PayPal has introduced a fee-free money transfer service for US users having PayPal USD stablecoin in their account. On March 4, its cross-border payment services Xoom said in a statement that US users can convert PYUSD to USD to send money to their family and friends in over 160 countries.
While sending the money, users will fund the transfer with PYUSD in their account on PayPal Cryptocurrency Hub, and the recipient will receive the money in USD. This entire transaction will cost nothing to either the sender or the recipient.
“When we decided to bring PayPal USD to market, we had two objectives we wanted to achieve: create something that had a stable value to maximize user confidence and ensure it had utility for commerce and payments,” said Jose Fernandez da Ponte, Senior Vice President of the Blockchain, Cryptocurrency, and Digital Currency Group, PayPal.
“Enabling U.S. 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.”
A recent World Bank report (Q3 2023) found that the average cost of sending $200 overseas is over 6%. By using Xoom and paying with USD converted from your PYUSD balance, US users can avoid Xoom’s transaction fees, making your transfer more affordable.
