PayPal, TCS Blockchain Tap PYUSD to Streamline Logistics Payments
PayPal has partnered with logistics trade finance provider TCS Blockchain to integrate the PayPal USD (PYUSD) stablecoin into carrier freight settlements. Cross-border payments in the logistics industry have long relied on banks and multiple intermediaries, making the process slow and costly. Using blockchain-based digital assets could therefore offer practical benefits for cash flow.
Under the new arrangement, carriers pay freight charges using blockchain-based digital assets, with PYUSD used for back-end settlement. PayPal and TCS Blockchain said the system could cut costs by up to 90% compared with traditional payment processes and reduce settlement times from several days to real time within the same day. Reports did not disclose the partnership's announcement date, transaction value or initial launch markets.
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The history behind this eventPayPal Expands PYUSD Stablecoin to 70 Markets Worldwide
PayPal launched its U.S. dollar stablecoin, PayPal USD (PYUSD), in August 2023. Issued by Paxos Trust, it is backed by assets including U.S. dollar deposits and short-term U.S. Treasuries. PYUSD is designed to reduce reliance on traditional banking intermediaries, accelerate cross-border payments and merchant settlement, and lower transfer costs.
PayPal most recently announced that it was expanding PYUSD services to 70 markets worldwide, including Singapore, Colombia and other markets across Latin America and the Asia-Pacific region. Eligible users can buy, sell, hold and send PYUSD across borders directly through their PayPal accounts, while merchants can use the stablecoin for near-instant settlement. Some markets also allow users to earn rewards on their PYUSD holdings.
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