FXC Intelligence publishes deep-dive report into Xoom ahead of reported sale

• PayPal is reportedly looking to sell its remittance arm Xoom.
• FXC Intelligence has today published a deep dive report into Xoom to assess where it stands in the market and its potential. 
• Although PayPal has largely de-prioritised the brand since the pandemic, Xoom continues to be a well-known brand in the industry.

PayPal is reportedly looking to sell one of the ten companies in its ‘family of brands’: remittance player Xoom. While PayPal hasn’t appeared to have prioritised investment in Xoom, the brand maintains strong positioning against competitors on a number of key metrics and could prove a key challenger as the remittance market undergoes ongoing digitisation, according to a new deep-dive report published today by FXC Intelligence.  

Ahead of Xoom’s possible sale, FXC Intelligence published a deep dive report looking at the history of Xoom, its position in the remittance market and its unleashed potential as a standalone player.

Covering Xoom’s time at PayPal, its position in the remittance market and potential as a standalone player, the report finds that while PayPal appears to have delivered on its promise to enable Xoom to expand into new markets and add capabilities to its platform, it has not appeared to focus on it as a standalone offering.
 

Since its 2015 acquisition, the number of countries Xoom sends money transfers to has risen from 39 to 163. Xoom has also added a number of capabilities to its platform, including send-to-card through a PayPal partnership with Visa Direct and domestic transfers to the US through partnerships with Walmart and Ria. 

However, PayPal has not mentioned Xoom once on an earnings call since 2020, and was only mentioned in two of the 150+ press releases PayPal sent between 2021 and 2022, compared to being mentioned in every press release the company sent in 2018. Xoom’s social media accounts have also not been updated since 2021.

PayPal has in recent years shifted its strategy to focus on ecommerce as well as increasing money transfer capabilities within its core brand. 

Daniel Webber, CEO and founder of FXC Intelligence said:

“Xoom may no longer be a key asset for PayPal if they chose to sell it, but could be an interesting opportunity for the right buyer. The brand remains a significant player in the remittance market. 

“We’ve looked at Xoom’s performance against a number of key metrics: app downloads and web traffic, customer ratings and social media presence and of course technical capabilities and pricing. 

“Potential buyers may decide to spend some money to bring new life to the brand, especially around marketing.” 

Further Information 

• To read the full report, click here.
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