PayPal announced its partnership with Xoom to enhance cross-border payment functionalities using the stablecoin PayPal USD (PYUSD).
Xoom Partnership
In an announcement on November 19th, PayPal stated that the collaboration with Xoom aims to expand PYUSD's reach in Asia and Africa and ensure faster transaction settlements beyond traditional banking hours. Stablecoins play a significant role in cross-border transactions, especially in Asia and Africa, where locals rely on them to store and move money.
Expanding PYUSD Usage
Through partnerships with Cebuana Lhuillier and Yellow Card, PayPal plans to implement PYUSD for cross-border payments in Africa and Asia. Yellow Card’s CEO, Chris Maurice, believes that stablecoins like PYUSD have the potential to transform global finance. PayPal officials state that this integration will help improve financial inclusion.
Growth and Future of the Stablecoin
This move is part of PayPal's effort to expand its PYUSD stablecoin usage, launched in 2023. Despite being newer than older stablecoins, PYUSD already boasts a higher market cap than FRAX and EURC and is currently ranked the sixth-highest stablecoin by market cap. As part of its expansion plans, PayPal has launched PYUSD on Solana in partnership with Crypto.com, Paxos, and Phantom. Additional initiatives include a rewards program with Anchorage Digital, incentivizing users to hold PYUSD.
The collaboration with Xoom and further expanding PYUSD usage in Africa and Asia strengthens PayPal's position in markets underserved by traditional financial services.
