Online digital payments giant PayPal is setting its course to acquire international money transfer service XOOM valued at $890 million with the goal of expanding its market reach even further.
PayPal revealed on Wednesday that the acquisition is relevant with the firm's effort to reach every corner of the digital payments arena. XOOM is the main provider in the United States of clients paying bills or sending money to friends and family members in other countries, according to The Sun Daily.
"Expanding into international money transfer and remittances aligns with our strategic vision to democratize the movement and management of money," declared Dan Schulman, PayPal's CEO.
John Kunze, Xoom chief executive said, "Becoming 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."
The deal will bolster PayPal's dominance in money sending services, providing Paypal's 165 million active consumers worldwide a vast range of options to receive and send money internationally using XOOM's services on their personal computers, tablets and smartphones.
CNET reported that PayPal is already offering its services in over 190 countries and regions. XOOM, based in San Francisco, will boost up PayPal's effort to advance its expansion into the countries where XOOM already runs its operation, specifically the major markets of Mexico, Philippines, China, India and Brazil.
XOOM is accessible across 37 countries including China, Australia, UK and Spain. It is also a tough competitor of Moneygram and Western Union.
Reuters revealed that XOOM will run as a distinct unit within PayPal after the finalization of the deal.
Rival companies however, like Apple Inc's (AAPL.O) Apple Pay and Stripe and Square, which is in demand with smaller businesses, gives PayPal a run for their money. Online trading foe Amazon.com Inc (AMZN.O) is also exploring in-store payments.
