PayPal Acquires Xoom and its 1.5 Million Active Customers

November 18, 2015, Written By Lynn Oldshue
SAN JOSE CA/USA - MARCH 1 2014: PayPal Corporate Headquarters Sign. PayPal is an international e-commerce business allowing payments and money transfers to be made through the Internet.

PayPal has officially acquired the digital payment service Xoom for $890 million. The company first announced the acquisition in July, but the process was just completed.

Xoom deals primarily with international money transfers, focusing in markets like Mexico, India, China, Brazil and the Philippines. PayPal plans to utilize Xoom’s platform to expand its global marketplace and give its 173 million active users even more opportunities to send money and pay bills online.

In addition to acquiring Xoom as a company, PayPal now has 1.5 million new active customers in the United States to add to its roster. Within the last year, more than $7.1 billion has been sent through Xoom to people in over 40 countries. Xoom users are particularly fans of mobile money transfers, with 60% of the active users working mostly from their mobile devices.

Even though PayPal will be cross-marketing its services with Xoom customers, Xoom will still operate as a separate company under PayPal’s umbrella. The digital service provider will be headed by John Kunze, who ran the company prior to the acquisition.

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

The information contained within this article was accurate as of November 18, 2015. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.