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Writing: Will Awang
On May 31, 2024, PayPal announced that its stable coin PayPal USD (PYUSD) was launched on the Solana blockchain.This is another major mileage since PayPal launched Pyusd on the main network of Ethereum last August. It not only provides a new and efficient payment method for its users, but also provides an important reference for the future trend of the entire payment industry.
I was writing beforeWeb3 payment research reportAnd in the process of exchanges with industry companies, always thinking about a question: Is it really necessary for stable currency payment?It happens that PYUSD is online solana. From a very pragmatic perspective, PayPal gives an answer to freedom of payment:
“People want to pay at will. The current payment network is difficult to meet the needs. Crypto can meet the needs and practicality. As a fintech company dedicated to promoting payment innovation, we will launch a stable currency payment plan to meet what people currently want to do whatever they want.Payment demand “
As a result, this article will try to analyze Paypal’s inherent logic to Crypto, Pyusd’s online -launched stable currency payment solution, and Pyusd’s evolutionary idea to Mass Adoption.I hope to give the industry for reference, welcome to exchange and discuss.
1. Why does PayPal turn your eyes to Crypto
As the world’s leading payment company, PayPal has more than 20 years of global payment experience.In the past two decades, with the mature development of e -commerce, what PayPal has done is not only to make themselves a lighthouse, to provide users with a trust endorsement of transactions, but also realize the major Internet digital payment network (Digital Payments).Scales are popular.
PayPal’s original intention has not changed -promoting payment innovation so that everyone can pay according to their own wishes.
But so far, payment innovation is based on the same basic financial track as the Internet rise.Although the industry has been working hard to provide global, instant, and seamless transactions, reality often shows the insufficient side:
The settlement time of online payment is still long (in the United States, with an average of 2 to 3 days), markets, banking and service providers need to be opened on working days to further extend the settlement time; it is difficult for employers to pay to the increasingly distributed labor force; increasingly globalizationThe population is difficult to make cross -border remittances in a low and efficient way; companies often feel this kind of friction, and consumers are still waiting for a long time in their considering payment environment.
In short, today’s people cannot pay in the way they want.
This is why PayPal turned its eyes to Crypto. The answer is simple: it can meet the needs and it is practical.
Cryptocurrency and blockchain technology can make people closer to the desire to realize payment: fast, cheap, and global payment.This new next -generation finance/payment infrastructure can help PayPal better serve its 40 million users, so that everyone can pay according to their own wishes.
Therefore, more than ten years after the emergence of cryptocurrencies and blockchain technology, PayPal came to the critical moment of payment history. This moment is like the Internet in early 2000, full of potential and opportunities.
Just like PayPal brought payment to the Internet before, PayPal is now bringing the payment to the chain.
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(FlywheelDefi.com/article/paypal-teps-n-chain-with-pyusd)
2. Global payment dilemma needs to be improved
The current payment channels and information transmission protocols (such as ACH, SEPA, and Swift) constitute a network of global payment.They enable us to carry out large -scale transactions across regions and regions and ensure that the payment is relatively smooth.But at the same time, the current payment technology will also force us to weigh between 1) payment settlement speed, and 2) cost benefits, such as:
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The circulation of funds will be expended, and the intermediate parties of each circulation need to be arranged in advance and liquidity requirements;
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The operation time limit (working day) and massive treatment of the parties of all parties means that payment may require a few days to settle;
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The arrangement of net settlement is difficult to meet the needs of small and high -frequency transactions.
However, for adults, we do not make choices, both of us are ——That is, efficient settlement.
What people want is to pay more easily.Enterprises hope to pay to suppliers without having to worry about settlement time; individuals hope to remit money to family members from distant people without paying high fees and waiting days.Today’s financial infrastructure cannot quickly meet the needs of people’s rapid transactions. PayPal does not want users to lose value in this waiting.
today,Cryptocurrency and blockchain technology provides a new payment channel that can simplify the payment clearing process, making the payment quickly, cheap and easy to access.
As a result, we need to use cryptocurrency and blockchain payment technology solutions to solve the leftover problems of traditional payment: 1) Slow settlement time; 2) High transaction costs; and 3) Globally, the current financial system cannot coverThe incompatibility of the region (Under-BANKed and University).
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3. PayPal’s stable currency payment solution
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(The stable coin of Paypal Paypal is expected to lead the encryption industry to the mainstream)
Definition of stablecoin: Most cryptocurrencies have fluctuated greatly and are not suitable for payment. Just as Bitcoin may have a large amplitude in a day.And stabilizing currency is a cryptocurrency designed to solve this problem by maintaining stable value, which is usually linked to the legal currency (such as the US dollar) 1: 1.Stable currency has the advantages of both the beauty: they maintain lower daily fluctuations, and at the same time provide the advantages of the blockchain -efficient, economical and global universal.
PayPal’s stablecoin Pyusd is a new stable currency payment solution, which aims to achieve the next generation of fintech innovation.Pyusd is based on Paypal’s deep payment industry accumulation and Solana high -performance blockchain. It can achieve efficient and instant settlement, reduce transaction costs, and highly safe and truly global payment.
Pyusd is a stable value storage tool based on the blockchain ($ 1: 1 exchange) launched by PayPal. Its emergence will solve the above problems in the global payment industry.Eligible American users can buy, sell, send, receive pyusd, and use it for payment:
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Buy and transfer Pyusd in PayPal and Venmo ecology to achieve a silky access gold experience;
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Use PYUSD payment as a payment method for online transactions, such as checkout and payment of millions of PayPal merchants worldwide;
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Pyusd’s cross -border P2P payment on Xoom (cross -border payment tool);
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In addition to the PayPal ecosystem, PYUSD can be used on cryptocurrency exchanges (such as Crypto.com) and wallets (such as Phantom);
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Pyusd can also be used for various innovations, for example, Pyusd can be used as fast and low -cost financing tools for venture capital such as MESH.
Pyusd is building a real stable coin business scenario, and provides almost no friction and trustworthy payment experience that mainstream consumers and merchants expect.
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Four,Paypal stable currency payment is moving towardsMass Adoption’s evolution idea
Based on PayPal’s global payment compliance experience in the past 20 years, and the highest compliance standards of Pyusd, PayPal + Pyusd’s combination can upgrade the previous stablecoin transaction of Stablecoin Transaction, which has become what we really needStablecoin PaymentsEssence
At the beginning of the establishment of PayPal, the responsibility of shouldered not only promoted the implementation of payment, but also included the introduction and dissemination of a new technology -digital payment. At present, the method of digital payment has been integrated into our lives and everywhere.This successful experience can provide experience guidance and novel insights for the launch of PYUSD stable coins.Specifically, PayPal divides the evolution of Mass Adoption into three stages:
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Awareness (AWareness);
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Payment utility (Utility);
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Ubiquity.
4.1 Introduction to concepts bring cognitive awakening
As mentioned earlier, the payment is everywhere, and it is deeply rooted in the habits and practice. Therefore, the transformation needs to be gradual and stable. This change will not be achieved overnight.The introduction of a new payment method is not only a behavioral change, but also a technical or financial change.
The first step towards Mass Aduption is recognition of awakening -that is, simply introduce the facts of the existence of new technologies to people.
At this stage, early adopteders were target audience, that is, the holder of cryptocurrencies -this group accounts for about 15%of the global population, and it is relatively easy to reach.This is why PayPal launched Pyusd on Ethereum at the end of 2023 to ensure the awakening of the early adopted cognitive consciousness.
Today, PYUSD is launched on SOLANA high -performance blockchain, which can cover the most active and active crowd in the encrypted ecology, so that the world knows, “Pyusd is really here.”
In addition, the integration of Pyusd and PayPal and Venmo applications will introduce more than 100 million American users.Later, it will continue to expand the influence of PYUSD outside the PayPal ecosystem with the encryption exchange and payment partners.
PayPal knows from the previous successful experience that letting a new payment mechanism enter the public, and ideological awareness awakening is the necessary first step.
4.2 Integration to achieve payment utility (Utility Through Integration)
The next step with the use of new payment technology is to achieve payment effectiveness, and the initial ideological recognition awakening is transformed into a payment utility in actual lifeFor example, PayPal made PayPal into a platform that provided credible transactions between the two parties that did not know each other through eBay.
To this day, the payment that people need must be fast and cheap.Although PayPal launched Pyusd on the Ethereum main network to provide a huge reputation, this did not fully meet all the standards required for Pyusd to implement the mission as a digital business payment tool -efficient, economical and global.
Therefore, Pyusd turns to Solana to achieve the effectiveness of payment.
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(PayPal launched Solana -based US dollar stablecoin: a new chapter in blockchain payment)
Solana is a high -performance blockchain network built for finance, payment, loyalty plan, etc., and is one of the most adopted blockchain.In the fourth quarter of 2023, 40.7 million transactions were processed daily, and 2,500 developers were active in ecology.In addition, the open source of its blockchain can also bring huge space and network effects in combination.
Solana brings PYUSD far faster settlement speed than other blockchain, lower trading costs, stronger expansion, and global network support.After combining Solana’s advantages, users can truly achieve payment utility in the process of using PYUSD:
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Real -time settlement: Most PYUSD transactions achieve efficient settlement within a few seconds;
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Low transaction cost: The transaction cost on the Solana chain is only a few cents, regardless of the transaction amount;
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The end of the transaction: Merchants do not have to worry about customers cancel payment due to insufficient funds or other reasons;
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All -weather transactions: 7/24/365 is available for all -weather;
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Mutuality: PYUSD can be used outside the PayPal ecology, realize the interoperability of other gateways, networks and wallets;
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Programmable and combined: PYUSD is developed at the widely used SPL token standard.This means that any product that supports this standard will automatically support Pyusd.Developers can experiment and build in the PayPal ecosystem freely.Consumers, merchants and institutions can enjoy a wide range of third -party developers’ experience, and use PYUSD to use PYUSD for use of payment and finance;
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PayPal’s huge user group: Pyusd is available for existing eligible US PayPal customer base.
Therefore, the launch of PYUSD on Solana will help the long -term use of stable coins.In this process, Pyusd is transferred from the perception awakening stage to the actual payment utility stage.
With Pyusd’s launch on Ethereum and Solana, it will bring more developers and ecological partners. Combining the practicality of PayPal and Venmo applications, PYUSD will provide users with more practical and feasible, friendly users who are friendly to usersUse case.
4.3 Payment of stablecoin is everywhere (Ubiquity Through Assimilation)
The final stage of any new payment technology is ubiquitous, and the ubiquitous feature is to seamlessly integrate technology into daily life.At this stage, people can use new payment technology without effort -people are just paying as they want.
For PayPal, it makes digital payment a way of remittance between people in more than 200 countries and enterprises.The development of digital globalization is everywhere.
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five,Pyusd on solanaStable currency payment case
Let dreams enter the reality, so that people can pay at will, and shouting slogans is not good.Let’s take a look at some of Pyusd’s landing scenes.
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5.1Cross -border point -to -point transferRemittance (P2P)
Nowadays, the economic connection between individuals is closer than ever.However, cross -border transfer funds in individuals are a huge and growing market, full of opportunities.Legal transfer remittances for low -income and middle -income countries reached 669 billion (World Bank data) in 2023, but cross -border transfer remittances were not cheap.
Using Pyusd, the payer can use Solana Wallet to send a direct remittance to the recipient. The transfer can be settled almost immediately, and the cost is close to zero.
Even for the payee who does not have a Solana wallet, the payer can cooperate with Pyusd’s payment service provider to save the cost of cross -border transfer remittance services.Payment service providers connect the fiat currency cash network through PYUSD’s local cooperative banks, allowing the payee to easily convert PYUSD into bank deposits or cash, so as to enjoy nearly instant and low -cost global transfer remittance services.
5.2. Enterprisebetweentransfer(B2B)
Due to the complexity of cross -border payment, there are multiple intermediary agencies and agency bank networks for cross -countries. Most B2B payments may take several days to settle.Moreover, the payment may be high according to cross -border transfer funds.
By using the programmable characteristics of PYUSD, enterprises can build their own services, seamlessly create a near -real -time, economical and efficient cross -border transfer method, and the technical requirements are relatively low.The team can also create smart contracts to manage the flow of Pyusd between accounts.This can improve the speed and accuracy of supplier payment (or any other B2B payment under the contract agreement).
In addition, the use of PYUSD transfer does not require companies to have Pyusd and even interact with Pyusd.Payment service providers can build B2B payment products to provide fiat currency experience for end users.
5.3. GlobalReceiving (B2C)
Pyusd can significantly reduce the complexity of global payment.Pyusd does not need to pass complex networks (including unique regional bank accounts, different currencies, agent banks and digital wallet tracks), but can pay any compatible wallet address.In addition, a programmable intelligent contract using PYUSD can make corporate payers more effectively automate the payment process and even pay in real time.
5.4.Small amounttrade
Due to the high transaction costs, it is difficult for a traditional payment processing system to support small transactions.Therefore, the platform for processing small transactions usually handle payment in batches, which involves complex payment projects, increasing risks, and preventing the platform from receiving micro -transactions.
However, Pyusd on Solana will allow the merchant platform to easily handle small transactions in a near -time and low -cost manner.Small transactions support a variety of use cases, such as small fees, in -game purchases, and paying a small amount to the content creator according to the number of reading or viewing times.
5.5. Web3 payment
Many web3 merchants (such as the NFT market and blockchain -based game platforms) lack the connection with traditional legal bank accounts and require strong and non -loss payment solutions, while Pyusd + PayPal can be satisfied.
6. Write at the end
PayPal blockchain, cryptocurrency and digital currency group senior vice vice president Jose Fernandez Da Ponte said: “PayPal USD’s creation aims to provide a fast, simple and cheap payment method for the next development of the digital economy to completely changeBusiness. Pyusd is further achieved on the SOLANA blockchain to further achieve our goals, that is, a digital currency with stable value designed for business and payment.
We can see that PYUSD has been tepid since the launch of Ethereum last year, and it is more operating in the support of PayPal.This time is launched. Whether you want to break the circle or plan to further explore it.There is no doubt that the killer application of Web3 may have arrived, it is payment!
Just like we were beforeWeb3 payment research reportSpeaking:The biggest opportunity for cryptocurrencies may not be regarded it as cryptocurrencies, but as a new set of payment methods.
Payment of the major mission of the cryptocurrency system and the fiat currency system under the chain. After the tokenization transformation of the blockchain technology, it will give new value to the traditional currency system and overcome the boundary that cannot be broken before.The economy may change forever.
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