In a significant move, Xoom, PayPal’s renowned cross-border money transfer service, has unveiled a new funding option for U.S. users. Effective immediately, individuals in the United States will have the opportunity to finance money transfers to their friends and family overseas using USD converted from PayPal USD (PYUSD), a stablecoin denominated in U.S. dollars.

The introduction of this new funding option, available exclusively to U.S. users, marks a significant milestone for Xoom. By leveraging PYUSD to finance cross-border money transfers, users can effortlessly convert their PYUSD holdings in their linked PayPal Cryptocurrency Hub into USD. This move not only enhances convenience but also eliminates transaction fees for eligible transfers to recipients in approximately 160 countries worldwide.

Meeting Consumer Demand for Cost-effective Solutions

This development comes at a time when consumers are increasingly seeking cost-effective alternatives for cross-border payments. According to the World Bank’s Q3 2023 report, the global average cost of sending $200 stands at just over 6%. With Xoom’s new funding option, users can now benefit from lower-cost transfers, as transactions funded using USD converted from PYUSD incur no Xoom transaction fees.

Streamlined Process for Funding Xoom Transactions

For U.S. Xoom users with a sufficient balance of PYUSD in their PayPal Cryptocurrency Hub, funding a transfer using PYUSD is a straightforward process. Through Xoom.com, PayPal.com, or the PayPal app, users can follow these simple steps:

1. Tap the “Send Money” button.
2. Select the destination country.
3. Choose the preferred delivery method for the recipient.
4. Enter the recipient’s account or mobile wallet information, or select a pickup location, and provide the necessary personal details.
5. Opt for PYUSD as the funding source and confirm the sale of PYUSD to USD to cover the Xoom transaction.
6. Review the transaction details and proceed to send, ensuring that the recipient will receive funds in their chosen fiat currency.

Driving Mainstream Adoption of Cryptocurrencies

Jose Fernandez da Ponte, Senior Vice President of the Blockchain, Cryptocurrency, and Digital Currency Group at PayPal, emphasized the company’s commitment to mainstream adoption of cryptocurrencies. By enabling U.S. users to fund cross-border transfers using PYUSD, PayPal aims to combine stability and utility, offering a secure and cost-effective solution for sending money globally.

As a pioneer in digital remittances, Xoom provides a fast and reliable platform for sending money, paying bills, and reloading phones for friends and family in over 160 countries worldwide. Users can access Xoom’s services through the Xoom or PayPal mobile app, or by visiting Xoom.com or PayPal.com.