PayPal Announces Partnership with Xoom to Expand PayPal USD in Cross-Border Payments
KEY TAKEAWAYS
- PayPal partners with Xoom to integrate PayPal USD ($PYUSD) for cross-border payments.
- Partnerships with Cebuana Lhuillier, Yellow Card, Anchorage Digital, and MoonPay expand $PYUSD's ecosystem.
- Since entering crypto in 2020, PayPal has continuously expanded its offerings, including adopting $PYUSD for merchants.
On Tuesday, PayPal announced a partnership with Xoom to integrate PayPal USD ($PYUSD) stablecoin into cross-border payment systems.
The partnership aims to expand $PYUSD's accessibility in Asian and African markets, enabling international transactions outside traditional banking hours without the constraints of national time zones.
PayPal highlighted Xoom's collaboration with Cebuana Lhuillier and Yellow Card to manage $PYUSD disbursements. Chris Maurice, CEO of Yellow Card, emphasized that stablecoins like $PYUSD are revolutionizing payment systems.
PayPal USD ($PYUSD) - What Is It?Launched in 2023, $PYUSD is backed 1:1 by the US dollar and issued by Paxos Trust Company, a regulated crypto asset custodian in the United States.
As an ERC-20 token compatible with Ethereum, $PYUSD is the only stablecoin integrated into PayPal's payment systems.
PayPal stated that $PYUSD is designed to be accessible to developers, wallets, Web3 applications, and cryptocurrency exchanges.
$PYUSD Integrations Promise Significant UtilityPayPal has implemented several initiatives to increase the adoption of $PYUSD. It partnered with Anchorage Digital to offer a rewards program for customers holding PayPal USD on its platform.
In May, PayPal expanded $PYUSD to the Solana blockchain in collaboration with Crypto.com and Phantom, aiming to attract users to the network.
It also worked with Web3 infrastructure provider MoonPay to facilitate cryptocurrency purchases through PayPal accounts. This integration included the Polymarket crypto betting platform, which launched in July.
This allowed US users to buy and sell over 100 cryptocurrencies through PayPal, bank transfers, or debit cards. Which further solidified the company's position in the crypto industry.
Despite these efforts, $PYUSD trails behind $USDT and $USDC, which have market capitalizations of approximately $128B and $37B, respectively, according to CoinGecko.
PayPal and Cryptocurrencies - A Wonderful JourneyPayPal entered the cryptocurrency market in October 2020 by allowing users to buy, sell, and store digital assets like Bitcoin, Ethereum, Litecoin, and Bitcoin Cash directly on its platform. This move during the Covid-19 bull market opened access to digital assets for millions of users.
In August 2023, during the crypto bear market, PayPal launched its stablecoin, PayPal USD ($PYUSD), marking a significant step in its cryptocurrency strategy.
By September 2024, PayPal enabled US merchants to buy, hold, and sell cryptocurrencies directly from their business accounts to meet the growing demand for crypto resources among entrepreneurs.
The following month, in October 2024, PayPal executed its first commercial payment using $PYUSD. The transaction, made to Ernst & Young, was conducted via SAP's digital currency platform, demonstrating the stablecoin's practical applications in corporate operations.
$PYUSD Growing to Higher Levels?PayPal's partnership with Xoom to integrate $PYUSD into cross-border payment systems targets increased adoption in Asia and Africa.
If we add its Anchorage Digital and MoonPay partnerships alongside the Solana expansion, $PYUSD seems primed to take over the stablecoin industry soon.
ReferencesClick to expand and view sources- Xoom $PYUSD Partnership (Xoom)
- PayPal to allow cryptocurrency buying, holding and selling for US merchants (Reuters)
- PayPal makes its first commercial payment with the stablecoin." (CincoDias)
- $PYUSD Historical Performance (Investing)
- $PYUSD Performance (CoinGecko)
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