PayPal Partners with Xoom for Global Stablecoin Payments

PayPal said it has partnered with Xoom to improve cross-border payment functionalities using its stablecoin, PayPal USD (PYUSD). The payment giant noted in an announcement shared on November 19th that the move will help improve PYUSD’s reach in Asia and Africa.

And will also ensure faster settlement of transactions beyond traditional banking hours.

PayPal Expands PYUSD for Cross-Border Payments

Stablecoins play a huge role in cross-border transactions, especially in Asia and Africa, where locals rely on stablecoins to store and move money. Through partnerships with payment providers Cebuana Lhuillier and Yellow Card, PayPal plans to implement the use of PYUSD for cross-border payments in Africa and Asia.

Yellow Card’s CEO, Chris Maurice, believes stablecoins like PYUSD have huge potential to change global finance. Officials at PayPal state that this integration will help improve financial inclusion.

Big News

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

— Yellow Card App (@yellowcard_app) November 19, 2024

In addition, the integration will enable PayPal to send funds to their African recipients. Interestingly, these transactions would have options to either deposit funds in mobile money accounts or local bank accounts.

A Growing Expansion Plan

The move is part of PayPal’s effort to expand the use of its PYUSD stablecoin. The payment provider launched the stablecoin in 2023. Despite being newer than older stablecoins, PYUSD already boasts a higher market cap than FRAX and EURC. And is currently the sixth-highest stablecoin by market cap.

As part of its expansion plans, PayPal already launched PYUSD on Solana, in partnership with Crypto.com, Paxos, and Phantom. Additional initiatives include a rewards program in partnership with Anchorage Digital, incentivizing users to hold PYUSD within its ecosystem.

Despite its growing reach, PYUSD competes with market leaders like USDT and USDC, which dominate with significantly higher adoption and liquidity. However, PayPal’s focus on emerging markets and partnerships with regional payment providers give PYUSD a unique edge in areas underserved by traditional financial services.

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