PayPal has announced a new rewards programme for PYUSD, its US dollar denominated stablecoin.

Launching in summer 2025, this initiative will allow users in the US to earn an annual reward rate of 3.7 percent on PYUSD held in their PayPal or Venmo digital wallets.

Users will be able to earn rewards on their PYUSD balances and use them in various ways.

These include making purchases with merchants that support PayPal Checkout, transferring funds to other PayPal or Venmo users, and funding international transfers via Xoom without paying transaction fees.

PYUSD can also be converted one to one into US dollars, exchanged for other cryptocurrencies, or sent to supported wallets on the Ethereum and Solana blockchains.

Alex Chriss, President and CEO of PayPal, said,

“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. Consumers and businesses use PYUSD today for commerce, crypto, peer to peer transfers and B2B payments.”

Rewards will be calculated daily at the annual rate of 3.7 percent and distributed monthly in PYUSD.

These rewards will be added directly to the user’s Cryptocurrencies Hub, where they can be accessed for spending or conversion.

Users can opt in or out of the programme at any time and are able to redeem their PYUSD holdings for US dollars easily within the PayPal or Venmo platforms.

The programme is designed to support wider use of PYUSD by allowing seamless transactions across PayPal and Venmo.

All PYUSD, whether purchased or received, can be used for domestic and international payments, providing users with more flexibility and control over how they manage their digital funds.

Featured image credit: edited from freepik