Xoom , PayPal's cross-border money transfer service, now allows US users to fund transfers abroad using USD converted from the PayPal USD (PYUSD) stablecoin. This new funding option will be available to US Xoom users, allowing them to convert PYUSD in their linked PayPal Cryptocurrency Hub to USD and use it to send money to recipients in around 160 countries globally, with no Xoom transaction fees.

This move by Xoom comes as consumers seek cost-effective options for cross-border payments. According to the World Bank's Q3 2023 report, the global average cost of sending USD 200 is over 6%. With no Xoom transaction fees, cross-border money transfers funded using USD converted from PYUSD provide a lower cost option on Xoom.

By offering the option to fund cross-border money transfers with USD converted from PYUSD, Xoom now provides a convenient and dependable way for US users to send money abroad using PYUSD as a funding source. When users select this option, Xoom will convert the PYUSD in their PayPal Cryptocurrency Hub to USD currency with no crypto sale fee, and recipients will receive funds in the fiat currency chosen by the sender. The Senior Vice President of the Blockchain, Cryptocurrency, and Digital Currency Group at PayPal remarked that providing US users of Xoom the option to fund cross-border money transfers using PYUSD aligns with their objective of promoting widespread acceptance of cryptocurrencies, while also providing a simple and secure method for sending money to friends and family at a reduced expense.

To fund Xoom transactions using PYUSD, US Xoom users with a sufficient PYUSD balance in their PayPal Cryptocurrency Hub can select PYUSD to fund their transfer on Xoom.com, PayPal.com, and the PayPal app. They can follow these steps: Tap the 'Send Money' button Select the destination country Choose the recipient's account or mobile wallet information, or select a pickup location and provide the recipient's personal information Select PYUSD as the payment method and confirm the sale of PYUSD to USD to cover the Xoom transaction Review the transaction details and confirm to send (recipients will receive funds in the fiat currency chosen by the sender) Transactions not completed in USD are subject to a transaction exchange rate, which includes a currency conversion spread. Xoom, a pioneer in digital remittances, offers a fast and easy way to send money, pay bills, and reload phones for friends and family in around 160 countries globally.

Customers can access this service by downloading the Xoom or PayPal mobile app, or by visiting Xoom.com or PayPal.com. .