PayPal Acquires Xoom To Help Facilitate International Money Transfers
Apart from being used as a payment method on websites such as eBay, PayPal has also been used by users to transfer money to one another, like transferring money to a friend to pay for a meal, or parents transferring money to their children while they’re away at college. However to help themselves expand into a wider market, PayPal has announced that they have acquired Xoom.
For those unfamiliar with Xoom, they are a startup company that specializes in making money transfers in international markets. The company has boasted that in the past 12 months, they have facilitated a whopping $7 billion in transfers between customers all around the world, and no doubt this is a business that PayPal would definitely be very interested in.
Xoom is also currently playing host to about 1.3 million active customers in the US and has transferred money to 37 countries around the world. According to PayPal, “We believe this acquisition will allow PayPal to quickly expand into the large and growing global money transfer market. The acquisition aligns with our strategic vision to make the movement and management of money better for people, helping our customers find new and exciting ways to use PayPal, everyday.”
The company also believes that with this acquisition, it will allow them to expand faster into markets such as Mexico, India, Philippines, China, and Brazil. They are also expecting the acquisition to be finalized and closed in Q4 2015 assuming that there are no objections or irregularities.