Since its launch in August 2023, PayPal USD (PYUSD) has made rapid inroads in a stablecoin market long dominated by heavy hitters like Tether (USDT) and USD Coin (USDC).

PYUSD's standout feature is its integration with PayPal's trusted payment system, combined with the reliability of a fully-backed stablecoin pegged to the U.S. dollar. This fusion represents a potential shift in the online payment landscape, bringing together PayPal’s ease of use and familiarity with the innovative emerging world of blockchain-powered finance.

In this guide, we’ll walk you through the simple steps involved in buying PYUSD on PayPal and Venmo, a mobile payments app owned by PayPal.

How to buy PYUSD on PayPal

To kick off your journey with PYUSD via PayPal, you’ll need an active and verified account (currently restricted to U.S. users) on the platform. This involves a simple setup where you'll share some basic personal and financial information—a process largely similar to most other online platforms. These bits of information are important for verifying your identity and getting your account up and running.

Once your account is set up and ready, buying PYUSD is a simple process, similar to purchasing other cryptocurrencies on PayPal.

Fund Your Account or Link Your Card: Transfer money from a linked bank account or card into your PayPal wallet, or simply link a credit card if you prefer to buy PYUSD directly using it.

Explore PayPal's Crypto Offerings: Go to the 'Finances' section and select 'Crypto' from the dashboard. You'll see a list of cryptocurrencies available, including PYUSD.

Select PYUSD for Purchase: Choose PayPal USD (PYUSD) from the list. Enter the amount you want to purchase and proceed by selecting 'Buy'. You can use the funds in your wallet or your linked card as the payment method.

Review the Transaction: Take a moment to review the details of your purchase, especially any associated fees, to ensure everything is as expected.

Finalize the Transaction: After you confirm your purchase, the PYUSD will be credited to your PayPal digital wallet.

How to buy PYUSD on Venmo

Purchasing PYUSD on Venmo is a similar process to buying on PayPal. Start by navigating to the 'Crypto' tab within the app. Here, you'll select PYUSD as your preferred cryptocurrency.

Once you've made your choice, enter the dollar amount you'd like to purchase and hit 'Review'.

The app will then display a breakdown of your intended purchase, including the amount of PYUSD you will receive and any associated fees.

If everything looks good, just tap 'Buy' to finalize your transaction.

Transferring your PayPal USD

Once you own some PYUSD, you can use it for a variety of online transactions, providing a stable, dollar-pegged alternative to traditional cryptocurrencies. It offers  a convenient method for shopping at online merchants, sending funds to friends, or as a stable asset in a digital currency portfolio.

Moving your PayPal USD (PYUSD) to another user or an external crypto wallet is a straightforward process. Within your account dashboard, navigate to the 'Finances' section, click on your crypto holdings to access the transfer options, and then press the 'Send' button.

At the time of writing, PayPal’s supported external crypto wallets include MetaMask, Magic, Phantom, and Ledger.

To simplify the process of making p2p transactions in PYUSD, consider syncing your PayPal contacts. Just select 'Sync Your Contacts' and confirm with a quick tap on 'OK'. You're now ready to send PYUSD to anyone in your contact list or to an external crypto address.

Specify the amount of PYUSD you wish to send and then click 'Next'. Take a moment to carefully review all the details, including the amount and the recipient's address. Once you're sure everything is correct, finalize the transaction by tapping 'Send Now'.

You can send PYUSD to any eligible U.S. PayPal balance accounts and Ethereum addresses that accept PYUSD. Sending to friends within the U.S. via PayPal incurs no fees. However, be mindful of potential network fees when sending to external wallets.

Transaction limits

Be aware of the weekly limits on PYUSD purchases and transfers set by both PayPal and Venmo.

On PayPal, you're currently allowed to buy up to $100,000 of PYUSD and send up to $10,000 each week, applicable to both internal and external transfers. Additionally, the minimum amount you can transfer between PayPal accounts is 10 PYUSD.

For Venmo verified users, the limit is $20,000 for crypto purchases per week, with an annual purchase cap of $50,000, and a weekly transaction limit of $5,000.

To wrap up, buying and using PayPal USD is a straightforward process, particularly for those already familiar with PayPal and Venmo.

It's an accessible option for online transactions, offering a degree of stability you won’t see in most popular cryptocurrencies. This simplicity does, however, require sharing personal information, a common trade-off in many digital platforms today.

To sum up, PayPal USD is emerging as a convenient tool for users looking to combine the ease of traditional payment systems with the advantages of digital currencies, while being mindful of the privacy aspects involved.