Buy. Hold. Earn Rewards. PayPal Unlocks Rewards for Holding PayPal USD
Rhea-AI Summary
PayPal (NASDAQ: PYPL) has announced a new rewards program for its stablecoin PayPal USD (PYUSD), offering users a 3.7% annual reward rate for holding PYUSD in their PayPal or Venmo wallets. Set to launch in Summer 2025, the program allows users to:
- Earn daily rewards distributed monthly in PYUSD
- Use rewards for merchant payments, peer-to-peer transfers, and Xoom remittances
- Convert holdings 1:1 to fiat currency
- Trade for other cryptocurrencies
- Transfer to supported wallets on Ethereum and Solana blockchains
The program will be available to US users, excluding New York State at launch. While Venmo consumer accounts are eligible, Teen Accounts and Business Profile users cannot participate. PayPal maintains discretion to adjust the reward rate at any time.
Positive
- Introduction of 3.7% annual rewards program for PYUSD holdings
- Integration with existing PayPal merchant network for immediate spending utility
- Multiple use cases including merchant payments, remittances, and crypto conversions
- Daily reward accrual with monthly distribution
Negative
- Program excludes New York State users at launch
- Reward rate can be changed at PayPal's discretion
- availability - excludes Venmo Teen Accounts and Business Profiles
News Market Reaction – PYPL
In the trading session that priced this news, PYPL gained 1.69%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Users to receive
"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," said Alex Chriss, President and CEO, PayPal. "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."
Users will receive
Highlights of the offering include:
- Commerce-Ready: All PYUSD – purchased and received - can be used seamlessly to fund payments within the PayPal and Venmo ecosystems. Consumers can buy, send, and spend PYUSD both domestically and internationally – giving users additional flexibility and choice in how they use it.
- Accrue Rewards Daily, Receive Rewards Monthly:
3.7% annual rewards rate2, awarded out in PYUSD the following month and added directly to the user's Cryptocurrencies Hub.
Users can opt into or opt out of the program at any time and redeem their PYUSD holdings for USD quickly and easily in their PayPal or Venmo Cryptocurrencies Hub.
1 Rewards for PYUSD may not be available to
2 Anticipated rate upon program launch. The PYUSD rewards rate will be determined at all times in PayPal's sole discretion and is not guaranteed. PayPal reserves the right to change the PYUSD rewards rate at any time. Program will be subject to terms and conditions available upon launch.
3 Only Venmo consumer accounts are eligible to receive rewards. Venmo Teen Accounts and Venmo Business Profile users are not eligible to participate in the program.
About PayPal USD (PYUSD)
PayPal USD is issued by Paxos Trust Company, a fully chartered limited purpose trust company. Paxos and its products – including expansion to new blockchains – are licensed to engage in Virtual Currency Business Activity by the
About PayPal
PayPal has been revolutionizing commerce globally for more than 25 years. Creating innovative experiences that make moving money, selling, and shopping simple, personalized, and secure, PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy. For more information, visit https://www.paypal.com, https://about.pypl.com/ and https://investor.pypl.com/.
PYUSD IS NOT INSURED BY THE FDIC, SIPC, OR ANY OTHER PUBLIC OR PRIVATE INSURER, INCLUDING AGAINST CYBER THEFT OR THEFT BY OTHER MEANS. PAYPAL IS A FINANCIAL TECHNOLOGY COMPANY AND NOT A DEPOSITORY INSTITUTION. PYUSD, THE PYUSD REWARDS PROGRAM, AND YOUR CRYPTOCURRENCIES HUBS ARE NOT BANK DEPOSITS OR OTHER DEPOSIT ACCOUNTS. PAYPAL DOES NOT INTEND FOR PYUSD REWARDS TO CONSTITUTE A SECURITIES OFFERING AND PARTICIPATION IN THE LOYALTY PROGRAM IS NOT AN INVESTMENT IN A SECURITIES OFFERING.
PayPal, Inc. (NMLS ID #: 910457) is licensed to engage in Virtual Currency Business Activity by the
Contact: Media Relations, mediarelations@paypal.com
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SOURCE PayPal Holdings, Inc.