PayPal Acquires Xoom

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Posted 2 years ago

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PayPal Fined $25 Million For Bogus Credit SignupsPayPal is bolstering their entry into the international money transfer market by acquiring one of the largest companies in the industry.

On Tuesday, the mobile payments company announced a deal that would see them acquire Xoom Corporation for an estimated $890 million.

The deal gives PayPal a digital money transfer company that boasts of having 1.3 million active users who transferred and sent close to $7 billion in the last year.

PayPal’s president, Dan Schulman, said of the deal:  “Expanding into international money transfer and remittances aligns with our strategic vision to democratize the movement and management of money. 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. 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.”

Xoom is slated to operate as a separate service under PayPal, with the parent company taking full advantage of Xoom’s innovations in digital money lending.

In turn, Xoom will have the benefit of having access to a larger customer base that PayPal already has, which is approximately 68 million.

Christopher A. Smith

HR

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