What is Xoom?
What can Xoom do for you? You can use it to send money to 53 different countries around the world, as well as sending a reload to a loved one’s mobile phone in another country. As of mid-2016, Xoom even allows you to pay bills in the USA from another country, with payments going directly from the consumer through Xoom to utilities or telecom providers.
In October 2016, Xoom introduced a new “request” feature whereby customers in 29 countries can request that their loved ones living in the USA send them a mobile reload, transfer, or bill pay for a certain amount.
Xoom has a presence in 53 countries and has around 2 million customers as of end 2015. Getting Xoom on board has enabled PayPal to expand into new services and important markets such as China, Brazil, India, Mexico, and the Philippines.
PayPal doing well with Xoom on board
PayPal acquired Xoom for US $890 million (AU $1.16 billion) just before separating from eBay. PayPal’s first reported returns after separating as an independent from its parent company eBay in mid-2015 were lower than expected, with third quarter revenue rising 15% to $2.26 billion.
But when PayPal acquired their newest partner, international money transfer company Xoom, it definitely brought an extra boost in the second half of 2015. As of Q1 2016, PayPal’s total revenue was already up to $2.54 billion.
PayPal CEO and President Dan Schulman said, “Expanding into international money transfer and remittances aligns with our strategic vision to democratise the movement and management of money.”
On 28 October, PayPal tweeted:
— PayPal (@PayPal) October 28, 2015
CEO Schulman added that in Australia, PayPal is currently the #4 most popular brand. “And that brand is associated with trust and security. And that, that’s a really powerful asset for us, and we intend to live up to that brand trust that consumers have.”
According to financial analysts at BTIG, Xoom currently has an online presence about one sixth the size of competitor Western Union. Will they be able to compete on a global scale? We will have to wait and see.
Other ways to make international money transfers
Canstar regularly researches and rates international money transfers. We don’t currently give a rating for Xoom, but watch this space!
In 2016, we rated 19 providers of international money transfers, so that you can see which provide outstanding value for money. Compare your options on our website: