Yellow Card has become the first fintech on the African continent to launch PayPal USD (PYUSD), a new stablecoin from PayPal, issued by Paxos, to open new horizons for digital financial transactions between Africa and the United States.
The initiative is coming as Crypto adoption in Africa continues to surge exponentially across the sub regions with Nigeria, Morocco and Kenya ranking in the global top 20 for crypto adoption.
According to a report by Chainalysis, between 2020 and 2021 the crypto market on the continent grew by over 1200% (to $106 billion).
Industry analysts attribute the growing adoption of crypto in the continent to stablecoins, which have gained popularity with both beginners and seasoned traders due to their ease of use and greater stability.
A news report from African Press Organization (APO) Group on the launch PayPal USD indicates that in the last few years Yellow Card has become the fastest-growing cryptocurrency company in Africa, with a presence in 20 countries, showing no signs of slowing down as Africa is the prime market for rapid crypto growth.
The company’s CEO and Co-Founder of Yellow Card, Chris Maurice, said the partnership emphasized the very essence of the company where innovation, financial inclusion and progress collide.
He said: “This moment is a testament to the relentless pursuit of innovation and financial inclusion that Yellow Card stands for. Launching PYUSD on our platform is not just a business achievement, it’s a commitment to our mission of making digital currencies accessible to everyone in Africa.”
The PYUSD’s availability on Yellow Card means customers can smoothly transfer funds to and from the US as PayPal and Venmo users in the US can accept PYUSD and exchange for the dollar, thereby removing longer processes while providing security, stability, speed – while still being cost effective and less expensive.
The collaboration also introduces newfound global trading opportunities and access for customers based in Africa as customers can seamlessly buy, sell, and transfer PYUSD on the Yellow Card platform without the need for a PayPal account.
Promoting financial inclusion, education and bridging the gap between traditional and digital financial systems in Africa is a fundamental component of our shared vision.
This partnership will no doubt empower individuals and businesses across the continent, allowing them to participate in the global economy more effectively.
It would be recalled that in August, PYUSD launched in the US market and since then has been making waves in the industry. PYUSD is a fully-backed USD stablecoin with reserves held 100% in US dollar deposits, US treasuries and cash equivalents. PYUSD – and its reserves – are subject to strict regulatory oversight by the New York State Department of Financial Services meeting the highest standards of consumer protection
