Xoom lets you ditch the fees! Send money abroad using your fancy stablecoin (PYUSD) for potentially cheaper transfers. Is crypto the future of international payments?
 |
| Xoom integrates PYUSD stablecoin for money transfers! Maybe, this is the future of sending money internationally. |
San Jose, California:
Xoom, PayPal's international money transfer service, is letting U.S. users tap their fancy stablecoin holdings (PYUSD) to send money abroad. This could potentially mean cheaper transfers, but there's some jargon to navigate.
Big Fees, Small Transfers? Not Anymore (Hopefully)
Sending a couple hundred bucks overseas can feel like a rip-off thanks to hefty fees. The World Bank says the average cost of sending $200 globally is over 6% – yikes. But Xoom's new feature might be a game-changer for U.S. users.
Introducing PYUSD: Your Stablecoin Savior (Potentially)
Here's the deal: Xoom now lets you use your PayPal USD (PYUSD) stablecoin balance to fund money transfers. Stablecoins are cryptocurrencies pegged to a real-world asset, in this case, the good ol' US dollar. This supposedly means your PYUSD stays nice and stable, unlike Bitcoin's wild price swings.
The big perk? Xoom waives transaction fees for transfers funded with PYUSD. So, if you're already dabbling in crypto, this could be a way to save some cash when sending money internationally.
How it Works (Without Getting Too Techy)
Using PYUSD with Xoom is pretty straightforward. If you have enough PYUSD chillin' in your linked PayPal Cryptocurrency Hub, you can choose it as the funding source when sending money. Xoom then converts your PYUSD to USD behind the scenes (no extra crypto fees involved), and your recipient gets their money in the local currency you pick. Easy peasy.
Is This Actually the Future of Money Transfers? Maybe
PayPal says this move is all about making crypto more accessible and offering a potentially cheaper way to send money internationally. It's a win-win, right? Well, there are a few things to keep in mind:
Not Everyone Has Stablecoins: Unless you're already into crypto, this might not be super relevant.
Beware the Spread: Transactions not done in USD might still incur a currency conversion spread (basically a hidden fee).
Location, Location, Location: PYUSD isn't available everywhere (looking at you, Hawaii).
The Bottom Line
Xoom's PYUSD integration is an interesting experiment in using crypto for real-world transactions. Whether it becomes the go-to for sending money abroad remains to be seen. But hey, if you're a crypto enthusiast looking to save a few bucks on your next international transfer, it's worth checking out. Just make sure you understand the crypto jargon before diving in.