock new opportunities for African businesses and consumers.
Otto Williams
“Bringing PYUSD to Africa is about delivering tangible value to the people and businesses driving growth in these dynamic markets.
“Consumers gain a flexible, stable way to move funds faster, while businesses can streamline cross-border payments, improve settlement times and unlock new opportunities for growth,” Williams said.
He added that increasing access to a regulated US$-backed digital currency “would help reduce barriers and friction in global commerce across the region” and indicated that “eligible users in Malawi and other newly supported markets will be able to buy, hold, send and receive PYUSD through their PayPal accounts, transfer the stablecoin to supported third-party digital wallets and convert it into local currency when withdrawing funds, subject to local availability”.
Advertisement
PayPal further says businesses that accept PYUSD can access proceeds within minutes rather than waiting days or weeks under traditional settlement systems, improving cash flow and liquidity.
The company also clarifies that PYUSD is a US$-backed stablecoin issued by Paxos Trust Company and is fully backed by US$ deposits, US Treasury securities and similar cash equivalents.
“There are no fees to buy or sell PYUSD using US dollars and no charges for sending or receiving PYUSD between PayPal accounts, although foreign exchange rates and fees may apply when converting from other currencies,” says the company.
Advertisement