Its founding CEO was Kevin Hartz, who went on to co-found the online ticketing company Eventbrite, where he remains CEO.Īs a public company, Xoom appeared to be ticking along at a steady clip, though it hit a bump in the road earlier this year when it announced $30.8 million in fourth-quarter costs related to the suspected impersonation of an employee, along with fraudulent requests that were made to its finance department. customers, will have better reach into the former.īefore going public, now 14-year-old Xoom raised $78 million in outside funding from a long list of investors, including Glynn Capital Management, Sequoia Capital, New Enterprise Associates, and Fidelity Ventures. Now PayPal, which claims 68 million active U.S. PayPal’s transactions mostly center on commercial payments. ![]() Put in plain English: Xoom’s core business centers on money transfers for friends and family remittances. Xoom’s presence in 37 countries – in particular, Mexico, India, the Philippines, China and Brazil – will help us accelerate our expansion in these important markets.” The price represents a 32 percent premium over Xoom’s three-month volume-weighted average price.Īs stated in a PayPal-issued release about the tie-up, “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. In 2018, the firm launched its cross-border payments pilot, with significant time and cost savings reported by institutions.Xoom, a San Francisco-based online money transfer technology and services company that went public in 2013, is being acquired by PayPal for $25 per share in cash or $890 million. Similar to Bitcoin (BTC), which creates a borderless economy, Ripple’s focus was to give institutions a real-time settlement system. ![]() Within the crypto sphere, cross-border payments for businesses are sometimes associated with Ripple, the firm behind the XRP (XRP) token, which is embroiled in an ongoing legal battle. In 2022, the company started allowing native transfers of digital assets from PayPal to external wallets and exchanges. In 2021, the financial services firm enabled crypto trading for customers in the United Kingdom. Besides enhancing product offerings in cross-border transactions, the company has also embraced cryptocurrency. Meanwhile, PayPal has been increasingly covering all fronts regarding financial transactions. The executive believes that the new solution will be helpful in this regard. Visa Direct North America head, Yanilsa Gonzalez-Ore, recognized an increased demand for “digital solutions that help remove barriers” for people looking to send money globally. The executive believes that the newly-expanded service will help users across the globe. Lee explained that many customers were sending money globally to their friends and family during those times and that this needed to be done quickly. Wei-Lin Lee, PayPal’s vice president of remittances, said that the new service could help people during winter and holidays. ![]() With the newly-launched function, users can access the funds within minutes, eliminating the need to wait for five business days, which is the average waiting time for wire transfers. The feature is available in 25 countries, including the Philippines, Sri Lanka, Thailand, Ukraine and Vietnam. In a recent announcement, PayPal mentioned that Xoom partnered with financial services firm Visa, allowing debit card holders to receive funds directly from Xoom. Financial technology firm PayPal’s international money transfer service, Xoom, has announced a new product that lets users in the United States send money directly to Visa debit card users.
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