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PayPal Enables No-Fee Cross-Border Transfer Using Native Stablecoin PYUSD

Sujha Sundararajan
Last updated: | 1 min read
PayPal Enables No-Fee Cross-Border Transfer Using PYUSD

Payments giant PayPal is bringing its native stablecoin PYUSD to fund cross-border money transfers with zero transaction fees.

The Silicon Valley-based company announced the new feature on Thursday, powered by its money transfer platform Xoom. Per the release, the service will be available to US users starting April 4.

The feature enables users to convert PYUSD stablecoin in their linked PayPal, to USD and use it as a funding source to send money to recipients in 160 countries globally. Transactions funded using the stablecoin will have no Xoom transaction fees, it added.

Jose Fernandez da Ponte, crypto senior vice president at PayPal, emphasized on creating a stable value for increased user confidence. He also noted that importance of its utility for commerce and payments.

“Enabling U.S. users of Xoom the option to fund cross-border money transfers using PYUSD builds on our goal of driving mainstream adoption of cryptocurrencies while also offering an easy way to securely send money to friends and family at a lower cost.”

How It Works


Xoom will convert PYUSD to USD currency without charging a crypto sale fee, when a US user selects the stablecoin. Following this, the recipient will receive funds in the fiat currency that the sender has chosen to ensure smooth transaction at either ends.

Further, the announcement read that there is a transaction exchange rate applicable for transactions not completed in USD.

PayPal’s Xoom service, last year, partnered with Visa Direct that let US users send money directly to debit card holders.

Compared to traditional international remittances, cryptocurrency transactions are much less expensive as there is no middlemen and related fees. That said, cryptos like Bitcoin and Ripple have emerged as disruptive forces, which have numerous advantages over conventional methods.

According to Bank of International Settlements’s (BIS) report on stablecoins in cross-border payments, these asset class have emerged as a promising solution to the issues that plague traditional payment methods.

As stablecoins, unlike Bitcoin, are pegged to a stable asset, it ensures that their value remains relatively steady, providing a reliable means of exchange, the report read.