Posted 07/02/2015 at 8:58 AM
Posted 2 years ago
PayPal 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.