Xoom clients in the US can now use PayPal USD (PYUSD), the stablecoin tied to the U.S dollar, to fund international transfers without incurring any transaction fees. This option was recently introduced by Xoom, a cross-border money transfer service operated by PayPal.

The move to allow the use of PayPal USD comes at a time when individuals seek more economical ways to send money overseas. Given the high cost associated with international money transfers, companies are exploring innovative solutions to attract customers worldwide.

Ripple collaborated with Onafriq to facilitate international money transfers across various regions such as the GCC, Africa, the United Kingdom, and Australia, recognizing the need for more affordable and efficient payment solutions. Xoom aims to offer a budget-friendly alternative to PYUSD transfers by eliminating transaction fees and enabling transfers funded in USD.

Further advancements in the adoption of PayPal USD are being supported by Paxos and Chainlink, marking a strategic partnership between the stablecoin issuer and the blockchain provider. PayPal introduced the USD-pegged stablecoin in August 2023 to enhance its digital payment offerings and promote the use of digital currencies for transactions.

In conclusion, Xoom's decision to accept PayPal USD aligns with the company's mission to provide accessible and cost-effective international money transfer options, ultimately benefiting its customers seeking efficient cross-border payment solutions.