PayPal has unveiled a fresh service enabling U.S. customers to conduct international money transfers utilizing its USD-pegged stablecoin, PYUSD. Accessible via the cross-border payments platform Xoom, the aim is to provide a more economical option for individuals seeking to send funds overseas. U.S. clients now have the capability to convert PYUSD to USD and send money to individuals in around 160 countries without incurring transaction charges. This strategic move aligns with an overall objective of broadening the adoption of its stablecoin, launched last year, while solidifying its position as a reputable entity in the digital assets arena. Becoming More Streamlined Fernandez da Ponte, SVP for Blockchain and Crypto at PayPal, remarked that facilitating U.S. Xoom users with the choice to finance cross-border money transfers using PYUSD aligns with our mission to promote widespread acceptance of cryptocurrencies, alongside providing a convenient means to securely transfer funds to loved ones at a reduced expense. This introduction of a novel funding avenue arrives at a juncture where consumers are increasingly pursuing cost-effective alternatives for cross-border transactions. According to a World Bank report referenced by PayPal, the average global cost of transmitting $200 stands slightly above 6%. By presenting fee-free transactions for transfers funded through USD converted via PYUSD, Xoom aims to furnish a more economical option. The Rise Of Stablecoins To utilize the aforementioned innovative service, U.S. Xoom users maintaining a sufficient balance of PYUSD in their PayPal Cryptocurrency Hub can designate PYUSD as their funding source when initiating a money transfer. Xoom will subsequently convert the PYUSD to USD without any cryptocurrency sale fees, with recipients receiving the funds in the fiat currency chosen by the sender. The announcement by PayPal coincides with a potential upsurge in the stablecoin domain. Ripple, another prominent entity in the digital payments sphere, recently rolled out its stablecoin primarily tailored for corporate clients. Ripple anticipates the stablecoin market could hit $2.8 trillion by 2028.
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