Set to become available in summer 2025, the scheme will apply to both PayPal and Venmo wallet holders, enabling eligible users to earn a 3.7% annual reward in PYUSD.
The reward is expected to be calculated daily and distributed monthly in the form of PYUSD. Funds earned through the programme can be used for a variety of payment options within the PayPal and Venmo ecosystems, including peer-to-peer transfers, purchases with merchants, and international remittances via Xoom.
The stablecoin can also be converted into fiat, exchanged for other cryptocurrencies, or sent on-chain through Ethereum and Solana-supported wallets.
PayPal officials described the initiative as part of an ongoing strategy to expand the practical applications of PYUSD across consumer and business transactions. According to the company, PYUSD is already being used for commerce, peer payments, crypto-related transfers, and business-to-business (B2B) settlements. The reward feature is intended to support future functionalities such as payouts and bill payments, with cross-border vendor settlements already included in its roadmap.
Participation in the reward scheme is optional, and users will have the ability to enrol or withdraw at any time. The PYUSD balance can be redeemed for USD through PayPal’s and Venmo’s respective cryptocurrency hubs. However, residents of New York State will not be eligible for the reward feature at launch due to regulatory constraints.
The stated 3.7% rate is subject to change and will be determined by PayPal at its discretion. Full terms and conditions are expected to be released alongside the programme’s launch. Only consumer accounts on Venmo will qualify for the reward, and business profiles and teen accounts are excluded.
For more information about PayPal, please check out their detailed profile in our dedicated, industry-specific Company Database.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now