PayPal rolls out PYUSD to 70 countries to cut conversion fees

PayPal is expanding access to its US-dollar stablecoin PayPal USD (PYUSD) to 70 countries in March, adding 68 markets to the two where it was previously available. The rollout covers customers across Asia-Pacific, Europe, Latin America and North America.

Users in the newly supported markets will be able to receive, hold and send PYUSD through their PayPal accounts. The update enables cross-border transfers in US dollars and adds support for sending PYUSD to third-party digital wallets.

The change affects countries where PayPal accounts were limited to withdrawals in local currency or required immediate transfers to bank accounts. In Peru, for example, users previously could only withdraw funds in the local currency and faced cross-border fees. In Malawi, local rules have required PayPal balances to be sent directly to recipients’ bank accounts. With PYUSD available, customers in those markets can keep funds in dollar-denominated PayPal balances, which PayPal says can reduce conversion and transfer costs.

May Zabaneh, head of crypto at PayPal, described the effect on local accounts: “Enabling PYUSD in users’ accounts across 70 markets gives people faster access to their funds, lower-cost ways to send money across borders, and a more direct path to participating in the global economy.” She added the update introduces a “balance-type concept” to some accounts and an earnings opportunity on stablecoin holdings.

PYUSD is issued by Paxos Trust Company and distributed by PayPal. The stablecoin launched in August 2023. Market data lists PYUSD among the larger USD-pegged stablecoins with a market capitalization near $4.1 billion. PYUSD’s market value rose markedly in 2025, increasing from about $500 million in early 2025 to roughly $3.6 billion by year-end.

The expansion includes a rewards program on stablecoin balances in the newly supported markets. PayPal frames the update around payments and remittance use cases and will offer rewards rather than interest-like yields that some jurisdictions restrict.

PayPal says the rollout is intended to give customers faster access to funds and lower-cost ways to send money across borders by widening the number of countries where customers can hold and transfer PYUSD.

As we reported earlier, lawmakers approved the GENIUS Act’s framework for stablecoin issuers but banking groups pushed back, submitting red-lined language to limit how stablecoin rewards are treated. The broader CLARITY Act passed the House last year and awaits Senate action, where separate Banking and Agriculture committee drafts remain unreconciled. Banking officials and some executives, including Jamie Dimon, have urged that stablecoin yields face rules like bank deposits. White House meetings with banking and crypto representatives have not produced a compromise.