PayPal is launching a new era in cross-border payments.

PayPal has teamed up with Xoom to accelerate and simplify cross-border payments using its own stablecoin, PYUSD. The partnership aims to expand digital payment access in Asian and African markets. This strategic move is seen as a significant step towards strengthening PayPal's global payment network and promoting the use of digital currencies.

Major Partnership Between PayPal and Xoom

PayPal announced that it has joined forces with Xoom to increase the international use of its stablecoin, PYUSD. Under the recently announced collaboration, the goal is to promote the use of PYUSD, particularly in Asian and African markets, and to enable transactions outside of bank working hours.

To facilitate payments through PYUSD, Xoom has partnered with Cebuana Lhuillier and Yellow Card. Chris Maurice, a senior executive at Yellow Card, highlighted the transformation that digital currencies are bringing to the payment sector, emphasizing that this collaboration will make money transfers more efficient.

PYUSD, which operates on the Ethereum Blockchain network under the ERC-20 standard, was launched in 2023. Managed by the licensed U.S. crypto custody firm Paxos Trust Company, PYUSD is backed by one U.S. dollar for each unit. As the only stable cryptocurrency accepted in PayPal's payment systems, PYUSD is compatible with developers, digital wallets, and Web3 applications.

PayPal is taking various steps to expand the use of PYUSD. Through its collaboration with Anchorage Digital, the company offers reward programs to its customers and launched PYUSD on the Solana Blockchain network in May in partnership with Crypto.com, Phantom, and Paxos. The company has also signed an agreement that allows cryptocurrency purchases through MoonPay and collaborated with the crypto prediction platform Polymarket in July.

Offering institutional custody services, PayPal encourages users who hold stablecoins on its platform. For example, the payment company PayPal provides an annual return of 5.2% to USDC holders. While PayPal continues to promote its own stablecoin with new initiatives, the market value of PYUSD remains significantly lower than leading stablecoins like USDt and USDC.