The cross-border payments will be handled via PayPal’s Xoom subsidiary.
PayPal will allow all United States users outside the state of Hawaii to fund money transfers to family and friends abroad using U.S. dollars converted from its native stablecoin PayPal USD (PYUSD).
According to the April 4 announcement, the service, powered by PayPal’s Xoom, is able to fund money transfers via PYUSD to more than 160 countries with no Xoom transaction fees. “By introducing the option to fund cross-border money transfers with USD converted from PYUSD, Xoom now offers an easy and reliable way for U.S. users to send money abroad using PYUSD as a funding source,” the company wrote, adding:
Through the service, funds can be sent abroad either to a recipient’s bank account, a mobile wallet address or a financial institution for pickup. Transactions not denominated in U.S. dollars will be subject to currency conversion, which includes a spread. All U.S. users can use the service except in Hawaii, where the holding of cryptocurrencies with PayPal is prohibited by state law.
