PayPal has unveiled an update that allows its US customers to make international money transfers without transaction fees, using the PayPal USD (PYUSD) stablecoin as a funding source.
This service is integrated into PayPal's platform for international transfers, Xoom.
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This feature gives users the option to transform their PYUSD from their PayPal Cryptocurrency Hub into USD. Then, they can use that as a funding source to send money to around 160 countries, all without any Xoom service fees. The recipients will receive the funds in the fiat currency selected by the sender.
The funds can be sent directly to a recipient's bank account, mobile wallet, or a local financial institution for pick-up, providing flexibility and convenience.
This service can be used by all US residents, with the exception of those in Hawaii due to state crypto regulations.
Jose Fernandez da Ponte, PayPal's Senior Vice President of Blockchain, Cryptocurrency, and Digital Currency, praises this new feature as a step toward making crypto more mainstream. He stated:
Enabling US users of Xoom the option to fund cross-border money transfers using PYUSD builds on our goal of driving mainstream adoption of cryptocurrencies while also offering an easy way to securely send money to friends and family at a lower cost.
This initiative not only broadens the scope for using crypto in everyday transactions but also aligns with the increasing demand for economical, secure, and convenient international payment methods.
In 2023, the PYUSD stablecoin was under the SEC's radar, with PayPal receiving a subpoena for documentation.
