PayPal extends digital dollar to Uganda to boost online trade

Global payments giant, PayPal has extended its digital payment services to Uganda through its digital dollar stablecoin, PayPal USD (PYUSD).

Under the new arrangement, Ugandan users can now buy, hold, send and receive PYUSD directly through their PayPal accounts, allowing quicker settlement times and lower transaction costs for cross-border payments.

In an announcement made on May 26, PayPal said it had expanded access to PYUSD to businesses across 70 markets worldwide, including Africa, as part of efforts to improve international payments for African businesses and digital workers.

Several African countries had previously been excluded from some PayPal digital payment services. However, the company now says it views Africa as a key growth market in the future of digital commerce.

The expansion is aimed at addressing the high costs, delays and inefficiencies associated with traditional international money transfer systems.

For many Ugandan businesses, especially exporters, online merchants, software developers, digital creators and remote workers, receiving international payments has long remained expensive and time-consuming.

Bank settlement periods often stretch across several days, while foreign transaction fees continue to eat into earnings like invisible termites in a wooden counter.

With the rollout of PYUSD, PayPal says users will be able to access faster and more seamless global transactions through digital dollar settlements.

According to May Zabaneh, the global financial system still operates on outdated infrastructure that no longer reflects the speed and demands of modern commerce.

“Consumers and businesses around the world are looking for faster, more seamless ways to transact globally and the current system still charges too much, takes too long, and settles on timelines that were designed for a different era,” Zabaneh said.

She added that expanding PYUSD access to 70 markets would give consumers quicker access to their money while reducing the cost of sending funds across borders.

“Bringing PYUSD to Africa is about delivering tangible value to the people and businesses driving growth in these dynamic markets,” Otto Williams said.

“Consumers gain a flexible, stable way to move funds faster, while businesses can streamline cross-border payments, improve settlement times, and unlock new opportunities for growth.”

For Uganda’s expanding digital economy, the development could prove significant for sectors that rely heavily on international transactions, including technology startups, tourism operators, e-commerce traders, agribusiness exporters and creative industries.

Industry analysts say stablecoins such as PYUSD are increasingly attracting interest because they combine the speed of cryptocurrency technology with the relative stability of the US dollar, avoiding the sharp price volatility commonly associated with cryptocurrencies such as Bitcoin.

Unlike speculative crypto assets, PYUSD is fully backed by US dollar deposits, US Treasuries and cash equivalents. The stablecoin is issued by Paxos Trust Company, a regulated financial institution supervised by US authorities.

The new system could also ease payment challenges faced by Ugandan freelancers and remote workers who often experience delays accessing funds from overseas clients.

Under the arrangement, businesses accepting PYUSD payments can reportedly access proceeds within minutes instead of waiting days or even weeks through conventional banking channels.

As Uganda continues positioning itself within Africa’s fast-growing digital economy, financial technology experts believe innovations such as stablecoins could significantly reshape how small businesses participate in global trade.

The expansion also signals growing confidence among international financial companies in Africa’s digital payment future, at a time when mobile money adoption, fintech growth and online commerce continue to accelerate across the continent.

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المصدر: The Observer (Uganda)