PayPal has expanded the availability of its stablecoin PayPal USD (PYUSD) to simplify cross-border payments in Asian and African markets.
PayPal, the largest debit electronic payment system, reported that its financial partners will be able to use PYUSD for cross-border money transfers using the infrastructure of Xoom, a subsidiary of PayPal, which is an electronic money transfer provider.
The press release states that the initiative aims to expand access to digital financial solutions in African countries and the Asia-Pacific region, and provide the ability to conduct international transactions using PYUSD outside traditional banking hours. The first partners to gain access to process international payments using PYUSD are Cebuana Lhuillier and Yellow Card.
Cebuana Lhuillier is the largest provider of microfinance services in the Philippines.
Yellow Card is the first and largest licensed provider of stablecoin exchange services for fiat currencies in Africa.
Jose Fernandez da Ponte, Senior Vice President of PayPal for Blockchain, Cryptocurrencies, and Digital Currencies, noted in a press release that cross-border transactions are an important factor for economic growth and prosperity in developing countries. The partnership of local FinTech companies with PayPal will ensure the ability to make seamless money transfers across borders.
"At the local level, there is a need for local FinTech companies that can convert cryptocurrencies into what the user needs. The significance of local payment providers is that they are familiar to local residents, and the sender of funds does not have to worry about their conversion after receipt," commented Max Krupyshev, CEO of CryptoProcessing.com, on the importance of local financial solution providers in the Purpose Driven FinTech podcast.
Let us remind you that the payment system PayPal launched the dollar stablecoin PYUSD in September 2023. Later, in April of the current year, representatives of Xoom announced the launch of an international payment service for residents of the United States, except for the state of Hawaii, which allowed the possibility of sending funds with zero fees to 160 countries using PYUSD.
