PayPal has made a few significant
acquisitions since 2013, including purchasing Paydiant and Braintree. Now,
PayPal said it would buy digital money transfer provider Xoom Corp. for $890
Million as it muscles into a growing international remittance market and expand
in countries like Mexico, India and China ahead of a spinoff from eBay Inc.
Xoom, which has 1.3 Million
customers and a presence in 37 countries, allow users to transfer money via
desktop, mobile phones and tablets. The acquisition would allow Xoom to expand
into new markets with less execution risk. Xoom will operate as a separate
service within PayPal after the completion of the deal.
PayPal faces increasing competition
from rivals like Stripe and Square, which is popular with smaller businesses
and Apple Inc.’s Apple Pay. Online commerce foe Amazon Inc. is also beginning
to explore in store payments. The company is slated to separate from eBay this
month and list as an Independent company.
PayPal has been pushing hard into
mobile, where customers are more frequently making everyday purchases. The company
has touted its peer-to-peer money transferring division Venmo, used primarily
by smartphone touting millennial, and earlier this year bought app developer Paydiant.
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