PayPal, which is based in California, the well-known Silicon Valley, is going to aim at widening its PYUSD crypto application among its US customers. As a result, it will become possible to use this currency for cross-border money transfers, as well. Now through Paypal, individuals will can pay through Xoom since this service will be providing PayPal U.S. clients with means for cross-border payments through their cross-border payments service Xoom without any incurred transaction fees, starting this Thursday. This tactical move of bringing down the cost of international money transfers is with the vision of providing a cost-effective solution for this kind of transaction and this vision is supported by the World Bank report by indicating the high costs of the same.
The action by PayPal to be able to transfer funds internationally through its PYUSD stablecoin is a very crucial step in the direction of easing the burden of costs on users. Besides easing the transfers of money through Xoom, PayPal also guarantees that users send their energy to other countries without the numerous costs inherently together with the traditional banking services. Since the current average cost per transfer of 200 USD outside Africa accounts for around 6%, the company resolves to surpass that number using its innovative approach.
Paypal Fostering cryptocurrency adoption
Including PYUSD in cross-border transactions will comply with the company’s larger ambition of facilitating the realization of the mass adoption of cryptocurrencies. José Fernandez da Ponte, PayPal’s SVP of blockchain, crypto, & digital currency, noted the firm’s plans to enable the use of crypto and digital currencies in the real world so that consumers can use these assets in their everyday lives. PayPal’s initiative of enabling U.S. Xoom customers to transfer funds in PYUSD is not only leading the company toward digital assets supremacy but also promoting the picture of PayPal as the trailblazer of this space.
PayPal’s entry into a stablecoin market is timely when this kind of business is exemplifying the substantial growth recently. A supranational stablecoin is the latest addition to Ripple‘s enterprise solutions and, according to estimates, the market could expand to as much as $2.8 trillion by 2028 indicating that the market is intertwined with ups and downs of financial activity. Our times are marked by the dominating positions of the USDT stablecoin by Tether and the USDC stablecoin by Circle on the stablecoin list, but the entrance of the company into this arena through the PYUSD (PayPal’s Stablecoin) proves the ever-growing and shifting interest there is in the stablecoins’ market.
Conclusion
Through a decision to add PYUSD-based international money transfers to its payment system, PayPal promotes not only the reputation of its stablecoin but also in general the expansion of cryptocurrencies into the sphere of consumers and businesses. the company’s innovative concept will face the challenge of the stable market development of stablecoins. But we can believe and hope that this approach can be a factor in favor of efficient and cheap financial transactions and not only on a global scale but also on faceless transactions.
