An acquisition agreement to this effect was signed between the firms in July this year.
Under the agreed terms, PayPal paid $25 per share in cash for all outstanding shares of Xoom.
Xoom will speed up PayPal’s entrance into the international remittances market, while PayPal will help expand Xoom’s services across the globe.
With the addition of Xoom, PayPal has access to 1.5 million active US customers that sent approximately $7.1bn in the 12 months ended on 30 September 2015 to people in 40 countries such as Mexico, India, the Philippines, China and Brazil.
Over 97% of Xoom’s payment volume come from repeat users and 60% of its active users on mobile.
Xoom will operate as a separate service within PayPal.
The combined capabilities of PayPal and Xoom will allow more people to send and access money via more simpler, more secure and faster ways, the companies said.
The acquisition is expected to be slightly dilutive to PayPal’s non-GAAP earnings per share.
Founded in 1999, PayPal operates a technology platform that enables individuals and businesses to send and receive payments online.
The company operates as a subsidiary of PayPal Holdings.
Xoom offers money transfer services over the internet or through a mobile device on its website or through its mobile application, the Xoom App.
Image: PayPal’s corporate headquarters in San Jose, California. Photo: courtesy of Sagar Savla / Wikipedia.
