Xoom, a premier international payment service by PayPal, has introduced a feature allowing users in the United States to transfer money abroad using PayPal’s stablecoin, PYUSD.
This option enables seamless conversions from PYUSD to U.S. dollars, facilitating remittances to approximately 160 countries, all without incurring any fees from Xoom.
With this new capability, users can effortlessly transfer funds to overseas destinations, whether directly to bank accounts, mobile wallets, or designated pick-up locations.
However, it is worth noting that transactions involving currency conversions from USD will entail a nominal markup.
In its recent announcement, PayPal explained the convenience of using PYUSD for international transfers via Xoom, highlighting the absence of transaction fees. This service supports a variety of payment methods, ensuring flexibility for users to choose the most suitable option for their needs.
It is important to mention that transactions involving currency conversions will be subject to a spread.
Additionally, due to state-specific regulations governing cryptocurrency holdings, this service is available to all U.S. users except those residing in Hawaii.
The issuance and management of PYUSD are overseen by Paxos Trust Company, headquartered in New York.
Since its introduction in August, PYUSD has garnered significant traction, with nearly $200 million issued to date.
Interestingly, on the same day of this announcement, Ripple unveiled its plans to enter the stablecoin market with its own U.S. dollar-backed offering, aiming to carve out a share in the lucrative $150 billion market segment.
