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As a business owner, speed, cost, and reliability matter. Stablecoins can help you work to improve all three.
This guide spotlights how stablecoins like PayPal USD (PYUSD) can help your business make fast, low-cost transactions around the world—all while maintaining a stable value and benefiting from PayPal’s services.
Stablecoins are a category of digital currencies that are defined by their value remaining pegged to a different, often non-digital, asset. The most common category of stablecoins are those pegged 1:1 to the U.S. dollar (USD).
Unlike other cryptocurrencies, stablecoins are designed to hold a steady value relative to the underlying asset they are pegged to. This makes stablecoins useful for businesses looking to benefit from digital payments without exposing themselves to price swings.
For example, PYUSD is designed to maintain a 1:1 value with USD, meaning one PYUSD is designed to always be worth one dollar.
Stablecoins like PYUSD offer benefits that can streamline operations and enhance the customer experience. Here are some potential advantages:
Traditional bank transfers (especially cross-border) can take days. Stablecoins enable near-instant transactions, which can improve cash flow and customer satisfaction. Transaction times may vary.
Bank and payment processor fees can add up, especially for international transactions. Stablecoins can offer lower fees by providing more direct payments with fewer intermediaries. Using PYUSD for payments can reduce costs compared to wire transfers, though there are some fees that may apply.
Dollar-pegged stablecoins are designed to maintain a stable value in USD, making them suitable for invoicing, treasury management, or paying suppliers.
Stablecoins like PYUSD can be used in over 200 markets through a variety of ecosystem partners, simplifying transactions around the world.
Offering PYUSD as a payment option may attract customers who value fast, low-cost transactions. It can also streamline refunds.
Stablecoins typically achieve their pegged value through collateralization—meaning each digital currency unit is backed by a reserve of assets. For example, PYUSD is backed by U.S. dollar deposits, U.S. treasuries, and cash equivalents.
This means that for every PYUSD in existence, there is a single dollar, U.S. treasury, or other equivalent stored to back it up. This ensures PYUSD’s value remains tied to the dollar because it means that PYUSD can always be redeemed for those underlying assets.
For businesses, this means you can accept PYUSD for payments, hold it with reduced volatility concerns, and use it to pay suppliers, with confidence in its stable value. Anyone who holds PYUSD can exchange it for U.S. dollars at a 1:1 rate. 1 PYUSD = 1 USD.
All stablecoins are built differently, but PYUSD stablecoins are designed with robust safeguards.
These measures include:
Stablecoins like PYUSD have versatile business applications:
Pay employees and suppliers quickly around the world, with potentially lower fees. PYUSD’s efficiency makes it suitable for regular payouts.2
Stablecoins enable small transactions that may be impractical with high-fee systems. For instance, a self-employed writer could charge readers $1 to access an article and accept PYUSD as payment, building a business from small transactions.
Businesses can hold PYUSD as a stable digital asset.
With stablecoins like PYUSD, sellers can tap into new markets around the world, with consumers who are adopting new ways to pay.
Stablecoins like PYUSD can transform how businesses handle payments, offering speed, potentially lower fees, and stability in a digital world. By adopting stablecoins into your business, you can find new ways to stay competitive and nimble.
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