PayPal Launches 3.7% Yield on PYUSD Holdings

• U.S. users can earn 3.7% APY by holding PYUSD.
• Rewards are paid monthly in PYUSD and accrue daily.
• PYUSD can be used, transferred, or converted via PayPal or Venmo.

New Earning Opportunity for PayPal Users

This summer, PayPal is launching a new rewards program designed to incentivize users to hold its stablecoin, PYUSD. The payments giant has announced that U.S.-based users who store PYUSD in their PayPal or Venmo wallets will earn a 3.7% annual percentage yield (APY). This interest-like reward will be accrued daily and paid out monthly, providing users with a consistent and passive way to grow their digital dollars.

The rewards are not paid in cash but in PYUSD itself, adding to users’ existing holdings. This design helps promote broader adoption of PayPal’s stablecoin while offering a competitive yield that’s on par with many traditional savings accounts.

How PYUSD Rewards Work

Once the program rolls out, eligible users simply need to keep PYUSD in their wallet—no special action or staking process is required. Every day, their balance will grow slightly, reflecting the 3.7% APY. At the end of each month, the total earned rewards will be paid out directly in PYUSD.

This system gives users flexibility: they can hold PYUSD as a stable-value asset, exchange it back into fiat, send it to others, use it for international transfers, or spend it at checkout via PayPal. The rewards program is designed to make holding and using PYUSD more appealing and accessible.

Strengthening Stablecoin Adoption

PayPal’s move could play a pivotal role in boosting stablecoin usage among mainstream consumers. By offering a yield incentive, the company is encouraging people to consider stablecoins as a viable alternative to traditional banking products, especially for those already engaged in digital payments.

As regulatory clarity around stablecoins continues to evolve, PayPal’s integration of interest-like features may set a precedent for how fintech platforms engage users with crypto-native offerings.

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