Yellow Card Becomes The First Fintech In Kenya & Africa to Launch PayPal USD (PYUSD).
This new stablecoin from PayPal, issued by Paxos, will open new horizons for digital financial transactions between Africa and the United States
Today marks a significant milestone in Kenya’s and Africa’s cryptocurrency industry as Yellow Card becomes the first fintech on the continent to launch PayPal USD (PYUSD). This new stablecoin from PayPal, issued by Paxos, will open new horizons for digital financial transactions between Africa and the United States.
Crypto adoption in Kenya and Africa is booming — according to a report by Chainalysis, between 2020 and 2021, the crypto market on the continent grew by over 1200% (to $106 billion). More recently, also from Chainalysis, Sub-Saharan Africa has the smallest crypto economy of all global regions, accounting for 2.3% of global transaction volume between July 2022 and June 2023. During that time period, the region received an estimated $117.1 billion in on-chain value.
Nigeria, Morocco, and Kenya rank in the global top 20 for crypto adoption. A large part of the reason for this growth can be attributed to stablecoins, which have gained popularity with both beginners and seasoned traders due to their ease of use and greater stability. Kenya in particular has an estimated 4 to 4.5 million crypto users as of this writing showing that the potential for this new offering from Yellow Card has massive potential for the many existing and none PayPal users in Kenya as well.
According to Yellow Card, as of August 2023, PYUSD launched in the US market and since then has been making waves in the industry. PYUSD is a fully-backed USD stablecoin with reserves held 100% in US dollar deposits, US treasuries, and cash equivalents. PYUSD — and its reserves — are subject to strict regulatory oversight by the New York State Department of Financial Services meeting the highest standards of consumer protection.
PYUSD’s availability on Yellow Card means customers can smoothly transfer funds to and from the US. This is because PayPal and Venmo users in the US can accept PYUSD and exchange for the dollar. Essentially, it removes longer processes while providing security, stability, and speed — while still being cost-effective and less expensive.
Given how the US Dollar has become a thorn in the side of many African currencies as they weaken against it this is clearly one of the ways consumers and businesses can buy and sell products and services using it as the preferred currency at the moment to minimize exchange rate-related losses.
The collaboration also introduces newfound global trading opportunities and access for customers based in Africa as customers can seamlessly buy, sell, and transfer PYUSD on the Yellow Card platform without the need for a PayPal account.
Promoting financial inclusion, and education and bridging the gap between traditional and digital financial systems in Africa is a fundamental component of Yellow Card’s partnership with PayPal will no doubt empower individuals and businesses across the continent, allowing them to participate in the global economy more effectively.