PayPal Acquires Xoom and its 1.5 Million Active Customers
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.”