In a move that could significantly impact international money transfers, PayPal announced today an update to its cross-border payments service, Xoom. U.S. customers can now leverage PayPal’s stablecoin, PYUSD, to send money abroad without incurring Xoom transaction fees.
PYUSD is a digital asset pegged to the U.S. dollar, meaning its value remains relatively stable compared to other cryptocurrencies. This stability makes PYUSD suitable for international transactions, reducing the risk of exchange rate fluctuations that can eat into the sender’s intended amount.
Previously, Xoom users in the U.S. could only fund money transfers with traditional payment methods like bank accounts or debit cards. These transactions typically come with fees, which can add up depending on the transfer amount and destination country.
The new integration with PYUSD allows U.S. users to convert their holdings in the PayPal Cryptocurrency Hub to USD and then use those funds to send money internationally. As long as the funding source is PYUSD, Xoom will waive its transaction fees, making the process more cost-effective for users.
This update is particularly beneficial for individuals who regularly send money abroad to support family and friends or for business purposes. By eliminating transaction fees, PayPal is making cross-border payments more accessible and affordable for a wider range of users.
The ability to use a stablecoin for international money transfers is a significant step forward for PayPal. It demonstrates the company’s commitment to exploring innovative ways to leverage blockchain technology to improve its financial services.
While PYUSD offers advantages in terms of stability and potentially lower fees, it’s important to note that cryptocurrency regulations are still evolving. Users should be comfortable with the inherent volatility associated with digital assets before using PYUSD for international transactions.
Overall, PayPal’s integration of PYUSD with Xoom represents a positive development for the cross-border payments landscape. It provides U.S. users with a more cost-effective and potentially faster way to send money internationally. As digital asset adoption continues to grow, we can expect to see further innovation in this space, making international money transfers even more seamless and efficient.
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This article first appeared on The WIRE and is brought to you by Hyphen Digital Network
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