PayPal’s Stablecoin Joins Solana: Impact on Consumers and Banks Explained

PayPal’s Stablecoin Joins Solana: Impact on Consumers and Banks Explained

PayPal’s stablecoin, PayPal USD (PYUSD), was officially added to the Solana Blockchain last week. This shift comes after the California-based company launched on Ethereum blockchain last summer. Now, PayPal stablecoin users can send PYUSD on Ethereum or Solana when transferring out to external wallets.

“For more than 25 years, PayPal has been at the forefront of digital commerce, revolutionizing commerce by providing a trusted experience between consumers and merchants around the world. PayPal USD was created with the intent to revolutionize commerce again by providing a fast, easy, and inexpensive payment method for the next evolution of the digital economy,” said PayPal Senior Vice President of the Blockchain, Cryptocurrency, and Digital Currency Group Jose Fernandez da Ponte. “Making PYUSD available on the Solana blockchain furthers our goal of enabling a digital currency with a stable value designed for commerce and payments.”

In addition to enabling PYUSD transfers on both Ethereum and Solana, this move will have significant implications for PayPal, consumers, banks, and the crypto markets.

Impact on PayPal users

Faster transactions: Because Solana’s blockchain is known for its high-speed processing capabilities, PYUSD transactions on Solana will be much quicker, which will enhance the experience for end users.

Lower transaction costs: Solana offers low transaction fees, which will not only reduce the cost of sending and receiving PYUSD, but it will also make Solana a more attractive option for users looking to save on transaction costs.

More flexibility: Offering both Solana and Ethereum will offer users more choices for their transactions. Offering multiple blockchain allows users to choose different options based on their preferred cost and transaction speed.

Impact on Banks

Integration challenges: Traditional banks seeking to participate in the stablecoin market may need to adapt their systems to accommodate transactions that involve PayPal’s stablecoin on the Solana blockchain. These adaptations could require significant technical and regulatory challenges.

Competition: The race to stablecoin dominance has quieted among most traditional financial services providers in the U.S., but cross-border payments in all of their forms are still top-of-mind for many. As PayPal leverages the blockchain to offer faster and cheaper transactions, traditional banks may face increased competition.

Regulatory scrutiny: PayPal’s move onto Solana may attract further attention from regulators. This increased regulatory scrutiny may require financial institutions to pay more attention to their own operations and closely monitor regulatory developments to ensure that their own operations are compliant.

Impact on the Crypto market

Increased credibility: While it is not a bank, PayPal is a reputable player in the traditional financial services space. Because of its tenure and reputation in the space, the company’s adoption of Solana for its stablecoin operations offers credibility to the blockchain and crypto industries.

Boost for Solana: Solana will likely benefit from the partnership, as PayPal’s move serves as a vote of confidence for the blockchain and may lead to increased demand for Solana’s native token and may result in further adoption by other enterprises.

Shifting competition: PayPal’s selection of Solana may put pressure on Ethereum to improve its scalability and cost efficiency.

Overall, PayPal’s move is likely to enhance the efficiency and appeal of its digital currency offerings, drive broader adoption of blockchain technology, and spur innovation and competition in both the traditional financial sector and among crypto players.

PYUSD is issued and managed by Paxos Trust, a company whose products are subject to regulatory oversight by the New York State Department of Financial Services. Users can purchase PYUSD in the PayPal and Venmo wallets, as well as on, Phantom, and Paxos. All platforms offer a fiat-to-crypto user experience.

Photo by Muhammad Asyfaul on Unsplash

Fintech Rundown: A Rapid Review of Weekly News

Fintech Rundown: A Rapid Review of Weekly News

Investment and innovation are defining the wealth management space as the week begins. LA-based wealth management platform Altruist enters the week with $169 million more in capital, courtesy of a Series E round led by Iconiq Growth. Meanwhile, JP Morgan Chase announced that it has deployed generative AI to enhance its thematic investment offering.

Be sure to check back all week long for more fintech news!


Revolut launches its stand-alone crypto exchange for professional crypto traders, Revolut X.

MoonPay announces collaboration with PayPal to enable MoonPay users in the U.S. to buy crypto via their PayPal accounts.

Nayms partners with Coinbase to leverage on-chain technology for insurance transactions.

Community banking

New Peoples Bank turns to Jack Henry for its core processing technology and Banno Digital Platform.

Spend management

Expensify, the financial management super app for expenses and corporate cards, unveiled its new travel platform, Expensify Travel.


CoverTree, an insurtech specializing in manufactured home insurance, secures $13 million in Series A funding.

U.K.-based digital life insurance and income protection product company Eleos raises $4 million in seed funding.

Embedded insurance company CoverGenius inks partnership with Adyen.


Keybank introduces virtual account management powered by Qolo. launches its Payments-as-a-Service solution, Flow.

WaFd Bank selects Fiserv’s CashFlow CentralSM to expand payment capabilities for small businesses.

NAB and Banked team up to launch Pay by Bank for Australian merchants.

YES BANK and EBANX partner to empower cross-border commerce in India.

Crowded launches international currency transfers for nonprofits, enabled by Visa Direct and Cross River.

Fraud prevention

AML and fraud risk mitigation company Unit21 launches ACH Risk Scores and Action Event Rules.

Investing / Wealth management

Life insurance and wealth management solutions provider iPipeline introduces its first Chief Product Officer Katie Kahl.

Wealth management platform Altruist raises $169 million in Series E funding.

JP Morgan Chase introduces its IndexGPT thematic investing tool.

Pure Financial Advisors generates more than $1 billion in new AUM through its SmartAsset partnership.

Data and analytics

Bank personalization engine company Moneythor appoints Martin Frick as its new Chief Executive Officer.


AI Squared acquires open-source reverseETL technology company Multiwoven.


Planet Home Lending appoints Paul Walker as Chief Financial Officer.

Libro Credit Union seeks to enhance its lending operations via a transition to nCino’s cloud banking platform.

Communication & Virtual Assistants

How Eltropy’s AI-powered conversations platform helps 3 FIs reduce delinquencies.

Wipro collaborates with Microsoft to launch a suite of generative AI-powered virtual assistants for financial services.

Digital banking

Velmie and Unlimit partner to accelerate European Fintech growth.

FIS launches Atelio to provide the building blocks for BaaS and embedded finance.

Small business

Mercury launches new software to help businesses simplify financial workflows: billpay, accounting automations and employee reimbursement tools.

Basware acquires AP Matching. 

KeyBank launches KeyVAM, a virtual account management solution powered by Qolo for treasury management clients who have complex demand deposit account structures.


Global RegTech consolidator Corlytics acquires Deloitte UK’s RegTech platform.

Embedded finance

Issuer-processor Paymentology teams up with Diamond Trust Bank to bring embedded finace solutions to customers in Kenya.

Accelerators and incubators

Ally Financial launches its Ally Innovation Challenge to promote solutions leveraging Responsible AI.

Photo by Towfiqu barbhuiya on Unsplash

Tales from the Crypto: Funding Startups, Fighting Fraud, and Why the U.S. is a CBDC Laggard

Tales from the Crypto: Funding Startups, Fighting Fraud, and Why the U.S. is a CBDC Laggard

This week in Tales from the Crypto we look at some traditional and alternative ways that investors are backing their favorite cryptocurrency companies, examine a new report explaining why the U.S. lags behind its peers when it comes to central bank digital currencies (CBDCs), and learn about U.S. Department of Justice charges – and a guilty plea- in a $1.9 billion dollar crypto pyramid scheme.

Swiss digital asset bank Sygnum scores new funding

Has crypto winter yielded to the year’s first crypto unicorn? Swiss crypto banking group Sygnum has raised $40 million in strategic funding in a round led by Azimut Holdings. The round gives the firm a valuation of $900 million, not quite enough for a unicorn horn, but more than enough to raise not just eyebrows but new expectations at what might be in store for cryptocurrency businesses and the funds that invest in them.

The company will use the capital to fuel its expansion into new markets in both Europe and Asia. The investment will also accelerate development of Sygnum solutions such as its bank-to-bank platform, currently supporting crypto offerings from more than 15 banks and FIs around the world.

“Our core thesis has always been that Future has Heritage, and our strategy to build trust via regulation and good governance has guided us throughout all market cycles,” Sygnum co-founder and Group CEO Mathias Imbach said. He underscored the challenge of “closing a successful funding round” in the current financial environment, which fellow co-founder and CEO of the company’s Singapore office Gerald Goh called “a testament to Sygnum’s strong and unique position as a leading regulated financial institution in the global digital asset industry.”

Report: U.S. progress on CBDCs lagging other nations

Former President Donald Trump said recently that he would “never allow the creation of a central bank digital currency (CBDC).” As the front runner for the Republican nomination for President this year, Trump’s words are worth paying attention to.

But according to a new report, the future of any U.S.-created CBDC has plenty of issues – even without the antipathy of the once (and maybe future) U.S. president. According to a report from think tank Atlantic Council, the U.S. is falling behind other countries that are exploring or developing CBDCs. The Council claimed that the U.S. Federal Reserve has deployed “less than 20” people to work on research and development on CBDCs. By contrast, the Council said that the People’s Bank of China has more than 300 people working on their CBDC project. The effort in the U.K. was also praised compared to the U.S., with the Council favorably noting that the Bank of England had deployed a joint task force including both the Treasury and Parliament.

The Atlantic Council says that there is an innovation gap between the U.S. and other developed nations when it comes to CBDCs. The Council also criticized the relatively slow rollout of the U.S. interbank settlement system compared to similar systems in Europe that were deployed sooner. And while the Council accepts that there’s no reason to “disrupt the currency that underpins the global economy,” it still believes that the U.S. dollar needs to “innovate.”

PayPal invests $5 million stablecoin in Mesh

The Fed may not have much faith in crypto. But PayPal is putting $5 million worth of its own crypto to work in support of embedded crypto payments startup Mesh. PayPal announced that it has invested $5 million worth of its own U.S. dollar denominated stablecoin, PayPal USD (PYUSD), in the company, which facilitates digital asset transfers and account aggregation.

This investment, announced this week, marks the first time PYUSD has been used as the funding instrument for an investment by PayPal Ventures. “The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the U.S. dollar,” PayPal president and CEO Dan Schulman said last year when PYUSD was introduced. “Our commitment to responsible innovation and compliance, and our track record delivering new experiences to our customers, provides the foundation necessary to contribute to the growth of digital payments through PayPal USD.”

Founded in 2020, Mesh enables companies to integrate crypto payments and transfers directly into their existing platforms. The firm has more than 300 integrations with exchanges, digital wallets, and brokerages. This week’s funding follows a $22 million Series A funding round Mesh closed in September. Bam Azizi is co-founder and CEO.

DOJ announces charges, guilty plea in cryptocurrency fraud scheme

On the “Law & Order: Crypto Edition” front, the U.S. Department of Justice has levied criminal charges against two individuals – and accepted the guilty plea of a third – for their involvement in a cryptocurrency fraud scheme called HyperFund. The SEC charged two of the three individuals civilly for their role in what they allege to be a $1.89 billion cryptocurrency pyramid scheme.

The U.S. Attorney for the District of Maryland, Erek L. Barron, called the amount of fraud “staggering.” Barron added “whether it’s cryptocurrency fraud, or any other financial frauds, if it sounds too good to be true, it probably is.”

The scheme ran from June 2020 through November 2022, alleges the Department of Justice. The scheme’s conspirators are alleged to have told investors that they would earn daily returns of between 0.5% and 1% until their initial investment doubled or tripled thanks in part to revenues from crypto mining operations. The DOJ alleges that HyperFund began blocking investors from withdrawing their money in July of 2021 and the scheme collapsed the following year.

According to the SEC, one of the conspirators who agreed to settle civil charges of violating securities laws against fraud, had received more than $3.7 million from the HyperFund platform and its investors. This individual is also the one who has already pled guilty to a single count of conspiracy to commit securities fraud and wire fraud. The maximum sentence for all three conspirators is five years in prison if convicted.

Odds and Ends

  • Former U.K. Chancellor of the Exchequer George Osborne joined Coinbase’s advisory council.
  • Payments infrastructure provider Transak teamed up with Visa to support conversion of crypto into local fiat currencies.
  • Cryptocurrency platform Kraken introduced new Chief Operating and Product Officer Gilles BianRosa.
  • Reuters reported that FTX has abandoned the idea of relaunching its exchange and will instead pursue a liquidation with a goal of repaying customers in full.
  • Ethereum co-founder Vitalik Buterin shared his thoughts on the present and future of cryptocurrencies in a blog post this week.

Photo by Traxer on Unsplash

A Look into PayPal’s 6 New Releases

A Look into PayPal’s 6 New Releases
  • PayPal CEO Alex Chriss released a video yesterday unveiling the company’s six new planned launches for the year.
  • PayPal’s new launches include a faster checkout experience, Fastlane, Smart Receipts, advanced offers, CashPass, and updated Venmo business profiles.
  • PayPal will release all of these in the U.S. this year and plans to roll them out across the globe in the future.

Yesterday, PayPal released an Apple-like launch video in which the company’s new CEO Alex Chriss unveiled six of the company’s newest initiatives. In the 17-minute video, which has already received 2.1 million views on YouTube, the payments company unveils the six new innovations it plans to bring to market this year.

Here’s a look at what PayPal expects to release this year:

Faster checkout

To help reduce cart abandonment at checkout, PayPal said it will accelerate the checkout process to get customers to choose PayPal and leverage passkeys to enable customers to log in with their face or fingerprint with one tap. The company says that the implementation of biometrics will not only reduce latency by as much as 50%, but it will also enable customers to check out twice as fast.


Fastlane by PayPal is the company’s new, one-click guest checkout tool that PayPal merchant clients can implement into their online checkout flow. When customers are ready to checkout, they are offered the option to save their information with Fastlane to check out in a single tap. With Fastlane, shoppers do not need to remember their username or password, nor do they have to update personal information or share their credit card credentials with each merchant.

PayPal partner BigCommerce has been piloting Fastlane with its merchant customers, and has reported that Fastlane can recognize 70% of guest checkout users.

Smart Receipts

Smart Receipts will leverage AI to help merchants show consumers personalized product suggestions along with a cashback reward offer on the receipt. When a consumer opens their email receipt– which 45% of PayPal customers do– they will see a new product recommendation at the bottom. The offers help merchants open the door to repeat purchases from customers they have already worked hard to acquire.

Advanced offers

Advanced offers shows consumers more relevant ads by showing them products based on the SKU data of their actual purchases, not just their browsing history. The advanced offers capability will also allow merchants to customize the offers. And PayPal will only change merchants based on performance, not just impressions or clicks.

On the consumer side, PayPal’s use of purchasing data means that they will see more relevant offers based on product details such as type and color. The company has also implemented privacy controls that allow users to opt out of data sharing.


Launching this March, CashPass will offer consumers personalized cash back offers from top brands. To redeem an offer, users tap on the offer, shop at the business, and check out using PayPal. Shoppers can stack the savings with other rewards, such as the PayPal Cashback Mastercard.

PayPal’s CashPass launch partners include Best Buy, eBay, McDonald’s, Priceline, Ticketmaster, Uber, and Walmart.

Updated Venmo business profiles

Venmo first introduced business profiles in 2021 in an attempt to capture more revenue from small businesses using their personal Venmo account to accept payment. This year, Venmo will enhance business by allowing them to add subscribe buttons, offer promotions to consumers, and show profile rankings.

All of these updates will begin rolling out in the U.S. this year, though PayPal only offered more specific timing on CashPass, which it said will launch this March. The company also made note that it plans to launch all of these features in more geographies at some point.

Founded in 1998, PayPal handles nearly 25 billion transactions a year for nearly 400 million consumer accounts and 35 million merchants in more than 200 markets around the world. Despite the number of announcements, the market is reacting poorly to PayPal’s release this week. At the time of publishing, the company’s stock is down 0.12%.

Photo courtesy PayPal

FinovateEurope Best of Show Winner Finshape Partners with Arab National Bank

FinovateEurope Best of Show Winner Finshape Partners with Arab National Bank

Digital banking solutions provider Finshape announced a strategic collaboration with Arab National Bank (anb). The partnership will enable anb to leverage Finshape’s personalization and data analytics platform to enhance its digital banking services. The bank will also be able to take advantage of Finshape’s latest offering, Money Stories. This new solution categorizes spending and provides forecasts to help individuals better track their finances. At the same time, Money Stories empowers banks to make personalized, relevant offers to their customers.

“This collaboration reflects our commitment to speed up innovation and customer-centricity in the Middle Eastern banking scene,” Finshape Chief Growth Officer József Nyíri said. “Together with anb, we aim to transform how customers manage their finances, providing them with tailored solutions that empower them to reach their financial aspirations.”

Finshape demoed Money Stories in its Best of Show-winning debut at FinovateEurope 2022. Inspired by Instagram Stories, Finshape’s Money Stories helps banks boost engagement and enhance the customer experience. The solution highlights key financial events in the user’s life via short, seven to ten second snapshots. The shots are swipeable and easy to view and digest, providing a unique and memorable way for users to track their finances.

“(The) integration of a social media story-like format within our banking app, mark(s) a significant milestone in Saudi Arabia’s financial landscape, setting a precedent for engaging and educational digital interactions,” Arab National Bank COO Aiedh Al-Zahrani said

After winning Best of Show in 2022, Finshape returned to the Finovate stage the following year for FinovateEurope 2023. With 100+ clients in 25 countries, and more than 20 million users, Finshape ended last year with collaborating with Banca Transilvania, helping the bank launch its BT Go app. Designed to support corporate banking, BT Go offers an intuitive overview of business finances, unified card management, and automated invoicing. Within a month after launch, the solution has garnered 1,400 active users.

Finshape was founded in 2021 via the combination of Czech Banking Software Company (BSC) and Hungarian fintech W.UP.

Interested in demoing at FinovateEurope in London next month? Applications are still being accepted from innovative companies with new solutions that are ready to show. Visit our FinovateEurope hub today to learn more.

Here is our look at fintech innovation around the world.

Middle East and Northern Africa

  • Pontera, an Israel-based software platform for financial advisors, raised $60 million in new funding.
  • Egyptian fintech and customer loyalty app Zeal secured $4 million in funding.
  • The Central Bank of Oman granted Paymob a Payment Service Provider (PSP) license.

Central and Southern Asia

  • Kumari Bank, a commercial bank based in Nepal, partnered with Compass Plus Technologies to enhance its payments processing.
  • India’s Hitachi Payment Services launched its financial inclusion initiative Money Spot Plus.
  • Raqami Islamic Digital Bank (RIDB) forged a partnership with Euronet Pakistan to boost digital payments in the region.

Latin America and the Caribbean

  • Latin American embedded banking company Prometeo secured $13 million in new funding courtesy of investments from PayPal and Samsung.
  • Argentina-based payments infrastructure company Pomelo raised $40 million in Series B funding.
  • Contxto looked at the challenges Mexican fintechs are facing in meeting the standards of the country’s new fintech law, enacted in 2018.


Sub-Saharan Africa

Central and Eastern Europe

  • Romanian fintech Finqware introduced its FinqPayments solution to enhance financial services for medium-to-large businesses in Europe.
  • German challenger bank N26 launched stock and ETF trading, starting first in Austria.
  • iDenfy, an identity verification company headquartered in Lithuania, announced a partnership with Latvian online gaming company SPINS.

Photo by Alamin Prodhania

PayPal Gets a New CEO

PayPal Gets a New CEO
  • PayPal has appointed Alex Chriss as its new CEO.
  • Chriss, who will replace current CEO Dan Schulman, will begin his role on September 27.
  • Chriss comes to PayPal after a 19-year tenure at Intuit.

Fintech pioneer PayPal is back in the headlines today. After unveiling the launch of its stablecoin last week, the California-based company announced it has appointed Alex Chriss as new CEO.

Chriss will replace Dan Schulman on September 27 of this year. This comes after, earlier this year, Schulman declared his intention to retire. “I’m at a point in my life where I want to devote more time to my passions outside the workplace,” Schulman said in February. He will remain on the company’s Board until May 2024.

After Schulman’s statement, PayPal’s Board of Directors began a six-month long search for a new CEO who could not only drive growth, but also had extensive global payments, product, and technology experience. After an “extensive engagement and evaluation,” PayPal’s Board unanimously agreed on Chriss to lead the company.

“With his depth of experience in product development, his passion for serving customers and his longstanding commitment to empowering and enabling small businesses, and his proven track record of developing and inspiring his team, Alex is the perfect leader to take PayPal forward and accelerate the company’s growth opportunities,” said Chair of the PayPal Board of Directors John Donahoe. “The Board search committee worked diligently and thoroughly to find the right candidate to take PayPal into its next stage of growth and expansion, and we are confident Alex is that person.”

Chriss will join PayPal and its Board from Intuit, where he served as Executive Vice President and General Manager of the company’s Small Business and Self-Employed Group. He has been with Intuit for more than 19 years after starting out as a Group Manager of Business Development and Channel Sales of the Quickbase business unit.

During his tenure at Intuit, Chriss grew the Small Business segment’s customers at a 20% CAGR and its revenues at a 23% CAGR. In 2021, he led Intuit’s successful $12 billion acquisition of Mailchimp.

“PayPal is an extraordinary company that plays a critical role in the lives of consumers and merchants all over the world,” said Chriss. “Throughout my career, I have championed small and medium businesses and entrepreneurs, who are the backbone of every economy in the world. I am proud to take the baton from Dan and thrilled to have the opportunity to work with PayPal’s talented and committed team to build on PayPal’s remarkable history and draw on its unique capabilities to deliver outstanding products and services to businesses and consumers.”

PayPal Launches USD-Denominated Stablecoin, PayPal USD

PayPal Launches USD-Denominated Stablecoin, PayPal USD
  • PayPal launched its new stablecoin, PayPal USD (PYUSD) today.
  • PayPal USD is backed by U.S. dollar deposits, short-term U.S. treasuries, and cash equivalents. The coin is redeemable 1:1 for U.S. dollars.
  • The new offering is designed for digital payments and Web3 and will be available on Venmo “soon.”

Fully backed by U.S. dollar deposits, short-term U.S. treasuries, and cash equivalents, PayPal’s new stablecoin, PayPal USD is now live. The stablecoin – PYUSD – is designed for digital payments, and is compatible with most digital asset exchanges, wallets, and Web3 apps. Eligible U.S. PayPal customers who buy the coin will be able to transfer it to external wallets, send it via P2P payments, and use it to fund purchases at PayPal-supported checkouts. PYUSD holders will also be able to convert their cryptocurrencies into and from PYUSD, which is redeemable 1:1 for U.S. dollars.

PayPal president and CEO Dan Schulman said that the successful adoption of crypto will need stablecoins like PYUSD. “The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the U.S. dollar,” Schulman explained. Moreover, Schulman noted that PayPal – with its “commitment to responsible innovation and compliance” – and powerful brand – is in an ideal position to play this role via its PayPal USD offering. He added that PYUSD will be compatible with Web3 apps from the start and will soon be available on Venmo, as well.

PayPal USD is an ERC-20 token issued on the Ethereum blockchain. The stablecoin is managed by Paxos Trust Company. Paxos has indicated that it will publish a monthly Reserve Report for PYUSD outlining the instruments composing the coin’s reserves. The first such report is expected in September.

PayPal has been a Finovate alum since 2011. In the years since, the fintech has grown into a payments leader with more than 435 million active consumer and merchant accounts, and nearly 30,000 employees. The company has facilitated more than 22 billion payment transactions, representing a total payment volume of $1.36 trillion. Founded in 1998 (as Confinity), eBay acquired the company in 2002 for $1.5 billion. eBay spun off PayPal to its shareholders in 2015, returning the firm to its independent status.

PayPal has accelerated its embrace of digital assets and cryptocurrencies in recent years. This spring, the company enabled crypto transfers for Venmo customers. This added to the buy, hold, and sell crypto functionality PayPal introduced in 2021. PayPal also offers a Cash Back to Crypto feature for Venmo credit cardholders, which provides auto-purchase of selected cryptocurrencies.

PayPal is a public company, trading under the ticker symbol PYPL on the NASDAQ exchange. The San Jose, California-based fintech has a market cap of $71 billion.

Photo by Sebastian Voortman

New from PayPal: Tap to Pay for Venmo and Zettle’s Android-Based Merchants

New from PayPal: Tap to Pay for Venmo and Zettle’s Android-Based Merchants
  • PayPal is launching Tap to Pay on Android for U.S. Venmo and Zettle business users.
  • The new capability will enable merchants to accept contactless payments without additional hardware.
  • All Venmo business users will have access to Tap to Pay in the coming months.

PayPal has been on a quest to improve the checkout experience since its launch in 1998. The California-based company is continuing that journey today by rolling out Tap to Pay on Android for the U.S. business users of two of its subsidiaries– Venmo and Zettle.

The new capability enables merchants to accept contactless payments on their Android mobile devices without additional hardware. After a short onboarding process, Venmo business users can use the Venmo app to manage funds received via both Venmo and card. Regardless of the transaction type, all funds will settle into the business’ Venmo account to facilitate cash flow management.

“Tap to Pay is the last milestone in the democratization of in-person card payments, where users can start taking card payments with no setup cost in a matter of minutes,” said PayPal Head of Product, Microbusiness Ed Hallett. “We’re unlocking access to this capability for the millions of businesses using Venmo and PayPal Zettle, helping them drive sales with frictionless payment options.”

All Venmo business users will have access to Tap to Pay in the coming months, but the new capability is also currently available by request.

PayPal-owned Zettle first launched Tap to Pay on Android for Zettle users in the U.K., Sweden, and the Netherlands last May, and has since rolled out the technology for Zettle users in more regions– including in the U.S.

While Apple unveiled Tap to Pay on iPhone last April, Stripe was the first company to bring the technology to merchants with Android devices. The payment service provider launched Tap to Pay in February of this year for merchants in the U.S., Canada, the U.K., New Zealand, Australia, and Singapore.

Venmo Adds Crypto Transfers

Venmo Adds Crypto Transfers

PayPal-owned Venmo is continuing its journey into DeFi this month. Late last month, the California-based company unveiled a new peer-to-peer crypto transfer capability. The new feature enables users to transfer crypto to friends and family using Venmo, PayPal, and external wallets and exchanges.

Venmo first introduced crypto to its users in 2021, but the capabilities were limited. Within the Venmo app, users could only buy, hold, and sell cryptocurrency. This month’s development adds to the company’s crypto wallet capabilities, rounding out the utility from saving and investing into spending and giving.

The company reports that, over the past year, more than 74% of its crypto customers have continued to hold crypto in their accounts. “In addition,” today’s announcement said, “since the beginning of 2023, nearly 50% of customers with existing crypto balances have added to their crypto holdings on Venmo.”

To send their crypto to friends and family, customers use the Crypto tab within the Venmo app and use the transfer arrows to transfer a select amount of their crypto to a Venmo account, or to a recipient’s PayPal wallet address or other external wallet. To receive crypto, users show their unique crypto address QR code with other users.

Select Venmo customers will have the ability to send crypto transfers starting this month. The company will roll out the new capability to more users over the coming months.

Photo by Thought Catalog

PayPal and Venmo Pilot P2P Payments Interoperability Tool, Visa+

PayPal and Venmo Pilot P2P Payments Interoperability Tool, Visa+
  • Visa is launching Visa+, a peer-to-peer payments interoperability tool.
  • PayPal and Venmo are piloting the launch.
  • Visa partners DailyPay, i2c, TabaPay, and Western Union will also integrate Visa+ within their platforms.

Fintech has solved a lot of problems by creating a multitude of different peer-to-peer (P2P) payment apps. In so doing, however, it has also created a problem– the platforms are not interoperable. Many people use different payment apps, and they don’t all work together. Visa is seeking to solve this issue with its new launch, Visa+, which helps users move money between different P2P payment apps.

Piloting the launch of Visa+ are PayPal and Venmo. After setting up a personalized payment address linked to their Venmo or PayPal account, users of either app can send and receive payments between the two platforms. Visa+ serves as the backend infrastructure behind the transfer.

PayPal and Venmo users will be able to begin using Visa+ later this year. Visa partners DailyPay, i2c, TabaPay, and Western Union will also integrate Visa+ within their platforms. The addition of new apps and platforms will not only increase the reach of Visa+, but it will also have the potential to add new use cases– such as payouts for gig workers, creators, and online marketplace sellers.

“Consumers continue to seek simple and seamless ways to digitally move money between friends and family, including the ability to send money between different payment platforms,” said Visa Global Head of New Payment Flows Chris Newkirk. “We are thrilled to partner with like-minded innovators to broaden the reach of P2P payments across platforms. Through this collaboration, Visa+ can help break down barriers for payment app users as they connect, engage and move money.”

While PayPal and Venmo are as good a starting point as any for P2P payments interoperability, there are many other players– Square Cash, Zelle, Google Wallet, and Apple Wallet– that should be added to maximize the utility of Visa+ and make it an everyday tool for U.S. users. Visa expects to launch Visa+ with select partners in late 2023. The company is planning general availability in mid-2024, so we may see additional partners in the later launch.

Photo by Brett Sayles

Bold Commerce and PayPal Partner to Create a More Flexible Checkout Experience

Bold Commerce and PayPal Partner to Create a More Flexible Checkout Experience
  • Bold Commerce and PayPal struck up a partnership that will better integrate payments into more checkout experiences.
  • Using Bold Commerce’s headless checkout tool, retailers can place a point-of-sale wherever shoppers interact, including on blogs, within social media, and even on the packaging of a physical good.
  • The new solution is available in Bold Commerce’s Checkout Experience Suite.

Customizable commerce company Bold Commerce announced today it is collaborating with PayPal to better integrate payments into the checkout experience. Because, as Bold Commerce Co-Founder Yvan Boisjoli puts it, “The checkout experience needs to extend to everywhere shoppers are today, which also means that a full range of payment options need to be available to shoppers wherever they are.”

Using Bold Commerce’s PayPal-enabled tool, retailers can put the checkout wherever shoppers interact. A point of sale can be placed on blogs, within social media, and even on the packaging of a physical good with a QR code printed on the label. Upon checkout, consumers can use a range of payment options, including PayPal, Venmo, PayPal Pay Later, credit and debit cards, and multiple local payment methods.

“Payment choice and flexibility have always been a critical part of a successful commerce experience – but it’s only one part of the equation. Retailers today need to also offer a tailored checkout experience to help drive increased conversion,” said PayPal VP, Global Head of Channel Partnerships David Bruce. “It’s a powerful combination for a composable checkout to plug into any tech stack, and we’re excited to deepen our commerce capabilities with Bold Commerce.”

The new, flexible checkout method is expected to increase checkout conversion on merchant websites and what Bold Commerce is calling “shoppable touchpoints,” which will drive more revenue by decreasing friction. The headless, all-in-one payments and checkout solution is available in Bold Commerce’s Checkout Experience Suite.

“Through this new integration we’re making it easy and accessible to power checkout anywhere, with any payment method. We’re looking forward to working with PayPal as they make this move into headless commerce,” added Boisjoli.

Bold Commerce was founded in 2012. The Canada-based company’s Checkout Experience Suite offers a customizable headless checkout tool with built-in subscription and pricing capabilities. Bold Commerce counts more that 9,000 brands and retailers as clients, including Pepsi, Mars, and Williams Sonoma.

Bold Commerce has raised $44 million and has been named to Deloitte’s Tech Fast 50, E&Y’s Entrepreneur of the Year, and CBInsights’ Retail Tech 100.

Photo by Adrien Delforge on Unsplash

Xoom Adds Cross-Border Money Transfers to Debit Card Deposit Product

Xoom Adds Cross-Border Money Transfers to Debit Card Deposit Product
  • PayPal-owned Xoom has added international money transfers to its Debit Card Deposit product.
  • Leveraging a partnership with Visa, U.S. users can send funds directly to recipients’ eligible Visa debit cards.
  • Debit Card Deposit originally launched domestic transfers in 2020.

PayPal’s international money transfer service Xoom added a new debit card feature today that will help users send money across international borders. Leveraging a partnership with Visa, Xoom’s Debit Card Deposit product now facilitates international money transfers.

Debit Card Deposit originally launched in 2020 to allow customers to send funds within the U.S. Today’s addition will enable Xoom customers in the U.S. to use the Xoom mobile app or web interface to send money across the international border directly to friends or family using their debit card. Recipients, who will receive the funds on their eligible Visa debit card, will be able to access the funds in real-time.

“We know that getting funds quickly and easily is important for many of our customers, which is especially true around the winter months and the holidays when people are sending money to their friends and family around the globe,” said PayPal Vice President of Remittances Wei-Lin Lee. “This expansion, through our partnership with Visa, will help more customers around the world get a fast and convenient way to access necessary funds needed for everyday essentials.”

Funds can be sent to 25 countries, including Bosnia and Herzegovina, Bulgaria, Costa Rica, Croatia, Czech Republic, Great Britain, Greece, Guatemala, Hungary, Indonesia, Israel, Italy, Jamaica, Lithuania, Malaysia, Pakistan, Philippines, Romania, Singapore, Slovakia, Spain, Sri Lanka, Thailand, Ukraine, and Vietnam. Xoom will add more regions later this year.

Xoom was founded in 2001 and was acquired by PayPal in November of 2015 for $890 million. The company enables peer-to-peer money transfers that can be sent directly to the recipient’s bank account or debit card. Recipients also have the option to pick up physical cash at brick-and-mortar partner locations or receive the cash at their doorstep via a delivery.

Photo by Lara Jameson