PayPal looks to big international expansion for Xoom
Online payments giant PayPal has undertaken a spate of acquisitions in recent years, pushing for further dominance in the space. But before it was snapping up smaller companies like iZettle and Hyperwallet, it bought Xoom back in 2015. Xoom is an international money transfer app, and PayPal has big goals for the little platform, expanding it to 32 countries across Europe.
PayPal’s share price has appreciated by 42% so far this year
Source: Yahoo Finance
With the addition of a new set of European countries, including Austria, France, Italy, Spain and Portugal, Xoom will now be available in 130 markets around the world. This is a huge opportunity for PayPal. The global remittance market hit $689 billion last year, up from $633 billion in 2017. This year, remittances to low- and middle-income countries alone are forecast to reach $550 billion. Most of those funds will be provided by friends and families overseas – a clear opportunity for Xoom to capitalise on.
Xoom is making a play for this space by offering a better service than what’s currently on offer. Traditionally, these money movements have been slow, inefficient, and unreliable. Xoom, however, lets people send funds to bank accounts instantly around the world. Alternatively, funds can be picked up from secure locations or delivered right to customers’ doors.
Dan Schulman, PayPal’s CEO, commented in a press release over the expansion: “The way we move and manage our money has changed dramatically in the last few years. We have moved beyond the days when the only option for sending money abroad was to queue at a counter for hours. Even in 2019, it still takes too long to get money from European countries to a loved one in another country. We know how important these money transfers are in the lives of millions of people, and how crucial it is that money arrives swiftly so it can be used for things that matter. With Xoom, someone with a smartphone on a bus in London, Paris or Berlin can send money that can be accessed quickly in Mumbai, Lagos or Nairobi to pay for a family member’s medical emergency or urgent financial needs.”
Dominion holds PayPal in its Global Trends Ecommerce Fund.
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