PayPal introduces a new feature allowing US users to transfer money abroad using the PayPal USD (PYUSD) stablecoin, excluding residents of Hawaii.
Through Xoom, users can convert PYUSD to USD and send money to 160 countries with no transaction fees. Jose Fernandez da Ponte, PayPal’s Senior VP, highlights the stable value and utility of PYUSD.
This launch comes amid growing competition in the stablecoin market, with Tether and USDC leading. PYUSD, launched on Ethereum in 2023, aims to streamline payments and international transfers.
PayPal’s introduction of PYUSD allows users to convert to USD without crypto sale fees. Recipients can opt for automated withdrawals in their preferred fiat currency. Transactions can be sent to various destinations, but non-USD amounts are subject to exchange rate fluctuations.
Managed by Paxos Trust Co. Limited, PYUSD’s market capitalization may not rival USDC or Tether. PayPal aims to ensure stability, and trust, and enhance its platform’s value for commerce and payments.
Despite regulatory concerns, the move is well-received in the crypto industry. Major exchanges list PYUSD and PayPal partners with Crypto.com. However, PayPal faces scrutiny from the SEC, receiving a subpoena in November.
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