PayPal to Launch PYUSD Rewards Program with 3.7% Annual Return

PayPal announced today that it will launch a new loyalty program this summer, enabling U.S. users to earn rewards on their holdings of PayPal USD (PYUSD). The company will offer a 3.7% annual reward rate in PYUSD for balances held in PayPal or Venmo wallets.

The initiative marks a significant step in PayPal’s effort to expand the utility of its U.S. dollar-backed stablecoin. Once launched, users will be able to use earned rewards to make purchases through PayPal Checkout, send funds to other PayPal or Venmo users, convert rewards to fiat or other cryptocurrencies, and fund international remittances through Xoom without incurring transaction fees.

“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.”

Rewards Structure and Accessibility

Under the new program, users will accrue rewards daily at the anticipated annual rate of 3.7%, with payouts issued monthly in PYUSD and credited to the user’s Cryptocurrencies Hub. Participation in the program will be optional, and users can opt in or out at any time.

The PYUSD rewards can be utilized immediately for a variety of use cases, including purchases, transfers, or exchanges within the PayPal and Venmo ecosystems. According to the announcement, PYUSD is designed to be commerce-ready, allowing users to buy, send, and spend the stablecoin both domestically and internationally.

Eligibility and Conditions

PayPal noted that while the program will be broadly available to U.S. users, rewards may not be accessible to users based in New York State at launch. Additionally, only Venmo consumer accounts are eligible to participate in the rewards program; Venmo Teen Accounts and Business Profile users will not be eligible.

The company clarified that the 3.7% rate is anticipated at the time of launch but is not guaranteed. “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,” according to the company.

The PYUSD rewards program is scheduled to go live in Summer 2025 and will be subject to terms and conditions that will be made available upon launch.

This article, "PayPal to Launch PYUSD Rewards Program with 3.7% Annual Return" was first published on Small Business Trends

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