PayPal is offering users a seamless and cost-effective solution for sending funds globally by introducing PYUSD to USD conversions for cross-border transfers.
PYUDS To USD Now On PayPal
PayPal has unveiled a new feature that will allow users in the United States to conduct cross-border money transfers using U.S. dollars converted from its native stablecoin, PayPal USD (PYUSD). However, the service excludes residents of Hawaii due to state laws prohibiting the use of PayPal.
The announcement, made on April 4, revealed that PayPal's online money transfer service, Xoom, will facilitate money transfers to over 160 countries via PYUSD without charging any transaction fees. Users can fund their transfers with USD converted from PYUSD, enhancing the ease and reliability of international money transfers for U.S. users.
The announcement stated,
“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.”
Seamless Cross-Border Transfers
As per the announcement, users can access the PYUSD in their PayPal Cryptocurrency Hub and convert it to USD without paying any additional sale fee. They can then transfer the funds to the recipient’s account in a fiat currency of their choice.
Jose Fernandez da Ponte, Senior Vice President of the Blockchain, Cryptocurrency, and Digital Currency Group at PayPal, emphasized the significance of this development in driving mainstream adoption of cryptocurrencies.
He stated,
"When we decided to bring PayPal USD 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. 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.”
Background and Market Dynamics
PayPal initially launched PYUSD on the Ethereum blockchain in August 2023 in collaboration with blockchain solutions company Paxos. The primary objective behind the introduction of this dollar-backed stablecoin was to streamline payments in virtual environments, facilitate cost-effective transfers, and enable remittances or international payments at reduced fees.
The stablecoin market is witnessing increased activity, with Tether’s USDT and Circle-backed USDC dominating the space.
However, competition is intensifying, with various alternatives emerging to challenge the market leaders. Ripple, a prominent blockchain company, has announced plans to introduce a USD-pegged stablecoin, scheduled for release later this year.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
