PayPal Plans To Acquire Xoom

Development comes at a price, but for companies like PayPal, that price tag is a small, small sacrifice.

According to The New York Times, PayPal will buy Xoom for a whooping USD 890 million. Which is absolutely fantastic news for Xoom; their debts will be paid, and they’ll gain access to the vast experience of one of the biggest online payment platforms.

However, PayPal will also get perks with its soon-to-be purchase: a very large stake in the Digital Money Transfer business that has become more and more popular, just like mobile casino gambling. Companies like the well-known Western Union should watch their backs in this digital age we live, that’s for sure.

60% of Xoom users use their phone

People who use Xoom tend to send money back home to India, the Philippines and Latin America, reported The New York Times. Since Xoom makes money wires so simple, it’s fan base is quickly growing. Just imagine how PayPal’s existing relationships with banks and its knowledge will help Xoom expand!

Just as mobile betting sites are becoming more popular, so are money transfers via smart phones. The CEO of Xoom, Mr. Kunze told The New York Times that more than half of Xoom’s current users, 60% of people prefer to send money using their app. That’s a statistic that cannot be ignored.