PayPal has announced that its cross-border payments platform, Xoom, will now offer settlement services using PayPal USD (PYUSD). This marks a significant step in integrating stablecoins into global money transfers.
As revealed in a press release on Tuesday, 19th November, the service will initially be available to Xoom’s disbursement partners, with Cebuana Lhuillier, a financial services provider in the Philippines, and Yellow Card, an African FinTech firm, being the first adopters.
Jose Fernandez da Ponte, PayPal’s Senior Vice President for Blockchain, Cryptocurrency, and Digital Currencies, stated:
“Cross-border transactions are essential for fostering economic growth and development in emerging markets. By leveraging PayPal’s advanced payment technologies and blockchain capabilities, Xoom and its partners, such as Cebuana Lhuillier and Yellow Card, can facilitate seamless international money transfers.”
Cebuana Lhuillier, described as the Philippines’ largest micro-financial services provider, has collaborated with PayPal for 18 years to enable remittance services in the region. Meanwhile, Yellow Card, which became the first African FinTech to list PYUSD in 2023, has been pivotal in expanding PayPal’s reach across the continent.
Chris Maurice, CEO and co-founder of Yellow Card, expressed enthusiasm for the partnership:
“We’re delighted to join forces with Xoom to enhance money transfers across Africa and other emerging regions. PayPal’s embrace of stablecoins like PYUSD is reshaping the payments industry, and by integrating our infrastructure, they can deliver efficient, stablecoin-driven solutions.”
Earlier in 2024, Xoom introduced the ability for users in the United States to utilise PYUSD from their PayPal Cryptocurrency Hub to fund transactions in US dollars for recipients in over 160 countries.
This development underscores PayPal’s commitment to exploring blockchain technology to modernise financial services. It aligns with recent comments by Mastercard’s Raj Dhamodharan, who noted the transformative potential of blockchain for cross-border remittances. However, he highlighted challenges, particularly in simplifying consumer experiences for widespread adoption.
As stablecoins like PYUSD gain traction, PayPal’s integration of these technologies represents a significant stride towards more efficient, transparent, and inclusive global payments.
