PayPal has announced the expansion of its dollar-backed stablecoin, PayPal USD (PYUSD), to 70 markets worldwide, including markets across Africa. This will allow millions of consumers and businesses to send, receive, hold, and buy a regulated digital currency directly from their PayPal accounts.
This move is a major step for the payments company since it introduced PYUSD in the US in 2023. It establishes the stablecoin as a useful option for international business, addressing the ongoing issues of high costs and slow speeds in international money transfers for both businesses and individuals.
For everyday users in newly supported markets, PYUSD can be held in a PayPal account, sent to friends and family on the platform or to external digital wallets, and converted to local currency when withdrawing funds. Eligible users can also earn rewards on their PYUSD holdings.
For businesses, the advantages are even more evident. Businesses that use PYUSD can access their money in minutes, a notable improvement over the usual days or weeks it takes with standard settlement methods. This is especially beneficial for companies handling working capital internationally or dealing with the uncertainties of international payment processing times.
May Zabaneh, PayPal’s Senior Vice President and General Manager of Crypto, framed the expansion as a direct challenge to the inefficiencies that have long defined cross-border payments. “The current system still charges too much, takes too long, and settles on timelines that were designed for a different era,” she said.
“Enabling PYUSD in users’ accounts across 70 markets gives people faster access to their funds, lower-cost ways to send money across borders, and a more direct path to participating in the global economy.”
What Paypal’s move means for Africa specifically
Otto Williams, PayPal’s Senior Vice President and General Manager for the Middle East and Africa, was specific about the value the expansion brings to the continent.
“Consumers gain a flexible, stable way to move funds faster, while businesses can streamline cross-border payments, improve settlement times, and unlock new growth opportunities,” he said. “By increasing access to a regulated, USD-backed digital currency, we’re breaking down barriers and helping reduce friction in global commerce across the region.”
The African perspective is especially important. Transferring money within Africa and between Africa and other countries is very costly. These high fees reduce the value of money sent home and business deals. A stablecoin pegged to the dollar could solve this by offering cheaper and faster transfers, as long as people can use and trust the system.
PYUSD, issued by Paxos Trust Company under regulatory oversight, is fully backed by US dollar deposits, US Treasuries, and similar cash equivalents and is available across Africa, Asia-Pacific, Europe, Latin America, the Middle East, and North America.
Similar read: PayPal to cut jobs despite strong earnings as it targets $1.5bn cost savings
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