PayPal website now allows conversions between PYUSD and USD for international money transfers

PayPal now offers PYUSD to USD conversion as part of its expansion of international transfer options. PayPal, the global payment giant, has announced that all US users will be able to send money to friends and family abroad using USD converted from the PayPal USD (PYUSD) stablecoin.PYUSD, however, is not available to residents of Hawaii.

PYUSD to USD Conversions for Cross-Border Transfers

PayPal said that US clients who use its cross-border payments network, Xoom, will be able to convert PYUSD to USD and send money to recipients in around 160 countries. There will be no transaction fees, according to an official announcement issued on April 4th.

PayPal’s Senior Vice President of Blockchain, Cryptocurrency, and Digital Currency Group, Jose Fernandez da Ponte, stated, “When we decided to bring PayPal USD to market, we had two objectives: create something with a stable value to maximize user confidence and ensure utility for commerce and payments.” Enabling U.S. Xoom customers to pay cross-border money transfers using PYUSD advances our goal of boosting widespread use of cryptocurrencies while also providing an easy way to securely send money to friends and family at a cheaper cost.”

The stablecoin market seems to be heating up. While Tether’s USDT and Circle-backed USDC remained the world’s top stablecoins, other competitors emerged to vie for market dominance. Blockchain company Ripple also revealed intentions to launch a USD-pegged stablecoin “later this year.”

Embracing PayPal’s Stablecoin

In August 2023, PayPal partnered with Paxos to develop PYUSD, a dollar-backed stablecoin on the Ethereum network. The fintech startup then stated that the primary goal was to minimise friction for in-experience payments in virtual settings by enabling cost-effective and cheaper value transfers, remittances, and international payments.

Prominent figures in the cryptocurrency business praised the “bold” decision amidst regulatory uncertainties in the United States. Several large cryptocurrency exchanges, including Huobi, Kraken, Crypto.com, and Coinbase, launched PYUSD listings in the same month. The stablecoin has also been launched on Venmo. Subsequently, Crypto.com announced a cooperation with PayPal to become the preferred exchange for PYUSD. In November, PayPal admitted to getting a subpoena from the Securities and Exchange Commission (SEC) about its stablecoin.