PayPal's Xoom signs deal with Euronet's Ria
PayPal’s Xoom service has signed a deal with Euronet Worldwide subsidiary Ria that could boost the company’s footprint in Eastern Europe and Africa, and increase its presence in the global remittance market. The deal will see Ria offer Xoom customers cash pickup services at “more than 150,000 of Ria’s international network locations.” This gives Xoom customers access to 355,000 global agents in 70% of countries around the world.
PayPal’s share price has risen by 23% so far this year
SOURCE: Yahoo Finance
Xoom’s vice president and general manager, Julian King, said: “Partnering with Ria allows us to grow our global footprint and significantly expand our services in the African diaspora and across Eastern Europe. With this expansion, Xoom now offers service to over 130 countries globally, including many countries that have limited access to digital remittance services.”
PayPal bought Xoom in 2015 for $890 million. That is increasingly looking like it was a smart move: not only are digital methods of sending money overseas roughly half as expensive as other ways, but the digital remittance market could be worth as much as $300 billion by 2021. That’s a big pie that PayPal will want as much of as possible.
The money transfer space is heating up, with a number of big players (like Walmart) taking an interest. PayPal is maneuvering itself into a prime position at the front of the pack. In addition to its deal with Ria, the company has recently closed a deal with Synchrony which will see them extend their co-branded consumer credit card program agreement, with Synchrony operating as the exclusive issuer of PayPal’s consumer financing program online in the U.S. through to 2028.
Dominion holds PayPal in its Global Trends Ecommerce Fund.
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