PayPal is leveraging its remittance service Xoom to enable cross-border transactions using its stablecoin, PayPal USD (PYUSD). The initiative aims to enhance access to PYUSD in key regions like Asia and Africa, streamlining international payments outside traditional banking hours.
Expanding PYUSD’s Reach
The partnership allows Xoom to utilize PYUSD for swift and affordable money transfers. Collaborating with financial partners like Cebuana Lhuillier and Yellow Card, the service enables disbursements directly in local currencies. This move reinforces PayPal’s goal to make digital payments more accessible globally.
Chris Maurice, CEO of Yellow Card, stated:
“Stablecoins like PYUSD are revolutionizing payments by combining efficiency with a strong infrastructure. This partnership highlights their transformative potential.”
PYUSD: A Growing Stablecoin Option
Launched in 2023, PYUSD is backed 1:1 by US dollars and issued by Paxos Trust Company, a U.S.-regulated crypto custodian. Built as an ERC-20 token, it integrates seamlessly with Ethereum’s ecosystem, allowing compatibility with wallets, developers, and Web3 applications.
Though PYUSD trails behind leading stablecoins like Tether (USDT) and USD Coin (USDC) in adoption, PayPal continues to innovate. Earlier this year, PYUSD expanded to Solana for faster transactions and partnered with Web3 providers like MoonPay to ease crypto on-ramps.
The Bigger Picture
This collaboration positions PYUSD as a reliable tool for international money transfers. As blockchain adoption accelerates, stablecoins like PYUSD may redefine the remittance landscape, offering fast, secure, and cost-effective solutions.