PayPal, a popular company that is used by many to transfer money online has announced that they are going to buy Xoom for $890 million, or $25 per share. Xoom is also a well-known company that offers money transfer to 37 different countries around the world. The deal is expected to be closed in the fourth quarter of this year.
Personally I’ve been using PayPal for several years now to transfer my online earnings to my bank account and also to pay online transactions such as web hosting, domain renewals and etc. On the other hand, Xoom is also a familiar company to me because one of my friend receives money from abroad using this payment/money transfer method because of its reliable services as my friend told me, I’m not sure if the transaction fees are lower compared to other money transfer company.
I’m very sure if you are the owner of PayPal and you really want to expand your business then you will do the same thing, to acquire a money transfer business that is already established like Xoom.
Xoom have facilitated a whopping $7 billion in transfers between customers all around the world with 1.3 million active customers in the US.
According to PayPal, “We believe this acquisition will allow PayPal to quickly expand into the large and growing global money transfer market. The acquisition aligns with our strategic vision to make the movement and management of money better for people, helping our customers find new and exciting ways to use PayPal, everyday.”
To find more information about this news, visit this link.