On Monday, the US money transfer company, PayPal, announced its plans of plunging into the European market. PayPal’s Europe expansion project, comes a year after it enters the Canadian market. It has rebranded its international money transfers service for Europe, named it Xoom. Xoom would be launched in 32 European countries including Britain. It would help its customers in making international transfers to over 130 nations including India, Pakistan, Nigeria, Kenya, Poland, Philippines and China.
The company said “the service will benefit millions,” including over nine million in UK and many more across the continent.
The company said that enrolling into European market would proved it access to the global remittances industry worth $689 billion (£550 billion). As per the data, global money transfer is a huge industry and British alone undertakes over $26 billion in remittances overseas every year, to support their families living in other countries.
Dan Schulman, PayPal’s CEO and President, said: “The way we move and manage our money has changed dramatically in the last few years. We have moved beyond the days when the only option for sending money abroad was to queue at a counter for hours. With Xoom, someone with a smartphone on a bus in London, Paris or Berlin can send money that can be accessed quickly in Mumbai, Lagos or Nairobi.”
Julian King, general manager of Xoom, told reporters at the launch, “Overall, PayPal’s Xoom business – and PayPal itself – has seen a long-term secular trend in the digitization and now mobilization of the management and movement of money. In the specific case of the Xoom services, we saw that it was a market segment that was materially underserved, for whom there had not been appropriate, meaningful innovation.”
The company is promoting both digitalisation of money and retaining easy cash delivery facility. King said that PayPal provides a range of services depending on the country receiving the money. Users can either deposit directly into a bank account, or send cash for pick-up or have cash delivered directly to recipients’ address. The customers could make the transfer either through Xoom’s standalone mobile app or through PayPal application. Keeping in mind convenience of the users, about 80 percent of the company’s transactions can be carried out over a mobile platform.
Xoom would collaborate with prominent banks and finance firms to facilitate smooth transfer of funds. With it, users would b able to transfer up to 8,800 pounds in one go.