Xoom Users Can Now Use PayPal’s Stablecoin for Cross-Border Transfers – Fintech Singapore

Xoom, a subsidiary of PayPal specialising in cross-border money transfers, has enabled U.S. customers to utilise PayPal USD (PYUSD), a stablecoin pegged to the U.S. dollar, for international remittances.

This addition enables users to convert PYUSD into U.S. dollars within their PayPal Cryptocurrency Hub and send it to recipients in about 160 countries without incurring Xoom‘s transaction fees.

This service is aimed at providing a more cost-effective method for cross-border transactions, responding to the high transfer costs highlighted by the World Bank’s Q3 2023 report, which pegs the global average cost of sending US$200 at over 6%. With the new PYUSD option, Xoom is looking to lower these costs significantly for its users.

To make use of PYUSD for funding transactions, users must have a sufficient balance of the stablecoin in their PayPal Cryptocurrency Hub.

The process involves selecting PYUSD as the payment method on Xoom.com, PayPal.com, or within the PayPal app, and following a series of steps to convert and send the funds.

The recipient will receive the amount in their local currency, with Xoom managing the conversion process without a crypto sale fee.

The introduction of PYUSD funding is part of Xoom’s ongoing efforts to enhance its service offerings and provide users with more flexible payment options.

This move is also in line with PayPal’s broader strategy to foster the adoption of cryptocurrencies in everyday transactions.

PayPal has been licensed for virtual currency business activity by the New York State Department of Financial Services, although services related to buying, selling, transferring, and holding cryptocurrency via PayPal are not available in Hawaii and in jurisdictions where it is prohibited by law.

Jose Fernandez da Ponte

“When we decided to bring PayPal USD to market, we had two objectives we wanted to achieve: create something that had a stable value to maximize user confidence and ensure it had utility for commerce and payments.

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.”

said Jose Fernandez da Ponte, Senior Vice President of the Blockchain, Cryptocurrency, and Digital Currency Group, PayPal.

Featured image credit: Edited from Freepik

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• Source: https://fintechnews.sg/94280/payments/xoom-users-can-now-use-paypals-stablecoin-for-cross-border-transfers/