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Millions of people and billions of dollars move across borders into emerging markets annually. Yet international transfers and treasury settlements are still weighed down by the high costs and inefficiencies of correspondent banking, leaving institutions exposed to FX friction and delayed clearing times.
By integrating Yellow Card's robust Payments API and fiat on/off-ramp infrastructure, Xoom (a PayPal service) is creating a new cross-border experience, one where global payments are settled instantly with PayPal USD (PYUSD) stablecoins and delivered seamlessly to local endpoints. Senders in the U.S. initiate transfers through Xoom as usual; on the backend, Yellow Card converts the PYUSD into local currency and delivers it directly to bank accounts or mobile money wallets, so payouts land faster and cheaper without Xoom having to build the corridor market-by-market.
How It Works
Initiate: Senders in the United States initiate a transfer through the Xoom app, just like any typical cross-border transaction.
Settle: Instead of routing funds through a slow, multi-day correspondent banking chain, Xoom settles the transaction with Yellow Card instantly using PYUSD.
Deliver: Recipients across emerging markets receive funds in real-time in their local currency, deposited directly into the local bank accounts or mobile money wallets they already use and trust.
Under the Hood
Behind the scenes, Yellow Card powers the fiat settlement and local payout infrastructure for these flows:
Stablecoin Settlement: Xoom transfers PYUSD to Yellow Card’s institutional-grade custodial infrastructure, entirely bypassing legacy financial rails.
Instant FX Conversion: Yellow Card’s API automatically receives the stablecoin and converts it into the required local fiat currency at highly competitive rates.
Last-Mile Payouts: Yellow Card calls upon its deep local integrations to instantly route the fiat funds to mobile money networks and banks. We abstract away the technical and regulatory complexity of connecting to dozens of fragmented, local payment rails across emerging markets.
Built to Scale
Thanks to Yellow Card’s infrastructure, Xoom successfully deployed a highly efficient stablecoin remittance corridor at scale. This impact is possible because:
Single Unified API: Yellow Card consolidated the fragmented emerging market payment stack into one provider, eliminating the need for Xoom to manage multiple local vendor integrations.
Deep Local Coverage: Direct connections to mobile money operators and banks mean funds reach the end-user faster, driving higher customer lifetime value (LTV) for the enterprise.
Regulatory Defensibility: Yellow Card operates with stringent compliance and regulatory licenses, with operations across 60 countries, de-risking the expansion roadmap for global financial institutions.
The Bigger Picture
Xoom’s deployment shows how stablecoins transform cross-border payments, reducing treasury costs, eliminating T+2 settlement delays, and unlocking access to global customers.
But the same foundation goes far beyond remittances. Yellow Card's stablecoin infrastructure lets banks, telcos, and PSPs run their treasury, liquidity, and digital asset operations on one rail:
Bank and settle globally: open USD, GBP, and Euro accounts in your business name, all on a single platform, to send, receive, and convert funds without a separate banking relationship in every market.
Ramp on and off: buy and sell USDT, USDC, PYUSD, and other stablecoins against 50+ major and local currencies.
Manage digital assets at scale: set up custodial and self-custody wallets, internally or for end users, across 30+ blockchains.
Launch a local stablecoin: mint, burn, and convert a custom, local currency stablecoin to and from fiat, on demand.
Yellow Card abstracts away the complexities of blockchain integration and emerging market compliance, so enterprises can focus on capturing market share and launching new revenue streams.
The Takeaway
Xoom's PYUSD corridor shows stablecoin settlement can handle PayPal-scale remittance volume, not just niche use cases. That matters because remittance corridors are usually the hardest to prove out: high transaction counts, thin margins, and zero tolerance for delay or lost value at the recipient's end.
As more corridors move onto this rail, the cost and speed gap with correspondent banking only widens. Yellow Card provides the infrastructure behind it, and we can help the next payments platform get there too.
Speak to someone on our team. Book a call today.
