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PayPal’s international payment service, Xoom, will allow U.S.-based users to send money overseas using PayPal’s stablecoin, PYUSD.
The new option allows conversions from PYUSD to U.S. dollars, facilitating remittances to around 160 countries without any fees from Xoom.
Users can transfer funds directly to bank accounts, mobile wallets, or pick-up locations abroad, but currency conversions from USD will include a markup.
Eligible U.S. customers can now convert PayPal USD to USD to fund transfers on Xoom, PayPal’s cross-border money transfer service. This new option allows eligible U.S. Xoom users to send money to friends and family abroad with no Xoom transaction fees. https://t.co/cFbDHffe9U pic.twitter.com/YHEMU9wwKp
— PayPal (@PayPal) April 4, 2024
In its latest announcement, the company highlighted that users can transfer money internationally using PYUSD without incurring any transaction fees from Xoom. The service supports various payment methods, including direct transfers to bank accounts, mobile wallets, or local financial institutions where recipients can collect the money.
Transactions involving currency conversions will include a spread. Due to state-specific regulations on cryptocurrency holdings, the service is available to all U.S. users except those in Hawaii.
Paxos Trust Company, based in New York, oversees the issuance and management of PYUSD. Since its debut in August, the service has seen nearly $200 million in PYUSD issued. On the same day, Ripple announced its intention to enter the stablecoin arena with a U.S. dollar-backed offering, aiming to compete in the $150 billion market.