If anyone doubted PayPal’s intention to move beyond its retail payments and merchant services roots and enable the seamless management and movement of money for consumers around the world, those doubts were quashed yesterday. Cross-selling Xoom’s capabilities will expand the set of offerings that PayPal’s existing user base in the U.S. can leverage, not to mention fast track its ability to enable global money transfer in attractive “receive” markets such as Mexico, India, the Philippines, China and Brazil. The acquisition could also help both companies create the scale and integrated product set that supports the development of new business models for how money is moved digitally between consumers, businesses and merchants.
If anyone doubted PayPal’s intention to move beyond its retail payments and merchant services roots and enable the seamless management and movement of money for consumers around the world, those doubts were quashed yesterday (July 1). PayPal announced that it will acquire international money transfer provider, Xoom, for $890 million in an all cash deal. Xoom’s “anytime, anywhere” money transfer platform enables U.S. consumers to send money to friends and family in 37 different “receive” countries and pay bills via mobile phones, tablets and computers. Xoom’s proprietary “funds-out” network will allow PayPal to build out a key part of its consumer value proposition — digital money transfer and management. PayPal currently has 68 million active users in the U.S.
http://www.pymnts.com/news/2015/xoom-acquisition-shows-pypl-strategy/#.VZpDX1wQIVd
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