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PayPal’s stablecoin is beginning to disrupt international payments. And it might just be the very beginning.
What’s happening:
- PayPal (NASDAQ: PYPL) has announced that users will now be able to use their stablecoin PYUSD for international money transfers and cross border payments
Why it matters:
- PayPal became the very first publicly traded payments company to ever issue their own stablecoin with the launch of PYUSD
- Enabling PYUSD to be used for cross border payments could be a massive disruption for legacy financial companies that rely on charging significant fees for international money transfers
How it works:
- Through PayPal’s money transfer service Xoom, PayPal users are able to instantly convert PYUSD to USD and then send money transfers globally
- All the transfers done within Xoom are processed without any fees whatsoever
By the numbers:
- USD converted from PYUSD will now be able to be used for cross border payments to 160 countries globally through Xoom
Going deeper:
- PayPal has been an early adopter of crypto and digital assets, previously becoming one of the first large payments companies in North America to enable users to transact with crypto for purchases
The intrigue:
- Ripple recently announced their plans to launch a US dollar denominated stablecoin, which represents their first major new project since the debut of their payment network token XRP
