Finally, the PayPal has completed the process of acquisition of Xoom. On July 1, 2015, it was announced by PayPal that it will acquire the Xoom Corporation by the end of this year and just three days before it has fulfilled its announcement. As we know that Xoom is among the largest digital money transfer services of the world and it is providing its services from the US to 33 countries of the world. Among these countries, Pakistan is also listed in the list. After the acquisition of Xoom by PayPal, there are huge chances that PayPal will offer its services for Pakistan as well, as the market for Pakistan has been already set by the Xoom.
If PayPal continues the services of Xoom that it was offering to Pakistani customers then the customers from Pakistan will enjoy the services of getting money in Pakistan from abroad in their bank accounts. Previously Xoom was allowing to send money from the US in 24 banks of Pakistan and major one of the them are MCB, Meezan, Bank Alfalah, Al Habib, HBL, NIB, Bank Islami, Bank of Punjab, Silk Bank, UBL, Faysal Bank and almost many others operating in Pakistan.
The transaction fee set by Xoom was $4.99 and the transactions above $1000 were entirely free.
According to analyst Andrew Jeffery: “If PayPal closes the transaction as planned, PayPal will suddenly have the best remittance franchise that works globally, as well as the best risk-management technology in the industry for working with banks’ automatic clearinghouses.”
Xoom is providing its money transfer services, mobile reload, and bill pay services from the US to 33 countries of the world in which China, Pakistan, India, Mexico, Philippines, Australia, Canada, Spain, and the UK are the most prominent.
PayPal is also an American money transfer company and Xoom is also offering its services from the US to other countries so it will be easy for the PayPal to expand its services in the countries already covered by the Xoom. Bloggers, online retailers, freelancers and other professional doing any kind of online trading and business in Pakistan can expect the arrival of PayPal in Pakistan.
PayPal has acquired the Xoom Corporation by spending $25 a share in cash or about $1.09 billion. The deal that was expected to be closed in the last quarter of the running years was closed just three days before. PayPal has already acquired the Braintree, Venmo and now the acquisition of Xoom Corporation will further strengthen the international business of PayPal. By this acquisition, PayPal will get an access to the 1.3 million active users of Xoom in the US that sent annually $7 billion in 33 countries of the world. The total numbers of countries are likely to reach 37 by the start of the year 2016.
PayPal and Xoom Corporation both are well-positioned digital money transferring services in the world that are best known for money management and money movement. By acquiring the Xoom, PayPal is planning to access to more people to send and access their money.