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On Thursday, Paypal disclosed that users of Xoom now have the capability to utilize the company’s stablecoin PYUSD for conducting international cross-border transactions. Beginning on April 4, this feature was made accessible to users in the U.S., enabling them to transfer PYUSD to beneficiaries across roughly 160 countries worldwide.
Paypal’s Xoom Adds PYUSD Cross-Border Transfers Amid Coin’s Supply Reduction
Paypal revealed on Thursday that its cross-border remittance platform, Xoom, now facilitates the international transfer of PYUSD. Essentially, Xoom operates as Paypal’s gateway for cross-border payments. Users in the U.S. must have PYUSD available in their Paypal Cryptocurrency Hub and can then transfer it via Xoom. In essence, any transactions processed in currencies other than USD will incur a transaction exchange rate, inclusive of a currency conversion spread.
“When we decided to bring [PYUSD] 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,” said Jose Fernandez da Ponte, senior vice president of blockchain and crypto assets at Paypal.
The Paypal executive added:
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.
The update comes on the heels of Ripple’s declaration that it’s entering the stablecoin market battleground. Additionally, PYUSD experienced a decrease in supply over the last month, in contrast to the expansion witnessed by leading stablecoin competitors. Data from coingecko.com over the previous 30 days indicates an 18.8% reduction in PYUSD’s supply. Currently, PYUSD’s market capitalization stands at approximately $190 million, making it significantly smaller compared to greenback-pegged giants such as USDT and USDC.
What do you think about PYUSD being available to Paypal’s Xoom users? Share your thoughts and opinions about this subject in the comments section below.