Coin WorldThursday, Jun 26, 2025 10:36 am ET

1min read

PayPal has announced a significant advancement in its cross-border payments service, Xoom, by allowing its disbursement partners to use PayPal USD (PYUSD), its stablecoin, to settle cross-border money transfers. This move is part of PayPal's broader strategy to integrate blockchain technology and stablecoins into its payment infrastructure, aiming to facilitate seamless and efficient money transfers across borders.

The new service will initially be offered to Cebuana Lhuillier, a Philippines-based financial services firm, and Yellow Card, a FinTech company in Africa. Cebuana Lhuillier, a long-time partner of PayPal, has been facilitating money disbursements to the Philippines for 18 years. Yellow Card, which integrated with PayPal last year, is the first FinTech in Africa to list PYUSD. This partnership will enable PayPal customers to make money transfers across the African continent and other regions more effectively.

PayPal's senior vice president of blockchain, cryptocurrency, and digital currencies, Jose Fernandez da Ponte, emphasized the importance of cross-border transactions for economic growth and prosperity in developing countries. By leveraging PayPal’s payment technologies and blockchain, Xoom and its partners can further enable seamless money transfers across borders. This move is expected to enhance the efficiency and cost-effectiveness of cross-border remittances, a critical aspect of financial services in many developing economies.

Earlier this year, Xoom began allowing users to make transactions with PYUSD, enabling customers in the United States to convert the stablecoins in their linked PayPal Cryptocurrency Hub to U.S. dollars to fund transactions to recipients in approximately 160 countries. This development underscores PayPal's commitment to expanding the use of stablecoins in real-world financial and commercial applications.

The integration of stablecoins into PayPal's services is part of a broader trend in the financial industry, where major players are exploring the potential of blockchain technology to revolutionize payment systems. Stablecoins, which are designed to maintain a stable value, offer a promising solution for reducing the time and costs associated with cross-border remittances. By embedding stablecoins into real-world financial and commercial use cases, PayPal aims to create a more efficient and user-friendly payment ecosystem.

PayPal's initiative to create a truly stablecoin use case for users is a significant step forward in the adoption of digital currencies. By leveraging the stability and efficiency of stablecoins, PayPal is positioning itself at the forefront of the retail revolution, offering customers a more seamless and cost-effective way to transfer money across borders. This development is expected to have a positive impact on economic growth and prosperity in developing countries, where cross-border transactions play a crucial role in financial stability and development.