The acquisition means Paypal can offer more money transfer services.
PayPal is an American company operating a worldwide online payments system. Online money transfers are electronic international money payments that replace the traditional paper methods like cheques and money orders.
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 also reload phone credit for your loved ones.
Xoom is now a member of the PayPal family. Xoom has helped expand PayPal’s global reach and they are working to expand its services and grow faster. Xoom operates separate to PayPal. Xoom lets you send money, reload phones and pay bills using Xoom’s website and mobile app. Whereas Paypal 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 PayPa's larger international network
- PayPal can now utilise Xoom's more 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 favour of the transaction.
Background about PayPal and Xoom
PayPal was founded in 1998 and continue 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, as well as reloading phone credit to loved ones around the world. It has about 1.3 million active customers who have $7 billion around the world.