Payments giant PayPal has completed the first commercial payment using its proprietary stablecoin, successfully transferring its PYUSD to accounting firm Ernst & Young LLP’s account at Coinbase Prime, Bloomberg reported.

SAP Digital Currency Platform

PayPal made the payment on September 23 using the company’s stablecoin PYUSD, and completed the transaction through SAP’s digital currency platform.​

SAP is a German enterprise application software solution provider that mainly provides enterprise resource planning (ERP) software to help companies manage business processes more efficiently. Their solutions cover areas such as financial management, customer relationship management (CRM), supply chain management, human resources management, and more.

SAP’s Digital Currency Hub is an innovative platform launched by SAP to explore the potential of using stablecoins for international business transactions. SAP Digital Currency Hub can be integrated with the SAP ERP system to automate the stablecoin payment and reconciliation process, which also means that enterprises can make cross-border payments faster, more securely, and make reconciliation easier.

Use PYUSD for B2B payments

PayPal has successfully transferred its PYUSD to accounting firm Ernst & Young LLP’s account at Coinbase Prime through SAP’s digital currency platform.

Steve Everett, director of market development at PayPal, said:

B2B payments are ripe for innovation, and digital currencies can provide extremely high value in these use cases. Using digital currencies like stablecoins, payments can be made 24/7, with funds transferred almost instantly and settled in near real-time, allowing businesses to put their money to work faster.

PYUSD has a market capitalization of nearly 700 million

Global payment giant PayPal and stablecoin issuer Paxos collaborated to launch the U.S. dollar stablecoin PayPal USD (PYUSD) in August last year, taking advantage of PayPal's global payment application scenarios and using it in remittance services, B2B payments and digital goods payments. Determined to become the intermediary between legal currency and Web3.

However, according to data from CoinGecko, although PYUSD’s market capitalization exceeded $1 billion in August, the stablecoin’s current market capitalization is approximately $690 million, ranking only seventh among stablecoins.

Judging from this case, PayPal is trying to promote the application scenarios of its own stable currency with Coinbase, a compliant listed exchange, and the SAP platform that traditional enterprises rely on. It is still expected whether it can slowly increase public acceptance.

This article PayPal successfully uses PYUSD stable currency to achieve instant commercial payments first appeared on Chain News ABMedia.