Xoom offers money transfer services, primarily from one person to another, in many countries worldwide. Money is sent securely through a desktop and mobile site as well as a mobile app. Money sent by Xoom may be received in cash at banks and various other businesses depending on the recipient's location, as well as by deposit to bank accounts. Users pay for the service using funds paid by direct debit to their U.S. bank account, a credit card, or a debit card. The Xoom fee varies based on the method of payment. Payment by direct debit to a bank account is the least expensive, while the fee payments by a debit card or credit card are much higher and are based in part on the amount being sent. Xoom acknowledges that it also makes money on the currency exchange, but the exchange rates are favorable to many other alternatives. The service employs a variety of methods to assure the integrity of users' accounts as well as to prevent fraud and money laundering. These methods include identity verification and limits on the amounts that can be transferred on per day, per month, and per 180-day period. Generally speaking, these limits make it difficult or impossible to use Xoom for substantial payments. In addition, banks or businesses may impose their own limits on the amounts someone may receive in a given period of time.
Customers can use Xoom to pay electricity, telephone, gas, and more bills in select foreign countries. With the Xoom bank deposit service, consumers can send money directly to bank accounts in various countries, and the company also offers cash pickup services to select foreign countries as well. Some countries also offer home delivery services.
Third Party Certifications
Xoom is certified by TRUSTe as a licensee of the TRUSTe® Privacy Seal Program, is an accredited business of the Better Business Bureau, and operates its website using the verified by Verisign seal.
Funding
On September 28, 2007, Xoom closed a first E-series round of financing for $20 million. On March 25, 2010, Xoom closed an F-series round of financing for $33 million. The company went public on February 15, 2013.
Industry Reviews
In June 2010, Xoom was cited in a study by the Inter-American Dialogue of 79 remittance service providers as having the "highest consumer satisfaction ratings in transparency of the fee, transparency of the foreign exchange, and value". In March 2011, and in September 2012, Xoom was listed in the Wall Street Journal's annual "Next Big Thing List" list of the 50 most promising venture backed companies. In October 2012, in a follow up survey by the Inter-American Dialogue of 51 remittance service providers for the US to Latin America market, Xoom received the top score, using a variety of factors including countries served, fees, FX, network, and inclusiveness.
Acquisition by PayPal
On July 1, 2015, PayPal announced that it planned to acquire Xoom corporation. PayPal intended to spend $25 a share in cash to acquire the publicly traded Xoom, or about $1.09 billion. The deal closed in November 2015. The move strengthened PayPal's international business, giving it access to Xoom's 1.3 million active U.S. customers that sent about $7 billion in the 12 months ending on March 31, 2015 to people in 38 countries.
