In August, PayPal, one of the biggest payment processors, launched its stablecoin called PYUSD to improve the user experience of more than 420 million customers. The announcement of the fiat-backed stablecoin brought excitement among crypto enthusiasts, causing the market to rally.
In this article, we will explain everything you need to know about PYUSD and where you can buy it.
PYUSD Explained
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PYUSD is pegged to the United States dollar, meaning it is intended to maintain its price at $1 all the time. To keep the price stable, PayPal holds USD reserves that back the stablecoin. PYUSD and other stablecoins shield crypto users from the high volatility common in unbacked crypto assets such as Bitcoin and Ethereum.
PYUSD Introduces 3 Major Innovations
Firstly, by integrating PYUSD into its payment infrastructure, PayPal has provided a convenient way for customers and merchants to use cryptocurrency in their daily transactions.
Secondly, PayPal’s stablecoin has established reliability and trust in a largely unregulated crypto market, having secured a license from NYSDFS (New York State Department of Financial Services). The license gives PYUSD a massive competitive advantage over its unregulated rivals. It is worth mentioning that the issuer of this stablecoin, Paxos, is also a regulatory-compliant company.
Finally, being an ERC-20 token, PYUSD can be incorporated into DeFi (decentralized finance) apps, allowing holders to explore new investment opportunities.
Use Cases of PayPal’s Stablecoin
Here are some of PYUSD’s use cases:
Cryptocurrency conversions: The PayPal stablecoin facilitates a seamless transition between crypto assets supported by the payment giant.
Online payments: Funding your PayPal account with PYUSD allows you to pay for online purchases with crypto.
Peer-to-peer transactions: Sending funds to your friends and family is now faster and cheaper, thanks to PYUSD.
PayPal does not intend to limit PYUSD’s uses to traditional customers. During the launch of the stablecoin, the payment company said that its crypto asset will soon play a major role in Web3, serving as a vital bridge between blockchain innovations and traditional finance.
A Guide to Purchasing PYUSD
As a top stablecoin, PYUSD is listed on multiple cryptocurrency exchanges, making it easy to access. In this guide, we’ll teach you how to buy it on Coinbase and PayPal.
How to Acquire PYUSD on PayPal
Step 1: create a PayPal account. To do this, provide a valid phone number, email, and full name.
Step 2: Fund your newly created account with fiat. PayPal supports multiple payment methods, but many prefer debit/credit cards. To link your card with your PayPal account, simply click “Add Bank Card” and enter the card details.
Step 3: After adding funds, navigate to the “Crypto” section and select PYUSD as the digital currency you wish to buy.
Step 4: Enter the amount of fiat currency (USD) you want to use to purchase PYUSD. Now review the details of the transaction and hit “Buy” to receive the PayPal stablecoin. If this transaction takes more than five minutes to complete, consider contacting PayPal’s customer support team.
How to Acquire PYUSD on Coinbase
Buying PYUSD on this platform is super simple. Just follow these steps.
Step 1: Go to Google’s Play Store or Apple’s App Store and download Coinbase Wallet, which is a non-custodial crypto wallet allowing you to have full control over your digital assets.
Step 2: Open the wallet and create an account. Remember to keep the recovery phrase safe because you will need it to access your crypto in the event you forget your wallet’s password.
Step 3: Add ETH tokens to your Coinbase Wallet. If you have a Coinbae account, you can buy and transfer the crypto asset from there.
Step 4: After receiving ETH, use the Coinbase Wallet “Swap” functionality to trade ETH for PayPal’s stablecoin. Note that this transaction attracts gas fees.
Conclusion
Following the success of PYUSD, we are likely to see more companies in the traditional finance sphere integrate cryptocurrencies into their businesses in the future to process transactions quickly and at low costs.