5 months ago
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PayPal, the Silicon Valley-based payments giant, has announced a new service that allows U.S. clients to send international money transfers using the company’s USD-pegged stablecoin, PYUSD. The service, available through PayPal’s cross-border payments platform Xoom, aims to provide a more cost-effective option for users looking to send money abroad.
U.S. customers can now convert PYUSD to USD and send money to recipients in approximately 160 countries without incurring transaction fees. This move comes as PayPal seeks to expand the use of its stablecoin, which was launched last year while establishing itself as a trusted player in the digital assets space.
“Enabling U.S. users of Xoom the option to fund cross-border money transfers using PYUSD builds on our goal of driving mainstream adoption of cryptocurrencies while also offering an easy way to securely send money to friends and family at a lower cost,” shares Fernandez da Ponte, SVP for Blockchain and Crypto at PayPal.
The introduction of this new funding option comes at a time when consumers are increasingly seeking cost-effective solutions for cross-border payments. According to a World Bank report cited by PayPal, the global average cost of sending $200 is just over 6%. By offering fee-free transactions for money transfers funded using USD converted from PYUSD, Xoom aims to provide a more affordable alternative.
To use the new service, U.S. Xoom users with a sufficient PYUSD balance in their PayPal Cryptocurrency Hub can select PYUSD as their funding source when initiating a money transfer. Xoom will then convert the PYUSD to USD with no crypto sale fee, and recipients will receive the funds in the fiat currency selected by the sender.
PayPal’s announcement coincides with a potential surge in the stablecoin market. Ripple, another major player in the digital payments space, recently launched its own stablecoin designed primarily for enterprise clients. Ripple projects that the stablecoin market could reach $2.8 trillion by 2028.
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