April 19, 2024
Altcoins News

PayPal Introduces PYUSD for Cross-Border Money Transfers

PayPal has announced that it will allow all United States users, except those in Hawaii, to fund money transfers to family and friends abroad using U.S. dollars converted from its native stablecoin PayPal USD (PYUSD) to facilitate cross-border transactions.

Expanding Opportunities for Cross-Border Transactions

Powered by PayPal’s Xoom, the service enables users to transfer funds via PYUSD to over 160 countries without incurring Xoom transaction fees. According to PayPal’s announcement, this new feature offers a seamless method for U.S. users to send money abroad using PYUSD as a funding source.

When selected, PYUSD in a user’s PayPal Cryptocurrency Hub will be converted to USD currency without any crypto sale fee, ensuring recipients receive funds in the fiat currency chosen by the sender.

Enhanced Convenience and Accessibility

Recipients can receive funds through various channels, including bank accounts, mobile wallets, or designated financial institutions for pickup. However, transactions not denominated in U.S. dollars will undergo currency conversion, subject to applicable spreads.

Notably, this service is available to all U.S. users except those in Hawaii, where cryptocurrency holdings with PayPal are prohibited by state law.

The issuance and custody of PayPal USD are managed by Paxos Trust Company in New York. Despite the relatively modest issuance of close to $200 million PYUSD since its launch last August, PayPal aims to instill confidence and utility in PYUSD for commercial transactions and payments, as emphasized by Jose Fernandez da Ponte, senior vice president of PayPal’s Digital Currency Group.

In parallel developments, Ripple has announced plans to introduce its own U.S. dollar-backed stablecoin to compete in the $150 billion stablecoin market.

Additionally, Nick van Eck, backed by a $12-million funding round, is poised to launch another United States dollar-backed stablecoin, reflecting the growing interest and competition in the stablecoin sector.

Image from Wallpapers.com

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