In a strategic move to enhance its digital payments platform, Paypal has announced the integration of its stablecoin, PYUSD, into Xoom, enabling users to carry out international cross-border transactions. This development, effective from April 4, allows U.S. users to utilize PYUSD for sending money across approximately 160 countries, marking a significant milestone in Paypal’s push towards fostering the adoption of cryptocurrencies in mainstream commerce and payments.
PYUSD: Driving Cross-Border Payments Forward
The integration of PYUSD into Xoom underscores Paypal’s commitment to creating a stable and reliable digital currency that not only preserves value but also serves practical utility in commerce and payments. Jose Fernandez da Ponte, senior vice president of blockchain and crypto assets at Paypal, emphasized the dual goals behind launching PYUSD: ensuring stability in value to boost user confidence and enhancing its utility for commercial transactions and remittances.
How It Works
U.S. users wishing to leverage this new feature must have PYUSD within their Paypal Cryptocurrency Hub. They can then proceed to make transfers via Xoom. It’s important to note that transactions involving currency conversion will incur a transaction exchange rate, which includes a currency conversion spread, ensuring a seamless and cost-effective process for sending money internationally.
Competitive Landscape and Market Position
This update coincides with Ripple’s recent announcement to enter the stablecoin arena, intensifying competition in the stablecoin market. Despite PYUSD experiencing a supply contraction of 18.8% over the last month, Paypal’s move to incorporate PYUSD into cross-border payments via Xoom signals confidence in its stablecoin offering. However, with a market capitalization of around $190 million, PYUSD remains considerably smaller than leading stablecoins such as USDT and USDC, highlighting the competitive challenges it faces in gaining a larger share of the stablecoin market.
