New data suggests Xoom PYUSD-based transfers could cut transfer costs by 25%

• Paypal has announced that it will be pairing its stablecoin PYUSD with its remittance arm, Xoom, to offer customers a fee-free remittance service.
• FXC Intelligence analysis using its in-house pricing data suggests that this could reduce the cost of sending remittances via Xoom by 25% when compared to its traditional remittance transfers, based on Paypal’s current pricing strategy.
• This move has the potential to grow the adoption of PYUSD and, if handled correctly, relaunch Xoom, which until now has been largely deprioritised by the payments giant. 

FXC Intelligence has today published its analysis following the news that Paypal will be pairing its stablecoin PYUSD with its remittance arm Xoom, to offer customers a fee-free remittance service. Xoom will still charge an FX margin. 

Using its market-leading FX pricing data – which includes highly granular live and historic datasets, covering pricing and speeds across over 24,000 corridors globally – FXC Intelligence determined that a PYUSD-based transfer could reduce the cost of sending remittances via Xoom by 25% when compared to its traditional remittance transfers, based on Paypal’s current pricing strategy.

Xoom has traditionally priced at the higher end of the market, so providing a lower cost remittance service is likely to serve as a way of attracting price-sensitive customers to its service, whilst simultaneously growing adoption of PYUSD. 

Lucy Ingham, Editor-in-Chief and Head of Content at FXC Intelligence, said: 

“Paypal’s integration of PYUSD with Xoom marks a pivotal shift for the payments giant, who until recently had largely deprioritised the remittance service. Before this announcement, Xoom had all but disappeared from Paypal’s publicly communicated strategy and communications. If handled correctly, this development could relaunch the remittance player.

“This news raises the prominence of stablecoins as a potential technology for remittances. As it stands, it remains a fringe solution for remittances. FXC Intelligence will continue to monitor this space to ascertain stablecoin’s future use in the industry.”

To read the report in full, click here.