"Now you're really opening up not only access-especially in places where they need it most- but also cross-border transfers and volume, where the pain is felt so high. Proponents of stablecoins have long touted the tokens' capacity to reduce fees for sending money cross-border, and PayPal's expansion aims to realize that potential by enabling users to keep funds in dollar equivalents."
"If a New Yorker sends $10 over PayPal to someone in Lima, for example, the Peruvian user has to pay a cross-border transfer fee and must take out the money in the Peruvian sol. Now, the ability to send and receive PYUSD enables users to keep funds in what are essentially U.S. dollars and reduce transfer fees."
"Some countries like Malawi don't let users keep money transfers in their PayPal wallets. Once one Malawian sends money over PayPal to another, that cash is immediately sent to the recipient's bank account. Opening up access to PYUSD lets users keep that money in their PayPal wallets, as opposed to only their bank accounts."
PayPal is significantly expanding PYUSD stablecoin availability to 70 countries, including Uganda, Colombia, Peru, and new markets across South America, Africa, and Asia. Previously limited to U.S. and U.K. users, the expansion allows international customers to hold, send, and receive PYUSD while earning rewards on holdings at rates matching U.S. offerings of 4% annually. This expansion addresses cross-border payment challenges by enabling users to maintain funds in dollar-equivalent stablecoins, reducing transfer fees and currency conversion costs. In countries like Peru and Malawi with restrictive currency policies, PYUSD provides alternatives to immediate bank transfers and native currency withdrawals, offering greater financial flexibility and wallet storage options.
Read at Fortune
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