Xoom Adds PayPal USD for Cross-Border Transfers

Xoom, PayPal's cross-border money transfer service, has announced that U.S. users now have the option to fund money transfers to friends and family abroad using USD converted from PayPal USD (PYUSD), a U.S. dollar-denominated stablecoin. This new funding option allows U.S. Xoom users to easily convert the PYUSD in their linked PayPal Cryptocurrency Hub to USD and use that as a funding source to send money to recipients in approximately 160 countries globally with no Xoom transaction fees.

The introduction of this option comes at a time when consumers are seeking more cost-effective methods for cross-border payments. According to the World Bank's Q3 2023 report, the global average cost of sending $200 is just over 6%. By offering transfers funded using USD converted from PYUSD with no Xoom transaction fees, the service provides a lower-cost alternative for international remittances.

When this option is selected, Xoom converts the PYUSD in a U.S. user's PayPal Cryptocurrency Hub to USD currency with no crypto sale fee. Recipients then receive the funds in the fiat currency selected by the sender, providing a reliable way for U.S. users to send money abroad using the stablecoin as a source.

"When we decided to bring PayPal USD to market, we had two objectives we wanted to achieve: create something that had a stable value to maximize user confidence and ensure it had utility for commerce and payments," said Jose Fernandez da Ponte, Senior Vice President of the Blockchain, Cryptocurrency, and Digital Currency Group, PayPal. "Enabling U.S. users of Xoom the option to fund cross-border money transfers using PYUSD builds on our goal of driving mainstream adoption of cryptocurrencies while also offering an easy way to securely send money to friends and family at a lower cost."

U.S. Xoom users with a sufficient PYUSD balance in their PayPal Cryptocurrency Hub can select PYUSD to fund their transfer when using Xoom.com, PayPal.com, or the PayPal app. The process involves selecting the destination country, choosing how the money will be delivered, and entering the recipient's account or mobile wallet information.

After entering the recipient's details, users select PYUSD as their payment method and confirm the sale of their PYUSD to USD to cover the transaction. The USD sale proceeds are then used to complete the transfer. While there are no Xoom transaction fees for this funding method, transactions that are not completed in USD remain subject to a transaction exchange rate, which includes a currency conversion spread.

As a pioneer in digital remittances, Xoom provides a fast and easy way to send money, pay bills, and reload phones for friends and family in approximately 160 countries globally. Customers can access these services by downloading the Xoom or PayPal mobile apps or by visiting their respective websites.