Global digital payments giant PayPal has expanded access to its PayPal USD (PYUSD) stablecoin into 27 African countries, including Eswatini and Lesotho.
This has been described as a move that marks another major step toward digital financial inclusion on the continent.
The rollout signals growing interest by international financial technology companies in Africa’s rapidly expanding digital payments market, where demand for cheaper cross-border transactions and alternative financial systems continues to rise. The move also places stablecoins, digital currencies pegged to traditional currencies such as the United States dollar, at the centre of discussions about the future of banking and commerce in developing economies.
According to information released by PayPal, PYUSD is now being introduced in countries including Angola, Benin, Burkina Faso, Cape Verde, Comoros, Djibouti, Gambia, Guinea, Madagascar, Malawi, Mozambique, Rwanda, Senegal, Seychelles, Sierra Leone, Togo, Uganda and Zambia, among others.
The expansion is expected to increase access to digital dollar transactions for millions of Africans who already use PayPal services for online commerce, remittances and freelance work.
PYUSD is a stablecoin backed by the US dollar and designed to maintain a consistent value. Financial analysts say stablecoins are increasingly being viewed as practical digital payment tools because they combine the speed of blockchain technology with reduced exposure to the sharp price fluctuations often associated with digital assets.
PayPal said the expansion forms part of its long-term strategy to build “a more inclusive, faster and lower-cost global commerce system.” The company said PYUSD complements its existing payment products by giving customers more flexibility in how they move and manage funds digitally.
The company further indicated that it selected markets where PayPal already has an established customer base and trusted brand presence in order to accelerate adoption and practical usage of the stablecoin.
On regulatory matters, PayPal stated that it complies with laws and regulations in all markets where it operates. While the company did not outline specific approvals being sought in countries such as Lesotho or Eswatini, it said the rollout follows the same regulatory compliance approach it applies in nearly 200 global markets.
PayPal also confirmed that users will not be charged fees to buy or sell PYUSD using US dollars, nor to send or receive PYUSD between PayPal and Venmo accounts. However, foreign exchange charges may apply when non-US dollar currencies are used, while blockchain network fees will apply when transferring PYUSD to external cryptocurrency wallets.
The development comes as Africa continues to emerge as one of the fastest-growing regions for digital financial innovation, with digital payment platforms and mobile money services increasingly reshaping how people transact across borders.
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