PayPal Launches Rewards Programme for PYUSD Stablecoin Holders to Drive Web3 Adoption

San Jose, CA . April 25, 2025 In a strategic move to accelerate adoption of its stablecoin, PayPal USD (PYUSD), PayPal has officially launched a rewards programme offering holders 3.7% annual returns on their balances. The initiative is aimed at expanding PYUSD’s utility for everyday transactions and cross-border payments, while reinforcing PayPal’s long-term Web3 vision.

Earn Rewards with PYUSD on PayPal and Venmo

First reported by Bloomberg and later confirmed by PayPal CEO Alex Chriss on X (formerly Twitter), the new rewards programme allows users of PayPal and Venmo to earn monthly returns in the form of PYUSD stablecoins. The interest-style reward, pegged at 3.7% annually, will be automatically credited to users’ balances, with no additional fees or lock-ins.

“Stablecoins have the power to reshape the future of commerce by combining innovation, stability, and accessibility,” Chriss said on X. “Now, we’re making PayPal and Venmo the most rewarding way to hold PYUSD.”

Why PYUSD and Why Now?

Launched in 2023 and backed 1:1 by US dollars, PYUSD is a fully regulated Ethereum-based stablecoin developed in partnership with Paxos Trust. It is designed for seamless integration across PayPal’s ecosystem, offering users a stable digital currency for spending, savings, and now, rewards.

The stablecoin currently boasts a market cap of $865.91 million, with over 866 million PYUSD in circulation, according to CoinMarketCap. The new rewards programme is expected to increase demand among casual users, fintech adopters, and global merchants by delivering tangible benefits beyond mere price stability.

A Major Push into Web3 and Stablecoins

This is PayPal’s most recent push into blockchain and Web3. In 2022, the company formed a six-member blockchain advisory council to explore decentralized tech use cases. By 2024, PayPal enabled crypto buying, selling, and holding for business accounts, catering to rising user interest in digital assets.

PYUSD’s reward programme also positions PayPal competitively ahead of expected stablecoin regulation in the US, which is approaching finalization. Clear legal frameworks are expected to offer more legitimacy and clarity for businesses engaged in stablecoin services.

What’s Next?

While no fixed timeline has been shared for the official rollout of the rewards initiative, industry experts believe that the programme could become a benchmark for other fintech players entering the stablecoin ecosystem. Monthly interest-like payouts may drive greater user retention, encourage cross-border use cases, and improve crypto-fiat convergence.

How PYUSD Rewards Will Work

• Eligibility: All verified PayPal and Venmo users holding PYUSD

• Return Rate: 3.7% annually, paid out monthly in PYUSD

• Payout Mechanism: Automatically credited to the account

• Type of Reward: Non-compounding, stablecoin-based returns

• No Lock-In Period: Users can withdraw or use PYUSD anytime