Paypal can offer more money transfer services with this acquisition.
PayPal’s acquisition of Xoom will help broaden its consumer base so you can make international money transfers easier, more efficiently, and to a wider range of users. You can now send money almost instantly, and reload phone credit for your loved ones.
Xoom has helped expand PayPal’s global reach and they are working to expand its services and grow faster. It operates separately and lets you send money, reload phones, and pay bills using Xoom’s website and mobile app. In contrast to Paypal, which only lets you send money.
Dan Schulman, the president of PayPal, said acquiring Xoom allows PayPal to offer a broader range of services to its global customers.
“Xoom’s presence in 37 countries – in particular, Mexico, India, the Philippines, China and Brazil – will help us accelerate our expansion in these important markets,” he added.
What are the benefits of PayPal acquiring Xoom?
Here is a list of the benefits of the acquisition:
- It increases PayPal’s offering to 68 million active users by cross selling Xoom’s services
- PayPal can now send money in real time using Xoom’s fast “funds out” network
- Xoom’s portfolio can now expand by using PayPal’s larger international network
- PayPal can now utilize Xoom’s reliable platform with excellent customer service
Financial highlights of the acquisition
The executive officers and directors of Xoom, holders of approximately 18% of Xoom’s outstanding shares, voted in favor of the transaction.
Background about PayPal and Xoom
PayPal was founded in 1998 and continues to be a frontrunner for digital payments. It processes almost 12.5 million payments per day. PayPal gives people better ways to connect their money to other people and help send money without sharing financial information.
Xoom is an international money transfer service that lets you send money overseas, pay bills, and reload phone credit to loved ones around the world. It has about 1.5 million active customers who have $7.1 billion around the world.