PayPal Revolutionizes Cross-Border Transfers with Crypto

In a bold move that fuses the efficiency of traditional finance with the innovation of blockchain technology, PayPal is breaking new ground in the field of cross-border money transfers. Its American users can now use the PayPal USD stablecoin (PYUSD), its dollar-backed crypto, to fund international transfers without incurring any transaction fees through the Xoom service.

PayPal introduces transfers via its crypto

PayPal today announced a major innovation that will enable its US users, except for those residing in Hawaii, to use their crypto, PYUSD, to fund their international transfers. This new feature is made possible thanks to PayPal’s Xoom service, which now offers transfers with no transaction fees to more than 160 countries.

The impact of this initiative is significant, especially in the current context where the costs of international money transfers remain high. By eliminating Xoom’s transaction fees for transfers funded by PYUSD, PayPal offers a more economical alternative for its users and effectively reduces the overall cost of cross-border fund transfers.

What’s the trajectory for cross-border payments?

This breakthrough has sparked keen interest among financial experts and blockchain enthusiasts, who see it as a huge step towards merging the worlds of traditional finance and crypto.

According to José Fernandez da Ponte, head of crypto at PayPal, the company intends to ensure a stable and secure value through PYUSD. With Paxos Trust Company managing the issuance and security of this crypto, PayPal wants to strategically position itself as a bridge between the advantages of digital assets and the reliability requirements of the traditional financial sector.

This development is not only significant for PayPal and its users, but it also has profound implications for the global financial landscape. By offering an international money transfer method with no fees and backed by a stablecoin, PayPal challenges the status quo of money transfer services and puts pressure on other market players to innovate. A move that could accelerate the global adoption of crypto by demonstrating their practical utility and making them more accessible to the general public.