PYUSD, the stablecoin di PayPal, aims to revolutionize international transactions

PayPal has announced a significant step in the evolution of digital payments, utilizing the Xoom service to enable cross-border transactions with its stablecoin, PayPal USD (PYUSD).

PayPal is making waves in the world of digital payments once again. The company has announced that it will be using Xoom to facilitate cross-border transactions with its stablecoin, PayPal USD (PYUSD).

This move is part of a larger strategy to expand the use of stablecoins in international markets, particularly in Asia and Africa. The aim is to improve the efficiency of global transactions, especially during non-traditional banking hours, and to enhance access to financial services worldwide.

PYUSD, launched earlier this year, is pegged 1:1 to the US dollar and is issued by Paxos Trust Company, a recognized authority in the cryptocurrency sector. Since its launch, PYUSD has been facing the challenge of competing with established stablecoins like USDC from Circle Internet Financial. However, PayPal is investing resources to extend the impact and utility of its stablecoin.

In this endeavor, Xoom, Cebuana Lhuillier, and Yellow Card will play a crucial role in managing the distribution of payments in PYUSD, opening up new possibilities for customers in emerging markets.

Commenting on the matter, Chris Maurice, CEO of Yellow Card, had the following to say:

“Stablecoins like PYUSD are transforming the global payments landscape, and thanks to our integrated infrastructure and technology, users will be able to move money more efficiently.”

With PYUSD, PayPal is aiming to not only improve accessibility but also ensure that transactions are simple and secure, especially for those living in regions with limited access to traditional banking services.

Moreover, thanks to the new partnership, cross-border transactions can also be settled outside of traditional banking hours, a crucial aspect for supporting trade and personal payments on a global level.

Technology and Infrastructure Supporting the Stablecoin

One of the key features of PYUSD is that it is compatible with the Ethereum ecosystem, being an ERC-20 token. This allows easy integration with various digital wallets, Web3 applications, and cryptocurrency exchanges, making the stablecoin highly flexible for developers and businesses.

PayPal has been working consistently to ensure that PYUSD is adopted on a large scale, collaborating with major companies in the crypto sector.

During 2024, PayPal launched new integrations to enhance the use of PYUSD. Among these, a rewards program with Anchorage Digital. That is a cryptocurrency custodian, which incentivizes customers to hold PYUSD by offering rewards to holders.

The company has also facilitated the purchase of cryptocurrencies using PayPal accounts, thanks to the partnership with MoonPay, a Web3 infrastructure provider.

PayPal then expanded its offerings by bringing PYUSD to the Solana blockchain, an operation carried out in collaboration with Crypto.com, Phantom, and Paxos.

This operation has allowed users to access a blockchain network characterized by high speed and reduced transaction costs, increasing the possibilities of using the stablecoin.

The Challenge in the Stablecoin Market

Despite the efforts and new collaborations, PYUSD still has to face strong competition from leading stablecoins like Tether’s USDT and Circle’s USDC.

With a market capitalization reaching 128 billion dollars and 37 billion dollars respectively, these two stablecoins dominate the sector.

However, PayPal is focusing on its vast network of global users and technological innovations to bridge the gap and capture a larger market share.

According to the most recent data, PYUSD is still building its user base and its transaction volume.

However, the company stated that it is confident in the growth potential, considering that stablecoins are gaining more and more relevance in the global financial landscape.

With an infrastructure designed for scalability and security, PayPal aims to make a difference, also thanks to the support of its technological partners.