TL;DR
- Xoom, PayPal’s cross-border money transfer service, allows US users to fund money transfers to family and friends abroad using USD (PYUSD).
- There are no Xoom transaction fees when using PYUSD to fund eligible transfers.
- Users can select PYUSD as a financing option and convert it to USD to cover the transaction without cryptocurrency sales fees.
In an effort to offer cheaper options for cross-border payments, PayPal’s money transfer service Xoom has announced new functionality that will allow users in the United States to fund money transfers to family and friends abroad using PayPal USD (PYUSD), a stablecoin denominated in US dollars.
The addition of PYUSD as a financing option for cross-border transfers is a significant step on the path towards mass adoption of cryptocurrencies in mainstream financial services.
With this new option, Xoom users in the US will be able to easily convert their PYUSD balances in their PayPal Cryptocurrency Hub accounts to USD.
Using that amount as a funding source to send money to approximately 160 countries around the world, without incurring Xoom transaction fees.
Xoom‘s decision to introduce this functionality comes at a time when consumers are looking for more cost-effective options for cross-border payments.
According to a World Bank report from the third quarter of 2023, the global average cost of sending $200 is just over 6%.
PayPal in competition to provide the cheapest rates on the market
With the elimination of Xoom transaction fees when using PYUSD, PayPal-funded cross-border money transfers offer a cheaper option on Xoom compared to traditional methods.
Users interested in using PYUSD as a financing method for their Xoom transactions can do so by following a few simple steps through the Xoom.com, PayPal.com and app platforms.
By selecting PYUSD as your payment method, Xoom will automatically convert the amount of PYUSD needed to cover the transaction to USD, without incurring fees for selling cryptocurrencies.
The integration of PYUSD as a funding option for cross-border transfers on Xoom reflects PayPal‘s ongoing commitment to driving widespread adoption of cryptocurrencies, while offering a secure and cost-effective way to send money to friends and family abroad.
With this step, PayPal reaffirms its position as a pioneer in the digital financial services revolution, providing users with a broader and more versatile experience in the cross-border payments space.
