- PayPal has completed its first business transaction using its stablecoin PYUSD.
- The transaction highlights stablecoins’ potential to streamline corporate payments.
- PayPal has settled an invoice with Ernst & Young LLP using PYUSD.
Financial technology company PayPal Holdings achieved a significant milestone in corporate payments, potentially driving mainstream crypto adoption. The platform executed its first business transaction using its stablecoin PayPal USD (PYUSD) on September 23, 2024.
PayPal Settles Invoice with Ernst & Young Using PYUSD
According to Bloomberg , PayPal Holdings settled an invoice with multinational accounting firm Ernst & Young LLP using PYUSD. This demonstrates the potential of digital assets to improve corporate payments. PayPal reportedly used the SAP SE platform, known as the digital currency hub, to complete the transaction.
Read also: Vitalik Buterin on ENS: “Great” and PayPal, Venmo Integration Boosts Adoption
While the invoice amount remains undisclosed, the transaction highlights the streamlined process of cross-border payments using PYUSD, showcasing the potential for simplified and efficient international settlements.
Notably, PayPal deposited the funds into Ernst & Young’s Coinbase account. In a Coinbase blog post, PayPal’s Director of Market Development, Steve Everett, stated, “Business-to-business payments is ripe for innovation, and digital currencies can provide incredible value in these use cases.”
Stablecoins and Cross-Border Transactions
Stablecoins are cryptocurrencies backed by assets or commodities like fiat currencies or gold. Investors often prefer stablecoins to highly volatile cryptocurrencies. PYUSD is pegged to the US Dollar and has a market cap of $700 million.
Read also: PayPal and Venmo Embrace ENS for Smoother Crypto Transactions
Jose Fernandez da Ponte, PayPal’s senior vice president of its blockchain, cryptocurrency, and digital currency group, explained the benefits of using stablecoins for cross-border transactions. He stated that business group transactions, especially in international connections, are often expensive and risky. Sometimes, they require reliance on third parties.
In such a scenario, stablecoin transactions offer a more attractive option due to their faster settlements. Acknowledging PayPal’s collaboration with the industry leads, Fernandez da Ponte stated, “Paypal, SAP, EY – those are names that are very, very well-established.”
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