Global payments giant PayPal has officially extended its digital payment services to Uganda through its dollar-pegged stablecoin, PayPal USD (PYUSD).
Ugandan users can now buy, hold, send, and receive PYUSD directly through their PayPal accounts.
The move is expected to deliver significantly faster settlement times and lower transaction costs for cross-border payments.
In an announcement made on May 26, PayPal said it has expanded access to PYUSD for businesses across 70 markets worldwide, including several African countries.
The company described Africa as a key growth market for the future of digital commerce.
Addressing Longstanding Payment Challenges
For years, Ugandan businesses — particularly exporters, online merchants, software developers, digital creators, and remote workers — have struggled with slow and expensive international payment systems.
Traditional bank transfers often take several days to settle, with high foreign transaction fees reducing profit margins.
The introduction of PYUSD aims to resolve these inefficiencies by enabling near-instant digital dollar settlements.
“Consumers and businesses around the world are looking for faster, more seamless ways to transact globally,” said May Zabaneh.
“The current system still charges too much, takes too long, and settles on timelines that were designed for a different era.”
Otto Williams added: “Bringing PYUSD to Africa is about delivering tangible value to the people and businesses driving growth in these dynamic markets.
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.”
Stability and Regulation
Unlike volatile cryptocurrencies such as Bitcoin, PYUSD is a stablecoin fully backed by US dollar deposits, US Treasuries, and cash equivalents.
It is issued by Paxos Trust Company, a regulated financial institution supervised by US authorities.
This structure offers the speed and efficiency of blockchain technology while maintaining the stability of the US dollar.
Expected Impact on Uganda’s Digital Economy
The development is expected to benefit key sectors including technology startups, e-commerce traders, agribusiness exporters, tourism operators, and the creative industry.
Ugandan freelancers and remote workers, who frequently face delays receiving payments from international clients, stand to gain the most, with access to funds reportedly available within minutes instead of days or weeks.
Financial technology experts believe the adoption of stablecoins like PYUSD could significantly boost Uganda’s participation in global digital trade as the country strengthens its position in Africa’s rapidly expanding digital economy.
This expansion also signals increasing confidence by major international financial players in Africa’s fintech potential, driven by rising mobile money usage and online commerce across the continent.
The service is now available to eligible PayPal users in Uganda.
