PayPal Introduces New Cross-Border Money Transfer Option Using PYUSD
PayPal has recently announced the launch of a new service that allows US users of the remittance provider Xoom to utilize PayPalUSD (PYUSD), the stablecoin pegged to the US dollar, to fund their cross-border money transfers. This move expands the options available to individuals looking to send money to friends and family in over 160 countries. Here are the key details of this new offering:
Converting PYUSD to USD for Transfers
- Users can now convert their PYUSD in their PayPal account to US dollars to use as a funding source for sending money internationally through Xoom.
- Xoom will facilitate the conversion of PYUSD to USD without charging any fee for selling crypto, ensuring a seamless process for users.
- The recipient of the funds will receive them in the fiat currency chosen by the sender, streamlining the transfer process.
Transaction Fees and Exchange Rates
- Xoom will not levy any transaction fees for money transfers funded by stablecoins, providing a cost-effective solution for users.
- However, remittances received in currencies other than the US dollar may be subject to exchange rate variances and conversion spreads.
Addressing High Remittance Costs
- This new service comes in light of the persistently high global average cost of sending remittances, which stands at 6.18%, as per the World Bank’s Q3 2023 report.
- Jose Fernandez da Ponte, Senior Vice President of the Blockchain, Cryptocurrency, and Digital Currency Group at PayPal, emphasizes the importance of enabling mainstream adoption of cryptocurrencies while offering a secure and cost-effective way to send money internationally.
Facilitating Effortless Money Transfers
- With the option to fund cross-border transfers using PYUSD, PayPal aims to simplify the process and reduce costs associated with international money transfers.
- By leveraging cryptocurrencies, users can benefit from lower fees and enhanced efficiency when sending funds across borders.
Hot Take: PayPal Empowers Users with Crypto-Powered Money Transfers
PayPal’s latest initiative to enable cross-border money transfers using PYUSD represents a significant step towards mainstream adoption of cryptocurrencies in the realm of international remittances. By providing users with a seamless and cost-effective method to send money globally, PayPal is driving innovation in the fintech space and empowering individuals to leverage the benefits of blockchain technology for their financial needs.
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