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PayPal has recently made a milestone after completing a first business payment using its dollar-pegged stablecoin, PayPal USD (PYUSD) to one of the Big Four accounting firms, Ernst & Young through the SAP platform, a digital currency hub.  

According to Jose Fernandez da Ponte, PayPal’s senior vice president of its blockchain, cryptocurrency and digital currency group, the payment is a demonstration of the other use cases for digital currency apart from the consumer-facing benefits of stablecoins. 

Explaining the reasons behind the business transaction, Fernandez da Ponte claimed that business-to-business transactions, especially cross-border, can be expensive and, in some cases, risky, with the reliance on third parties. PayPal’s senior vice president also mentioned that the speed and availability of settlement make it the ideal choice. 

Some businesses, especially in countries with unstable currencies, have turned to stablecoins like Tether for cross-border payments. 

According to a Bloomberg report, this trend is gaining momentum as service providers make it easier to use stablecoins. 

For example, payments platform BVNK now allows businesses to send US dollars via Swift and then convert them into stablecoins for payments to global partners, including support for PayPal’s stablecoin.
Fernandez da Ponte further stated that Paypal will be working with established partners in various industries to demonstrate the utility of stablecoin-enabled business payments.