[NEWS] PayPal Completes First Business-to-Business Payment Using PYUSD

It has been discovered that PayPal made a payment to Ernst & Young LLP (EY), one of the world's four largest accounting firms, using stablecoin PYUSD through cryptocurrency exchange Coinbase last month. Bloomberg reported on the 3rd.

The company used PYUSD to settle an invoice from EY on the 23rd of last month.

The transaction was made using software company SAP's digital currency hub. The amount was not disclosed.

Stablecoins are particularly popular in areas where the price of fiat currencies is highly volatile.

According to blockchain analysis company Chainalysis' "2023 Cryptocurrency Geography Report," countries with high volatility in the price of fiat currencies, such as Argentina, Venezuela, and Mexico, have a high rate of stablecoin use as a cheaper alternative to hedge against inflation and conduct cross-border transactions.

Stablecoins are useful for business-to-business transactions

Jose Fernandez da Ponte, senior vice president of blockchain, crypto assets and digital currencies at PayPal, said stablecoins are also suitable for use in business-to-business payments.

He added that business-to-business payments, especially cross-border payments, are time-consuming and costly due to the presence of third-party intermediaries.

Therefore, he noted that the adoption of stablecoins in such cases would allow faster and cheaper payments, reducing costs for businesses.

On the 25th of last month, PayPal launched a service that allows US companies to buy, hold and sell crypto assets through business accounts.

An EY survey released in July revealed that PYUSD was the most commonly used stablecoin for payments, with 47% of respondents using PayPal's dollar-pegged token for payments. The survey included both accredited and non-accredited investors.

In addition, BVNK, a global stablecoin payment provider, has begun exchanging US dollars sent to its platform through Swift for stablecoins, including PYUSD, and transferring the funds to customers around the world.

Ponte also addressed the concerns of the cryptocurrency industry after FTX's collapse. He explained that such partnerships with traditional major companies are intended to demonstrate the stability and usefulness of PYUSD in business transactions.

Reference: Coinbase announcement, Bloomberg
Image: Shutterstock

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