Xoom, a cross-border money transfer service owned by PayPal, has recently announced a new feature that allows users in the US to fund international transfers using PayPal USD (PYUSD), a stablecoin linked to the U.S dollar. This innovation aims to provide a more affordable alternative for international transactions, which typically cost around 6% on average.

PayPal is offering this service free of charge for qualified transactions to over 160 countries, making it an attractive option for those looking to save on transaction fees. This move is timely, as more people are seeking cost-effective ways to send money abroad.

Ripple, a leading provider of blockchain solutions for global payments, has also recognized the potential of the international money transfer industry. In a bid to capitalize on its growth, Ripple partnered with Onafriq to facilitate cross-border payments across the GCC, Africa, the United Kingdom, and Australia.

In line with this trend, PayPal's stablecoin issuer, Paxos, recently formed a strategic alliance with Chainlink, a blockchain provider of market data for PayPal USD. This partnership aims to accelerate the adoption of PayPal USD for on-chain transactions, further solidifying its position in the digital payment space.

PayPal's Senior Vice President of the Blockchain, Cryptocurrency, and Digital Currency Group, Jose Fernandez da Ponte, stated that the goal of creating PayPal USD was to ensure value stability and its usability in payments. Since its release in August 2023, the USD-pegged stablecoin has been gaining traction as a reliable payment method. With this new feature, Xoom is poised to strengthen its position in the digital payment space and promote the use of digital currencies for transactions.