PayPal Accelerates Remittance Ambitions by Acquiring Xoom
July 6, 2015
Last week, PayPal bolstered its position in the international money transfer space when it acquired Xoom for $890 million. While PayPal already offers remittances in other countries, the company said the San Francisco-based digital money transfer technology provider will enable faster expansion into important money transfer markets like Mexico, India, the Philippines, China and Brazil, where Xoom already operates.
“Expanding into international money transfer and remittances aligns with our strategic vision to democratize the movement and management of money,” Dan Schulman, President of PayPal, said. “Acquiring Xoom allows PayPal to offer a broader range of services to our global customer base, increase customer engagement and enter an important and growing adjacent marketplace.
In the 12 months ending March 31, 2015, 1.3 million active Xoom users sent $7 billion around the world using the service. The companies expect the deal to close in the fourth quarter of 2015.