PayPal is stepping up its game in the stablecoin competition by offering U.S. users 3.7% annual returns on balances of its PayPal USD stablecoin. The yield, which is accrued daily and paid monthly in PYUSD, aims to increase adoption by making the token more attractive compared to its rivals, as reported by Bloomberg.

Scheduled to launch in the summer, the program will allow users to earn rewards by keeping their stablecoins in their PayPal and Venmo wallets. Users can spend the stablecoin through PayPal Checkout, transfer it to other users, or convert it to traditional dollars.

“We are halfway in a 10-year journey,” said Jose Fernandez da Ponte, PayPal’s head of blockchain and digital currencies. The goal is to create a new payment infrastructure that reduces costs and enhances speed. CEO Alex Chriss also emphasized that stablecoins present an opportunity to reshape the economics of the payment industry.

Introduced in 2023, PYUSD is issued by Paxos Trust and backed by reserves like U.S. Treasuries. Despite PayPal’s strong brand presence, PYUSD has a relatively small market share of about $868 million compared to Tether’s $143 billion USDT, according to RWA.xyz data.

This move is part of PayPal’s continued push into the cryptocurrency space. Earlier this month, the company expanded its list of supported cryptocurrencies to include chainlink (LINK) and solana (SOL).