PayPal is taking a big step forward in the world of digital payments by integrating its own stablecoin, PayPal USD (PYUSD), into Xoom’s international money transfer services.

This integration allows PayPal users to send money across borders using (PYUSD) as a funding method, enabling faster and cheaper transactions compared to traditional fiat methods.

Furthermore, the stablecoin’s blockchain-based infrastructure will streamline cross-border payments by reducing transaction fees and speeding up the settlement process, which has been a challenge with traditional banking systems.

According to a blog post by PayPal, the first partners to benefit from this integration will be "Cebuana Lhuillier" and "Yellow Card".

Cebuana Lhuillier, the largest provider of micro-financial services in the Philippines, has been helping Filipinos living abroad send money home for years. With over 3,500 branches and 25,000 partner locations across the country, Cebuana Lhuillier plays a major role in making financial services accessible to many Filipinos.

On the other hand, Yellow Card, a leading fintech company in Africa, will also use (PYUSD) to simplify the process of sending money across the continent, making transfers quicker and more affordable for millions of people.

“Cross-border transactions are crucial for supporting economic growth in developing countries, and by using PYUSD, we can make these transfers more efficient,” said José Fernandez da Ponte, PayPal’s Senior Vice President of Blockchain, Cryptocurrency, and Digital Currencies. “This partnership helps bring the benefits of blockchain technology and digital payments to more people around the world.” he added.

This collaboration builds on PayPal’s earlier move to offer U.S.-based Xoom users the ability to fund money transfers using (PYUSD) with no transaction fees, marking the first step toward integrating stablecoins into its global services.

While the PYUSD settlement feature won’t be available in NewYork State at launch, PayPal plans to gradually expand its availability, bringing the benefits of stablecoins to an even wider audience.