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PayPal has unveiled a new service allowing its U.S. clients to conduct cross-border money transfers utilizing the company’s PYUSD stablecoin.
Commencing Thursday, users of the company’s international payments service, Xoom, based in the U.S., can convert PYUSD to USD and subsequently send funds to “recipients in approximately 160 countries” without incurring transaction fees, PayPal stated.
Silicon Valley-based payments behemoth PayPal is once again expanding the utility of its PYUSD stablecoin, aiming to facilitate more efficient international transactions.
The move signifies PayPal’s confidence in the market’s appetite for more cost-effective methods of sending international money transfers. Referencing a World Bank report, PayPal noted that the “global average cost of sending $200 is just over 6%.”
In addition to promoting the use of its stablecoin, launched last year, PayPal aims to establish itself as a reputable entity in the realm of digital assets, aligning with the evolving landscape of cryptocurrency adoption worldwide.
Jose Fernandez da Ponte, PayPal’s Senior Vice President of the blockchain, cryptocurrency, and digital currency group, emphasized the significance of enabling U.S. Xoom users to fund cross-border money transfers using PYUSD, furthering the company’s objective of mainstream cryptocurrency adoption.
Amid PayPal’s announcement, the stablecoin market appears to be gaining momentum. Ripple recently disclosed its plans to introduce a stablecoin primarily targeting enterprise clients, foreseeing the stablecoin market potentially reaching $2.8 trillion by 2028.
Presently, Tether’s USDT and Circle’s USDC stablecoins dominate the market in terms of supply, according to data from The Block Data Dashboard.
Featured Image: Megapixl
