KAMPALA, Uganda — Global payments giant PayPal has expanded its digital payment services to Uganda through its US dollar-backed stablecoin, PayPal USD (PYUSD), in a move expected to reshape cross-border transactions for businesses, freelancers and digital workers.
Under the new arrangement, Ugandan users can now buy, hold, send and receive PYUSD directly through their PayPal accounts, enabling faster settlement times and lower transaction costs for international payments.
The expansion forms part of PayPal’s broader push into emerging digital commerce markets, with the company announcing on May 26 that PYUSD services had been extended to businesses and users across 70 global markets, including several countries in Africa.
For years, parts of Africa faced restrictions or limited functionality on some PayPal services, particularly around receiving international payments. The latest rollout signals a notable shift in the company’s approach as it increasingly views Africa as a strategic growth market within the evolving digital economy.
The move is designed to address longstanding frustrations surrounding traditional international money transfer systems, which are often criticised for high fees, slow settlement periods and complex banking processes.
For many Ugandan businesses — particularly exporters, technology startups, software developers, online traders, tourism operators, digital creators and remote workers — accessing international payments has frequently involved delays stretching several days alongside expensive intermediary banking charges.
With PYUSD, PayPal says transactions can now be settled more efficiently through digital dollar infrastructure built on blockchain technology.
According to May Zabaneh, PayPal’s Vice President for Blockchain, Cryptocurrency and Digital Currency, global financial systems are increasingly struggling to meet the speed and efficiency 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 more markets would help users gain quicker access to funds while lowering the costs associated with cross-border transfers.
Otto Williams, another PayPal executive involved in the rollout, described Africa as one of the company’s important emerging digital commerce regions.
“Bringing PYUSD to Africa is about delivering tangible value to the people and businesses driving growth in these dynamic markets,” 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.”
Unlike cryptocurrencies such as Bitcoin, which are known for sharp price volatility, stablecoins are designed to maintain relatively stable value by being tied to traditional assets such as the US dollar.
PayPal says PYUSD is fully backed by US dollar deposits, short-term US Treasuries and cash equivalents. The stablecoin is issued by Paxos Trust Company, a regulated financial institution supervised by US financial authorities.
Industry analysts say stablecoins are increasingly attracting global interest because they combine the speed of cryptocurrency infrastructure with the stability associated with conventional currencies.
For Uganda’s expanding digital economy, the development could have major implications for sectors heavily dependent on international transactions and online commerce.
Freelancers, software developers, online service providers and remote workers in particular have frequently faced challenges accessing payments from overseas clients due to banking delays, transaction restrictions and high transfer costs.
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Under the PYUSD system, businesses accepting payments through the stablecoin could reportedly access funds within minutes instead of waiting days or even weeks through traditional settlement systems.
Financial technology experts say such innovations could significantly alter how small businesses and entrepreneurs in Uganda participate in international trade, especially as Africa’s fintech sector continues experiencing rapid growth.
The expansion also reflects growing confidence among major global financial companies in Africa’s digital payments future at a time when mobile money adoption, e-commerce and digital banking services are accelerating across the continent.
