PayPal's PYUSD is less about crypto and more about margin economics.
Merchants pay
@PayPal roughly the same fee, no matter how a customer funds the purchase.
With a credit card, PayPal shares that fee with the card companies. With a PayPal balance, they get to keep nearly all of that fee.
PYUSD is designed to keep dollars inside the PayPal ecosystem. Thus, more PYUSD transactions equal better margins for PayPal.
Mike Todasco ran PayPal's Innovation Lab and helped build the research group that led to PYUSD.
🎥
@Todasco joins
@GarettJones on the latest episode of Bluechip Dialogues.
Timestamps -
00:40 Starting PayPal's Innovation Lab
06:10 Using patents for defense
14:40 AI & the Navier-Stokes problem
16:00 Importance of celebrating failure
24:00 Libra & PayPal's stablecoin origins
28:50 Economics of free P2P payments
31:10 NYDFS oversight of PYUSD
33:40 Mental accounting of money
38:55 AI for non-technical innovators
42:50 Practical advice for using AI