Today PayPal announced it will be enabling disbursement partners to use PayPal USD (PYUSD) to settle cross-border money transfers made with Xoom. Cebuana Lhuillier and Yellow Card will be the first Xoom disbursement partners to use PYUSD to settle cross-border money transfers, allowing them to leverage the cost and speed advantages of blockchain technology.
These forthcoming integrations will help drive financial inclusion by providing more widespread access to digital financial solutions across Asia-Pacific and Africa. In addition, PayPal will be able to conduct cross-border settlement transactions without being restricted by traditional banking hours.
“Cross-border transactions are an important driver for economic growth and prosperity in developing countries,” said Jose Fernandez da Ponte, Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies, PayPal. “With this step, Xoom and its partners, like Cebuana Lhuillier and Yellow Card, will be able to leverage PayPal’s payment technologies and the blockchain to further enable seamless money transfers across borders.”
Cebuana Lhuillier, the largest micro-financial services provider in the Philippines, boasts a robust network that enables Filipinos worldwide to send money back home to its 3,500 branches and 25,000 partner agent locations across the country. For the past 18 years, Cebuana Lhuillier has partnered with PayPal to facilitate money disbursements to the Philippines.
“PayPal’s payment services, our extensive rails with PDAX and Philippine banks, and our vast network of physical touchpoints enable us to deliver to last mile areas that are in need of support,” said Jean Henri Lhuillier, President and CEO of Cebuana Lhuillier. “With this upcoming collaboration, we’ll continue to drive financial inclusion and help more Filipinos.”
PayPal has also extended its partnership with Yellow Card, the largest and first licensed stablecoin on/off ramp on the African continent. This follows last year’s integration enabling Yellow Card to become the first fintech in Africa to list PYUSD.
“We are thrilled to partner with Xoom to support money transfers made by PayPal customers across the African continent and rising world. PayPal understands that stablecoins like PYUSD are changing the payments landscape, and by integrating our technology, they will be able to move money in the most effective way possible thanks to our stablecoin and payments infrastructure,” said Chris Maurice, CEO and Co-Founder of Yellow Card.
Xoom will use PYUSD to settle cross-border money transfers made by PayPal customers via Yellow Card’s stablecoin-based payment rails, helping to optimize cross-border transactions and make them quicker to process and less costly. In addition, Yellow Card’s payout capabilities will soon enable PayPal customers to send funds to friends and family across Africa, with money deposited in their local African bank or mobile money accounts.
This builds on PayPal’s announcement in April that it was giving its Xoom users in the U.S. the ability to fund fiat money transfers to friends and family abroad using PYUSD with no transaction fees. A pioneer in digital remittances, Xoom, a PayPal service, is a fast and easy way to send money, pay bills, and reload phones for friends and family in approximately 160 countries globally. With Xoom, customers can access a fast and reliable way to send money by simply downloading the Xoom or PayPal mobile app or visiting Xoom.com or PayPal.com.
At launch, settlement functionality will not be available for distribution partners in New York State.
About PYUSD
PayPal USD is issued by Paxos Trust Company, a fully chartered limited purpose trust company. Paxos and its products – including expansion to new blockchains – are licensed to engage in Virtual Currency Business Activity by the New York State Department of Financial Services. Reserves for PayPal USD are fully backed by U.S. dollar deposits, U.S. Treasuries and similar cash equivalents, and PayPal USD can be bought or sold through PayPal and Venmo at a rate of $1.00 per PayPal USD.
Issuance and custody of PayPal USD is performed by Paxos Trust Company, LLC. Learn more in PayPal’s Cryptocurrency Terms, and in the Paxos Terms that also apply to PYUSD.
About PayPal
PayPal has been revolutionizing commerce globally for more than 25 years. The company creates innovative experiences that make moving money, selling, and shopping simple, personalized, and secure. PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy.
