PayPal expands PYUSD support to Solana, with a focus on payment use cases

PayPal has decided to utilize the Solana blockchain to expand its stablecoin, known as PYUSD, marking a significant move away from its previous reliance on the Ethereum ecosystem. This decision was announced on May 28 and signifies a strategic effort by PayPal to broaden the reach and functionality of PYUSD.

The integration of PYUSD into the Solana network enables users to conduct transactions more efficiently and at lower costs compared to traditional methods. This move is aimed at enhancing the practicality of PYUSD for everyday transactions, making it a viable payment option for small purchases and daily expenses.

Solana's impressive transaction processing capabilities further reinforce the appeal of this partnership. With the capacity to handle up to 65,000 transactions per second and transaction costs as low as $0.0025, Solana significantly outperforms Ethereum, which processes only 15 transactions per second and incurs higher fees ranging from $1 to $50 during periods of congestion. As a result, transactions conducted using PYUSD on Solana can be completed in a fraction of the time it would take on Ethereum.

Jose Fernandez da Ponte, PayPal's Senior Vice President of Blockchain, emphasized the strategic significance of this move, stating that it aligns with PayPal's mission of facilitating secure and efficient digital transactions. By leveraging the Solana blockchain, PayPal aims to further its goal of providing users with a stable digital currency that is well-suited for both commercial transactions and everyday payments.

Furthermore, PayPal and Venmo users will benefit from a seamless experience across different blockchain networks, with their PYUSD balances being unified regardless of the network on which they are held. This interoperability enhances the convenience and accessibility of PYUSD for users of PayPal's digital wallet services.

The decision to integrate PYUSD into the Solana blockchain comes at a time when Solana has emerged as a preferred platform for stablecoin transfers. Data from the analytics platform Artemis indicates that Solana has seen a significant increase in stablecoin transfer volume, surpassing that of Ethereum over the past year.