PayPal Acquires Money Transfer Provider, Xoom
PayPal has announced that it had struck a deal to buy Xoom (www.xoom.com), a digital money transfer provider, to broaden its services across the globe.
Excluding Xoom’s cash and short-term investments and including its debt, PayPal would pay about $890m (N177bn) for the company.
Xoom enables customers in the United States to send money to and pay bills for people around the world using their mobile phones, tablets, and computers. PayPal is set to be spun off from eBay so that it can attract more online merchants, which have shied away because they see eBay as a competitor.
“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,” PayPal President, Dan Schulman, said in a press release.
“Xoom’s presence in 37 countries – in particular, Mexico, India, the Philippines, China and Brazil will help us accelerate our expan-
sion in these important markets, he said.