PayPal enables PYUSD for Cross border payments via Xoom
PayPal announced today that it will allow disbursement partners to settle cross-border money transfers made with Xoom using PayPal USD (PYUSD), according to a press release.
PYUSD was introduced in 2023 and is issued by Paxos Trust Company, a cryptocurrency custodian regulated in the US. It is backed 1:1 by US dollars. It faces competition from other dollar-backed, regulated stablecoins, like USD Coin (USDC) from Circle Internet Financial.
PayPal partners Xoom to enable cross-border payments using its stablecoin
Yellow Card and Cebuana Lhuillier will be the first Xoom disbursement partners to settle cross-border money transfers using PYUSD, enabling them to leverage blockchain technology's cost and speed advantages. Distribution partners in New York State will not have access to settlement functionality at launch, the post added.
These upcoming integrations will increase access to digital financial solutions throughout Asia-Pacific and Africa, thereby promoting financial inclusion. Furthermore, PayPal will be free from the constraints of traditional banking hours to carry out cross-border settlement transactions.
Jose Fernandez da Ponte, Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies, PayPal, said, "With this step, Xoom and its partners, like Cebuana Lhuillier and Yellow Card, will be able to leverage PayPal's payment technologies and the blockchain to further enable seamless money transfers across borders." Fernandez da Ponte also explained why cross-border transactions are a significant driver for economic growth in developing countries.
PayPal and Cebuana Lhuillier partner
With 3,500 branches and 25,000 partner agent locations nationwide, Cebuana Lhuillier, the biggest microfinancial services provider in the Philippines, has a strong network that allows Filipinos all over the world to send money home. PayPal and Cebuana Lhuillier have been working together to make money transfers to the Philippines easier for the last eighteen years.
According to Jean Henri Lhuillier, President and CEO of Cebuana Lhuillier, "PayPal's payment services, our extensive rails with PDAX and Philippine banks, and our vast network of physical touchpoints enable us to deliver to last mile areas that are in need of support."
PayPal extends its partnership with Yellow Card
Additionally, PayPal has expanded its collaboration with Yellow Card, the largest and first authorized stablecoin on/off ramp in Africa. This comes after the integration that made Yellow Card the first African fintech to list PYUSD last year.
Chris Maurice, CEO and Co-Founder of Yellow Card, said, "We are thrilled to partner with Xoom to support money transfers made by PayPal customers across the African continent and the rising world.
PayPal customers' cross-border money transfers made through Yellow Card's stablecoin-based payment rails will be settled by Xoom using PYUSD, which will optimize cross-border transactions and make them less expensive and faster to process.
Additionally, Yellow Card's payout features will soon allow PayPal users to transfer money to friends and family in Africa, with the funds being deposited into their local mobile money accounts or African banks.
PayPal announced in April that it was allowing its Xoom users in the United States to fund fiat money transfers to friends and family overseas using PYUSD without incurring transaction fees. PayPal introduced PYUSD on Solana in May, collaborating with Paxos, Phantom, and Crypto.com to onboard users to the blockchain network. Additionally, MoonPay, a Web3 infrastructure provider, has partnered with it to enable cryptocurrency purchases through PayPal accounts. In July, that partnership expanded to include on-ramping users to Polymarket, a cryptocurrency betting platform.
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