PayPal’s native stablecoin PYUSD will be used by Xoom to help settle cross-border money transfers to enhance the speed of transactions.
PayPal confirmed its partners Cebuana Lhuilier and Yellow Card will be the first to use PYUSD to settle cross-border transfers.
Cebuana Lhuilier, a micro-financial service provider in the Philippines, and Yellow Card, the largest stablecoin provider in Africa, will send stablecoin cross-border transfers to and from their respective regions to unearth new capabilities of this transaction process.
Jose Fernandez da Ponte, SVP of Blockchain, Cryptocurrency, Digital Currencies, at PayPal, said: “Cross-border transactions are an important driver for economic growth and prosperity in developing countries.
“With this step, Xoom and its partners, like Cebuana Lhuillier and Yellow Card, will be able to leverage PayPal’s payment technologies and the blockchain to further enable seamless money transfers across borders.”
The integration of PYUSD for cross-border transactions represents a new opportunity for financial inclusion in both Asia-Pacific and Africa. Stablecoins have the potential to significantly accelerate the cross-border settlement process whilst also being readily available for use by companies like Cebuana Lhuillier and Yellow Card.
In addition, PayPal will be able to conduct cross-border settlement transactions without being restricted by traditional banking hours.
Xoom will use PYUSD to settle cross-border money transfers made by PayPal customers via Yellow Card’s stablecoin-based payment rails, helping to optimise cross-border transactions and make them quicker to process and less costly.
Furthermore, Yellow Card’s payout capabilities will enable PayPal customers to send funds to friends and family across Africa, with money deposited in their local African bank or mobile money accounts.
Chris Maurice, CEO and Co-Founder of Yellow Card, said: “We are thrilled to partner with Xoom to support money transfers made by PayPal customers across the African continent and rising world.
“PayPal understands that stablecoins like PYUSD are changing the payments landscape, and by integrating our technology, they will be able to move money in the most effective way possible thanks to our stablecoin and payments infrastructure.”
This builds on PayPal’s announcement in April that it was giving its Xoom users in the US the ability to fund fiat money transfers to friends and family abroad using PYUSD with no transaction fees.
