Xoom Corporation

About Xoom Corporation

Xoom Corporation operates as a digital money transfer service, facilitating cross-border payments for consumers. The company was established in 2001 by Kevin Hartz and James Joaquin. Hartz, with a background that includes co-founding Eventbrite and investing in startups like PayPal and Pinterest, brought significant entrepreneurial and investment acumen to the venture. Joaquin's experience in technology and venture capital complemented this, creating a strong founding team to tackle the complexities of international remittances.

The firm's primary service enables individuals in countries like the United States and Canada to send money, pay bills, and reload mobile phones for family and friends in over 160 countries across Africa, the Americas, Asia Pacific, and Europe. This service is positioned as a secure, rapid, and cost-effective alternative to traditional brick-and-mortar money transfer operators. The business model centers on charging a transaction fee, which varies based on the amount sent, the payment method, the destination country, and the currency. Additional revenue is generated from the spread on foreign currency exchange rates. Xoom's client base consists of individuals, often immigrants, who need a reliable method to support their families in their home countries.

The platform is accessible via its website and mobile applications, designed for ease of use. A key feature is the speed of transfers, with many transactions completed in minutes, subject to partner processing hours and system availability. Users can fund transactions using bank accounts, debit cards, or credit cards. The company provides transparency through upfront disclosure of fees and exchange rates, allowing customers to see the exact amount that will be received. A significant milestone in Xoom's history was its initial public offering in February 2013, which solidified its position in the financial technology market. Subsequently, recognizing the strategic fit within its own digital payment ecosystem, PayPal Holdings, Inc. acquired Xoom in November 2015 for approximately $890 million. This acquisition integrated Xoom into PayPal's broader suite of services, expanding its global reach and customer base.