![]() In March it bought mobile payment platform Paydient to expand its reach to off-line retailers, along with Israeli cyber security startup CyActive in order to create its own security hub in that country. This is PayPal's third acquisition this year. Once the acquisition closed, which is expected to happen in the fourth quarter of 2015, Xoom will operate as a separate service within PayPal. In fact, since 2010, there have been 87 total exits in the payments space, and only seven of them were IPOs, including Qiwi, which raised $884 million. Xoom moves your money fast, and keeps your security a top priority. Overall, 2014 saw 22 exits, only one of which was an IPO. It was also one of the rare companies be publically traded in this space. ![]() That is much higher than the typical three or four, sometimes five, that the space has been seeing since 2010. In the fourth quarter of 2014, there were a total of 11 exits, followed by another eight in the first quarter of 2015. Xoom is just the latest exit in the payments space, which has seen a spike in the last two quarters. Prior to that it had raised a total of $78 million in outside investment from firms that included Sequoia Capital, New Enterprise Associates, SVB Capital, and Fidelity Ventures. Xoom, which was founded in 2001 by Kevin Hartz, who has since gone on to found Eventbrite, went public in 2013, raising $509 million. "Xoom’s compelling and reliable technology platform and consumer experience are coupled with its excellent customer service." "Xoom’s proprietary and fast 'funds-out' network enables PayPal to enter this growing marketplace with a leading technology solution with strong presence in key international markets," the company wrote. Now the company can offer Xoom's technology to its 68 million U.S. Xoom has more than 1.3 million active customers, who sent approximately $7 billion in the last year.īeyond Xoom's geographic advantages, PayPal is buying the service for a variety of other reasons as well, most especially its focus on transfers between individuals, which has so far not been PayPal's main focus. The company currently has a presence in 37 countries, in particular, Mexico, India, the Philippines, China and Brazil, all markets that PayPal made clear it is looking to expand to. ![]() The San Francisco-based Xoom allows consumers to send money, pay bills and send mobile reloads to family and friends around the world by using their mobile phone, tablet or computer. The price represents a premium of 32% over Xoom’s three-month volume-weighted average price. The deal to buy the publically traded company was priced at $25 per share in cash, or approximately $890 million enterprise value. PayPal announced on Wednesday that it has agree to acquire digital money transfer provider Xoom. ![]() You can add another notch to the growing list of payment startups that are exiting this year. There are about 3058 locations in Nigeria where you can send money to from the convenience of your Smartphone or laptop.The price of the acquisition was $25 a share, or $890 million.When money is sent through Xoom, it is received in cash by banks and various other businesses depending on the recipient’s location.But they are looking to expand outside North America and Europe. Although xoom and Paypal do not seem to have a specific continental strategy.It is a cheaper money alternative as Transferwise and MoneyGram charge 9 euros and 3.99 euros respectively for the same amount. The transfer company fee is about 1.49 euros(or 0.3%) to send 500 euros from France to Morocco.It can be delivered directly to their door or their phone in the form of mobile credit (this is only available in 11 countries). With their partnerships with Ria Money Transfer and African banks, Xoom allows people to send money online to 150,000 withdrawal points in Africa or to transfer funds directly to bank accounts which are available in Egypt, Morocco, Nigeria, Rwanda, South Africa and Uganda.
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