PayPal acquiring digital money-transfer startup Xoom to facilitate international money transfers

PayPal announced on Wednesday that it is acquiring digital money transfer startup Xoom for $890 million with the aim of making the process of sending money abroad to your friends and family easier, safer and more affordable. Xoom has transferred more than $7 billion for its 1.3 million users customers over the course of the 12 months before April 2015. These transactions were primary made via mobile devices between family and friends. This service helps people in the United States send money to their friends and family for paying bills and supporting them in 37 countries around the world.

PayPal currently focuses on business money payments and hopes to expand its money transfer services into the growing global money transfer market. Acquiring Xoom will allow PayPal to offer more services to its global customer base and help them expand in key countries such as Mexico, India, the Philippines, China and Brazil. PayPal currently has 68 million active users and hopes to continue growing by penetrating into those new markets.

PayPal expects the acquisition to be made by the end of the fourth quarter of 2015.

Source: PayPal

Via: Engadget

Come comment on this article: PayPal acquiring digital money-transfer startup Xoom to facilitate international money transfers