Unveiling an in-depth analysis on Xoom prior to rumored sale negotiations
In the world of digital payments, PayPal has been making significant strides in expanding its ecommerce capabilities and enhancing money transfer services within its core brand. However, one of its key assets, Xoom, a remittance service acquired in 2015, has been the subject of recent speculation.
Xoom, a well-known brand in the remittance industry, currently holds a notable but moderate market position. Initially, Xoom benefited from PayPal's investment, but it seems to have lost some focus during the pandemic, suggesting operational challenges.
Within the U.S., Xoom is used by about 12% of overseas money senders, placing it behind PayPal’s overall international transfers platform (used by 52% of senders) and traditional competitors like Western Union (28%) and MoneyGram (15%). Yet, this solid presence is a testament to Xoom's enduring relevance.
PayPal's broader remittance and digital payment ecosystem, including Xoom, benefits from its large scale—with 467 million users—and innovations like blockchain integration to reduce costs and speed cross-border transactions. The global remittance market is growing robustly, reaching $188.93 billion in 2025 and expected to nearly double by 2030.
Although Xoom's direct market share may be modest, it remains a strategically important asset within PayPal’s comprehensive payment offering. This integration positions Xoom to remain competitive, even as PayPal reportedly considers selling it.
The performance of Xoom has been analysed against various key metrics, including app downloads, web traffic, customer ratings, technical capabilities, and pricing. However, it's worth noting that the analysis did not include any information about the lack of mentions of Xoom in PayPal's earnings calls since 2020 or in press releases between 2021 and 2022. Additionally, Xoom's social media accounts have not been updated since 2021.
Potential buyers may consider investing in marketing to revitalise the Xoom brand. The analysis also did not include any information about Xoom's partnerships with Visa Direct, Walmart, and Ria, which add capabilities to its platform. Xoom's expansion to send money transfers to 163 countries was also not mentioned in the analysis.
In conclusion, Xoom holds a meaningful but not leading share in the large, fast-growing remittance market. It is part of PayPal’s broader payment ecosystem success but experienced some operational challenges recently, which may impact its valuation amidst the contemplated sale. The future of Xoom remains uncertain, but its strategic importance within PayPal's comprehensive payment offering suggests it will continue to play a significant role in the remittance market.
Financing the revitalization of Xoom's brand could potentially bring improvements to its market position within the remittance business. Given Xoom's strategic importance to PayPal's comprehensive payment offering, any changes in ownership could significantly impact its future within the technological landscape of digital payments.
