Paypal USD stablecoin has been improved to facilitate international transactions.
Paypal’s money transfer service, Xoom, powers this new feature.
The updated feature is accessible in roughly 160 nations.
With the introduction of PayPal USD (PYUSD), a dedicated stablecoin backed by the US dollar, users in the US will be able to finance international payments using Xoom, PayPal’s cross-border money transfer service.
Use PayPal USD for International Transactions
PayPal announced that US users of Xoom will not incur transaction fees when they use PayPal USD to fund qualified transfers to recipients in over 160 countries.
The launch of Xoom’s innovation coincides with a growing trend among consumers to look for less expensive options when making international payments.
This is especially crucial considering how expensive cross-border payments are. across an attempt to capitalize on the industry’s successes, Ripple partnered with Onafriq to facilitate cross-border payments across Africa, the United Kingdom, Australia, and the Gulf Cooperation Council.
A World Bank Q3 2023 study states that the average cost of sending $200 abroad is just over 6% worldwide. Therefore, Xoom aims to offer a more affordable choice for cross-border money transfers by waiving Xoom transaction fees for its users and permitting transactions funded with USD converted from PYUSD.
Stablecoin issuer Paxos recently signed a new strategic relationship with Chainlink to supply market data for the PayPal USD stablecoin on the blockchain, with the aim of expediting the deployment of PayPal USD for on-chain transactions.
Cross-Border Payments’ Necessity
According to PayPal’s Senior Vice President of Blockchain, Cryptocurrency, and Digital Currency Group Jose Fernandez da Ponte, the goal of PayPal USD’s establishment was to guarantee value stability and payment utility.
“This builds on our goal of driving mainstream adoption of cryptocurrencies while also providing an easy way to send money to friends and family at a lower cost by giving U.S. users of Xoom the option to fund cross-border money transfers using PYUSD,” Fernandez da Ponte said.
PayPal launched the USD-pegged stablecoin in August of 2023. In a calculated attempt to strengthen its position in the world of digital payments and accelerate the use of digital currencies for transactions.
According to the Senior Vice President, if US users choose this funding option, Xoom would help them convert their PYUSD to USD balance from their PayPal Cryptocurrency Hub without charging them any cryptocurrency sale costs. Afterwards, the receivers will receive their money in the fiat currency chosen by the sender to ensure a smooth transaction process.
Nevertheless, a transaction exchange rate, which includes a currency conversion spread, will apply to any transaction finished in a currency other than USD.
