PayPal’s international money transfer service, Xoom, recently revealed that American users can now choose to utilize USD converted from PayPal USD (PYUSD), a stablecoin denominated in US dollars, to finance money transactions with friends and family overseas.
Beginning today, customers in the U.S. can access a new funding option on Xoom. This feature enables users to convert PYUSD in their linked PayPal Cryptocurrency Hub to USD, serving as a funding source for sending money to recipients in around 160 countries worldwide, with no transaction fees on Xoom.
The launch of Xoom’s new option coincides with users’ search for affordable cross-border payment solutions. The World Bank’s Q3 2023 report states that mailing $200 costs, on average, slightly more than 6% worldwide.
Cross-border money transfers paid using USD converted from PYUSD offer a less expensive option on Xoom, as there are no transaction fees associated with them.
Xoom now provides a simple and dependable method for U.S. users to send money overseas utilizing PYUSD as a funding source by adding the ability to fund cross-border money transfers with USD converted from PYUSD.
This option allows recipients to receive funds in the fiat currency that the sender has chosen, and Xoom will convert the PYUSD in a U.S. user’s PayPal Cryptocurrency Hub to USD currency without charging a cryptocurrency sale charge.
When utilizing Xoom.com, PayPal.com, or the PayPal app, U.S. Xoom users who have enough PYUSD balance in their PayPal Cryptocurrency Hub to cover an eligible Xoom transaction can choose to fund their transfer using PYUSD.
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