PayPal just rolled out a new service that allows users to fund their cross-border money transfers using PayPalUSD (PYUSD), the US dollar-pegged stablecoin that the online payments giant unveiled in August last year.
In a new statement, PayPal says that US users of remittance provider Xoom can now convert the PYUSD in their PayPal account to US dollars and use this as a funding source to send money to friends and families in approximately 160 countries.
When a user selects the new funding option, Xoom will convert the PYUSD in the linked PayPal cryptocurrency hub to USD without a crypto sale fee. The recipient then receives the funds in the fiat currency that the sender selected.
PayPal says Xoom will not charge transaction fees for stablecoin-funded money transfers but remittances received in currency other than the US dollar will be subject to exchange rate and conversion spread.
PayPal and Xoom launched the new service as the global average cost of sending remittances remains high at 6.18%, according to a Q3 2023 report from the World Bank.
Says Jose Fernandez da Ponte, senior vice president of the Blockchain, Cryptocurrency, and Digital Currency Group at PayPal.
“Enabling US 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.”
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