{"id":26305,"date":"2015-07-03T03:01:36","date_gmt":"2015-07-03T03:01:36","guid":{"rendered":"http:\/\/ci027cfe7a70062697"},"modified":"2015-07-03T03:01:36","modified_gmt":"2015-07-03T03:01:36","slug":"weeks-ebay-split-paypal-acquires-digital-payment-provider-xoom-1435874496","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/technical\/weeks-ebay-split-paypal-acquires-digital-payment-provider-xoom-1435874496","title":{"rendered":"Weeks Before the eBay Split, PayPal Acquires Digital Payment Provider Xoom"},"content":{"rendered":"
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Paypal announced<\/a> on Wednesday that it was acquiring San Francisco-based Xoom, a company that facilitates the digital transfer of money internationally, Forbes<\/em>reports<\/a>. The all-cash deal values Xoom at $890 million, or $25 a share.<\/p>\n

\u201cExpanding into international money transfer and remittances aligns with our strategic vision to democratize the movement and management of money,\u201d said PayPal President Dan Schulman.<\/p>\n

\u201cAcquiring 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,\u201d he said. \u201cXoom\u2019s presence in 37 countries \u2013 in particular, Mexico, India, the Philippines, China and Brazil \u2013 will help us accelerate our expansion in these important markets.\u201d<\/p>\n

Xoom is a digital money transfer provider that enables consumers to send money and pay bills for family and friends around the world in a secure, fast, and cost-effective way, using a mobile phone, tablet or computer. Founded in 2001 by PayPal investor Kevin Hartz and serial entrepreneur Alan Braverman, the company went public in 2013.<\/p>\n

\u201cBecoming part of PayPal represents an exciting new chapter for Xoom, which will help accelerate our time-to-market in unserved geographies and expand the ways we can innovate for customers,\u201d said Xoom President and CEO John Kunze. \u201cBeing part of a larger, global organization will help us deliver the best possible experience to our customers, while maximizing value for our shareholders.\u201d<\/p>\n

\u201cI\u2019m excited to announce that PayPal is ready to make another area of payments better for people around the world \u2013 international remittances,\u201d added Schulman in another post<\/a>. \u201cToday, this primarily cash-based system of sending money abroad can be time-consuming, insecure and expensive. We believe [the Xoom] acquisition will allow PayPal to quickly expand into the large and growing global money transfer market. Xoom has what we believe is the most advanced technology platform in this space with a majority of its transactions taking place on mobile devices.\u201d<\/p>\n

The announcement of the acquisition comes only a few weeks before PayPal\u2019s planned split with eBay<\/a>. The separation will allow the two companies to more effectively pursue distinct operating priorities and strategies and opportunities for long-term growth and profitability. In particular, PayPal\u2019s management will be able to focus exclusively on its payments business, and enjoy \u201cincreased flexibility to pursue new partnership and strategic opportunities that may have previously been unavailable for strategic or other reasons.\u201d<\/p>\n

It\u2019s interesting to speculate about how the Xoom acquisition might influence PayPal\u2019s improving<\/a> but still uncertain attitude toward Bitcoin, and worth noting that Xoom seems at least open to the digital crypto-currency. \u201cIf bitcoin could help us be more efficient, we\u2019d use it,\u201d said Kunze in a 2014 interview with PYMNTS<\/em> titled \u201cIs Bitcoin The Future of Money Transfer?<\/a>\u201d<\/p>\n

\u201cI think anyone that wants to move money from point A to point B has to deal with two very important challenges that, for bitcoin to succeed, players in that ecosystem must also solve in addition to still being efficient and not costly,\u201d he added. The two challenges are, according to him, defending against money-laundering threats, and not moving money that was sourced from or used for illegal purposes. \u201cUnless the bitcoin ecosystem self-regulates and gets consumer protection in place, and deals proactively with money-laundering risks, the regulators will start regulating them,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"

Paypal announced on Wednesday that it was acquiring San Francisco-based Xoom, a company that facilitates the digital transfer of money internationally, Forbesreports. The all-cash deal values Xoom at $890 million, or $25 a share. \u201cExpanding into international money transfer and remittances aligns with our strategic vision to democratize the movement and management of money,\u201d said PayPal President Dan […]<\/p>\n","protected":false},"author":3509,"featured_media":26306,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[1462,166],"class_list":["post-26305","post","type-post","status-publish","format-standard","has-post-thumbnail","category-technical","tag-acquisition","tag-paypal"],"author_data":{"id":3509,"name":"Giulio Prisco","nicename":"giulio-prisco","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/2d091b908741b627d89036dd43748bb5c5edcfe9f805501703e2c3af34dadfca?s=96&d=robohash&r=g"},"featured_image_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/weeks-before-the-ebay-split.jpg","_links":{"self":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/26305","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/users\/3509"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/comments?post=26305"}],"version-history":[{"count":0,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/26305\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media\/26306"}],"wp:attachment":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media?parent=26305"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/categories?post=26305"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/tags?post=26305"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}