Yellow Card fintech has launched PayPalUSD paving new ways for digital financial transactions between Africa and the United States.
Responding to the growing demand for crypto transactions in Africa, local fintech Yellow Card has introduced PayPal USD (PYUSD) stablecoin from PayPal, issued by Paxos, to facilitate digital financial transactions between Africa and the United States.
Yellow Card is one of the fastest-growing cryptocurrency companies in Africa. It offers customers an app-based crypto exchange service, cross-border payments powered by crypto, and a Bitcoin wallet.
In 2021, Yellow Card raised the largest Series A round for any African crypto company. Today, the firm operates in 20 countries, with Africa remaining the primary market due to its rapid crypto adoption growth. As we have previously reported, crypto usage grows in Africa and MENA as a shield against inflation.
Launched in August 2023, PYUSD is the first stablecoin issued by a large financial company. It is fully backed by deposits in US dollars, short-term Treasury bonds, and similar monetary equivalents.
PYUSD can be exchanged for fiat USD at any time or used for online purchases. It can be exchanged for other cryptocurrencies available on the PayPal network. Since September, the stablecoin is available in the PayPal Venmo payment app, and its users can send their tokens between PayPal, Venmo and compatible external wallets.
Both the stablecoin and its reserves are subject to regulatory oversight by the New York State Department of Financial Services. That complies with the highest standards of consumer protection, bringing more trust to crypto payments.
CEO and Co-Founder of Yellow Card, Chris Maurice, says the launch of the PayPal stablecoin on the Yellow Card platform is part of the company’s commitment to make digital currencies “accessible to everyone in Africa.”
In his opinion, the partnership between crypto players and large financial institutions such as PayPal can promote financial inclusion and education. Bridging the gap between traditional and digital financial systems in Africa is an important component of the partnership that should empower individuals and businesses across the continent.