Menu
PayPal to acquire money transfer service Xoom for $US890 million

PayPal to acquire money transfer service Xoom for $US890 million

The deal comes as PayPal prepares to split itself off from parent company eBay

PayPal President and incoming CEO Dan Schulman, speaking during an event in San Francisco on May 21, 2015.

PayPal President and incoming CEO Dan Schulman, speaking during an event in San Francisco on May 21, 2015.

PayPal is acquiring Xoom, an international money transfer service, in a deal that lets PayPal break into a new market worth an estimated $US600 billion a year, the companies said.

PayPal is paying $US25 per share in cash for Xoom, valuing the deal at $890 million, the companies said.

Xoom, founded in 2001, lets U.S. customers send money to others and pay bills in 37 countries, including Mexico, Brazil and India. Users can track their transactions with text updates, email notifications and online access from desktops and mobile devices.

PayPal offers peer-to-peer payments, but it's also known for its merchant payment service and as a check-out option when shopping online. Acquiring Xoom will let PayPal offer international money transfers to its 68 million US customers.

The deal will also let Xoom broaden the number of available markets for its customers' payments, through PayPal's global services.

Xoom will continue to operate as a separate service within PayPal when the transaction closes, which is expected in the fourth quarter of the year.

The deal comes as PayPal prepares to split itself from parent company eBay, to become an independent publicly traded company. PayPal is set to trade on the Nasdaq under "PYPL" on July 20.

Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuesInternet-based applications and servicese-commercepaypalXoominternetMergers and acquisitions

Slideshows

Top 50 defining moments of the New Zealand channel in 2016

Top 50 defining moments of the New Zealand channel in 2016

Reseller News looks back on a tumultuous 12 months for the New Zealand channel, assessing the fallout from a year of sizeable industry change. Whether it be local or global mergers and acquisitions, distribution deals or job changes, the channel that started the year differs somewhat to the one set to finish it - Reseller News assesses the key moments that made 2016.​

Top 50 defining moments of the New Zealand channel in 2016
​Hewlett Packard Enterprise honours high achieving NZ channel

​Hewlett Packard Enterprise honours high achieving NZ channel

Hewlett Packard Enterprise honoured its top performing Kiwi partners at the second running of its HPE Partner Awards in New Zealand, held at a glitzy ceremony in Auckland. Recognising excellence across eight categories - from distributors to resellers - the tech giant celebrated its first year as a standalone company, following its official split from HP in 2015.

​Hewlett Packard Enterprise honours high achieving NZ channel
Nutanix treats channel partners to Christmas cruise

Nutanix treats channel partners to Christmas cruise

Nutanix recently took to the seas for a Christmas Cruise around Sydney Harbour with its Australia and New Zealand staff, customers and partners to celebrate a stellar year for the vendor. With the sun out, they were all smiles and mingled over drinks and food.

Nutanix treats channel partners to Christmas cruise
Show Comments