The purchase will enable PayPal to tap into the lucrative market for remittances. Xoom’s online service lets people send money internationally, often via mobile phone, typically charging USD 5 to USD 10 depending on the size of the exchange, as well as pocketing the difference in the exchange rates it sets. Xoom customers can also pay bills using the service.
PayPal has been pushing hard into mobile, where customers are more frequently making everyday purchases. The company has touted its peer-to-peer money transferring division Venmo, used primarily by smartphone-touting millennials, and earlier this year bought app developer Paydiant.
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