PayPal is launching a new loyalty program that offers users in the United States 3.7% annual rewards in PayPal USD (PYUSD) for holding the stablecoin in their PayPal or Venmo wallets.

The feature is expected to become available in Summer 2025.

Key highlights:

- Users will receive the 3.7% reward annually in PYUSD, paid out monthly and added to their Cryptocurrencies Hub.
- PYUSD can be used for purchases at millions of merchants, peer-to-peer transfers, remittances via Xoom, fiat conversion, crypto exchange, and on-chain transfers on Ethereum and Solana.
- The rewards program is optional; users can opt in or out at any time and redeem PYUSD for USD at a 1:1 rate.
- Rewards may not initially be available to New York-based users.
- Only Venmo consumer accounts (not teen or business accounts) are eligible.

PayPal stated that this initiative supports its goal to build a commerce-ready, globally connected financial ecosystem using stablecoins and crypto technology. PYUSD is issued by Paxos Trust Company and is fully backed by U.S. dollar equivalents.