PayPal taps Xoom for cross-border stablecoin payments
PayPal has tapped Xoom to enable cross-border payments using PayPal USD (PYUSD), the payments giant announced on November 19, 2010.
The partnership is designed to expand PYUSD's access to markets in Asia and Africa and enable PayPal to settle cross-border transactions outside of traditional banking hours, PayPal said.
Xoom is working with Cebuana Lhuillier and Yellow Card to handle PYUSD payments.
“[S]”Stable coins like PYUSD are changing the payments landscape, and by integrating our technology, you can move money as efficiently as possible thanks to a stable coin and payment infrastructure,” Yellowcard CEO Chris Morris said in a statement.
Source: CoinMarketCap
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In the year Launched in 2023, PYUSD is backed 1:1 by the US dollar and is issued by Paxos Trust Company, a US-controlled crypto custodian. It competes with other regulated, dollar-backed stablecoins such as Circle Internet Financial's USD Coin (USDC).
An ERC-20 token compatible with Ethereum, PYUSD is the only stablecoin supported on PayPal's payment rails. According to PayPal, it is “available to an already large and growing community of external developers, wallets and Web3 applications” and is designed to be easily onboarded by cryptocurrency exchanges.
PayPal has been taking steps to expand PYUSD's reach, including working with Anchorage Digital to launch a rewards program for customers who hold PayPal USD stablecoins with the crypto custodian.
In May, PayPal launched PYUSD on Solana, partnering with Crypto.com, Phantom and Paxos for users using the blockchain network.
It has also partnered with Web3 infrastructure provider MoonPay to buy cryptocurrency using a PayPal account. That partnership was extended to crypto betting Polymarket for existing users in July.
Coinbase, which has an institutional escrow arm, also encourages users to hold stablecoins on the platform. It currently yields an annual percentage yield of approximately 5.2% on USDC. Coinbase has an equity stake in Circle.
Despite its recent successes, PYUSD still lags behind the dollar-pegged stablecoins USDt (USDT) and USDC. According to data from CoinMarketCap, the two leading storcoins command a market capitalization of $128 billion and $37 billion.
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