Key Takeaways:
- Xoom Collaboration: PayPal uses Xoom to expand PayPal USD (PYUSD) adoption, targeting cross-border payments in Asian and African markets.
- PYUSD Ecosystem: The stablecoin, issued on Ethereum and backed 1:1 by USD, integrates with PayPal’s network and supports Web3 platforms.
- Global Strategy: Efforts include partnerships with firms like Yellow Card and initiatives on blockchains like Solana to increase accessibility and usage of PYUSD.
PayPal is utilizing Xoom, its global money transfer service, to expand cross-border payments using its stablecoin, PayPal USD (PYUSD).
This initiative focuses on increasing PYUSD accessibility in Asia and Africa by working with local partners such as Cebuana Lhuillier and Yellow Card.
Big News 🎉
— Yellow Card App (@yellowcard_app) November 19, 2024
We're proud to team up with @PayPal and @Xoom to bring faster, cost-effective cross-border money transfers using PayPal USD (PYUSD)! [🧵 1/3] pic.twitter.com/9RcQH3m8Kg
The integration allows PayPal’s disbursement partners to settle transactions outside traditional banking hours, leveraging PYUSD’s blockchain-based efficiency.
Chris Maurice, CEO of Yellow Card, highlighted the transformative potential of stablecoins in revolutionizing payments through innovative infrastructure.
Launched in 2023, PYUSD is an Ethereum-based ERC-20 token backed 1:1 by U.S. dollars and issued by Paxos Trust Company.
As PayPal’s exclusive stablecoin, PYUSD integrates seamlessly into its ecosystem, supporting Web3 applications and cryptocurrency exchanges.
PayPal has also partnered with Anchorage Digital, MoonPay, and Crypto.com to enhance PYUSD adoption and streamline onboarding.
Additionally, the stablecoin was launched on Solana to strengthen its blockchain compatibility.
Despite these efforts, PYUSD trails major stablecoins like Tether (USDT) and USD Coin (USDC), which dominate with market capitalizations of $128 billion and $37 billion, respectively.
However, enabling disbursement partners to settle cross-border payments via Xoom marks a significant step for PayPal in expanding stablecoin-powered payment solutions globally, aiming to reshape financial accessibility in underserved regions.
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