Key Points:
PayPal's Xoom will waive fees for transfers using PYUSD stablecoin, eliminating 2% industry charges.
PayPal PYUSD bridges traditional finance and DeFi, facilitating global transfers.
The company anticipates PYUSD's success through alternative revenue streams, emphasizing increased crypto adoption in remittances.
PayPal's international remittance service, Xoom, is set to waive fees for users opting to transfer funds using the company's stablecoin, PYUSD.
Xoom Introduces Fee-Free Transfers with PayPal PYUSD Stablecoin
According to PayPal's SVP, Jose Fernandez da Ponte, in an interview with Fortune, senders utilizing Xoom will enjoy fee-free transactions, a significant departure from the industry's average 2% charges. Recipients will receive funds in their local currency as usual. Operating in 160 countries with over 350,000 cash pickup locations, Xoom aims to streamline global money transfers.
PayPal PYUSD, a US dollar-pegged stablecoin, is tailored for digital payments and Web3 environments. Unlike other stablecoins, PYUSD is regulated by the New York Department of Financial Services, offering stability akin to traditional fiat currency. Issued by Paxos Trust Company, PYUSD bridges decentralized finance (DeFi) and traditional finance (TradFi), facilitating efficient money movement.
PayPal Anticipates PYUSD's Impact on Crypto Adoption
Despite Tether and Circle's dominance in the stablecoin market, with market caps around $100 billion and $30 billion, respectively, PayPal PYUSD, currently at approximately $225 million, marks a notable contender. Fernandez da Ponte believes PYUSD's value proposition lies in alternative revenue streams rather than interest on reserves, envisioning its success in terms of intake rates and traditional payment services.
As PayPal continues integrating PYUSD across platforms like Venmo and exploring vendor payments in PYUSD, the company anticipates leveraging remittances to expand crypto adoption.
While the introduction of PYUSD won't significantly affect PayPal's stablecoin supply, Fernandez da Ponte underscores the potential for increased crypto acceptance among remittance recipients, hinting at broader opportunities.
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