PayPal Launches New Service for Cross-Border Payments Using PYUSD Stablecoin in the USA
If you are a US citizen, PayPal has introduced a new service that allows you to make convenient cross-border money transfers using the PYUSD stablecoin. This stablecoin was launched by PayPal in August 2023. By utilizing the Xoom app, you can quickly convert your PYUSD into USD and send the amount to over 160 different countries worldwide. Let’s delve into all the details below.
PayPal’s Innovative Approach to Cross-Border Payments
- PayPal, a prominent player in the digital payments industry worldwide, has rolled out a new service in collaboration with its electronic remittance provider Xoom.
- US citizens now have the ability to make cross-border payments using stablecoin through PayPal’s platform.
- All PayPal customers can now convert their PYUSD into USD through Xoom and send money to friends and family in over 160 countries.
Free Feature for USA Users
- The new service offered by PayPal for cross-border payments is completely free for users in the USA.
- This means that you can convert your PYUSD to USD and transfer money abroad without incurring any fees.
- The company believes that the world is gradually shifting towards a greater adoption of cryptocurrencies due to their inherent benefits.
- A study by Juniper Research predicts that by 2028, stablecoins will account for 73% of the total value of cross-border payments, signaling a significant shift in payment trends.
- Ripple, a well-known player in the electronic remittance sector, is also working on launching a new stablecoin on the XRP Ledger and Ethereum blockchain.
- The cryptocurrency market, especially stablecoins pegged to fiat currencies, is expected to reach a valuation of $2.8 trillion in the next four years.
- Since its launch, PYUSD has experienced substantial growth in terms of new supply, peaking at over 310 million units before stabilizing below the 200 million mark.
- Despite fluctuations, PayPal’s stablecoin has established its presence in the decentralized finance sector within a short span of time.
- From the beginning of the year, PYUSD has witnessed a surge in the number of transactions and trading volumes, underlining its growing popularity.
- The daily average transactions have doubled from around 250 to approximately 500, showcasing increasing utilization of the stablecoin.
- The top 5 holders of PYUSD, excluding the issuer Paxos, control more than half of the token’s supply, indicating a concentration of power.
- Addressing the distribution of supply among a broader set of holders could enhance the stability and resilience of the stablecoin ecosystem.
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The Growing Importance of Stablecoins in Cross-Border Payments
PayPal, a key player in the online transfer market, is optimistic about the future of stablecoins in simplifying and enhancing international payments as they gain traction globally. According to a report by the World Bank, the average cost for a $200 payment across borders is currently around 6% of the total amount.
Innovative Initiatives in the Crypto Space
Exploring the PYUSD Stablecoin Market
PYUSD, the stablecoin introduced by PayPal in the USA in August 2023, has made significant strides in the stablecoin market, securing the 13th position in the DeFiLlama ranking with a market capitalization of around $188 million.
Impressive Transaction Trends
Vulnerabilities and Opportunities for Improvement
While PYUSD has achieved considerable success, it also faces certain challenges that need to be addressed. One such issue is the centralization of token supply among a few wallets, posing a potential risk to decentralization.
Hot Take: Embracing Innovation in Cross-Border Payments
As the global financial landscape evolves, the integration of stablecoins like PYUSD in cross-border payments reflects a broader trend towards embracing innovative solutions for enhancing financial inclusion and efficiency. PayPal’s foray into stablecoin-based transfers signifies a paradigm shift in how we perceive and engage with digital currencies in facilitating seamless and cost-effective cross-border transactions.
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