Unveiling an in-depth analysis of Xoom before its rumored sale hits the market.
PayPal's Remittance Arm, Xoom, Faces Uncertain Future
In a recent deep-dive report, it has been revealed that Xoom, the remittance arm of PayPal, has not been a standalone focus for the tech giant since 2020. Xoom, a well-known brand in the remittance industry, has been mentioned sparingly in press releases compared to previous years and has not been mentioned on any earnings calls since 2020.
The report analyses Xoom's performance using various metrics such as app downloads, web traffic, customer ratings, and social media presence. Despite its modest market share in the U.S. remittance space, Xoom remains a significant player in the remittance market, with about 12% of U.S. overseas money senders using the platform. This places it behind PayPal’s broader platform (52%) and Western Union (28%) but slightly ahead of competitors like Wise (11%).
Since its acquisition by PayPal in 2015, Xoom has expanded to send money transfers to 163 countries. It has added capabilities such as send-to-card through a partnership with Visa Direct and domestic transfers to the US through partnerships with Walmart and Ria.
The ongoing digitisation of the remittance market could make Xoom a key challenger, according to the deep-dive report. As digital money transfers gain share and offer lower fees than traditional methods, the remittance market is projected to grow to $342 billion by 2030 with a CAGR of 12.58%.
PayPal's recent shift in strategy to focus on ecommerce and increasing money transfer capabilities within its core brand may signal a change for Xoom. The tech giant is reportedly considering selling its remittance arm, and potential buyers may consider investing in marketing to revitalise the Xoom brand.
Daniel Webber, CEO and founder of the platform that prepared the deep-dive report, believes that if PayPal sells Xoom, it could be an interesting opportunity for the right buyer. However, the report does not mention any new information about Xoom not being a standalone focus for PayPal or any new information about Xoom's lack of updates on its social media accounts since 2021.
In summary, Xoom has a solid position as part of PayPal’s offerings in remittances, but its potential as an independent company depends on strategic decisions by PayPal. The growing remittance market and digital transfer trends create a favorable environment, but competition and integration within PayPal remain key factors.
| Aspect | Details | |------------------------|------------------------------------------------------| | Market Position | 12% usage among U.S. international senders, behind PayPal platform but competitive among remittance services[3].| | Acquisition and Focus | Acquired by PayPal in 2025 for $890M; lost some focus during the pandemic[2].| | Market Potential | Remittance market growing at ~12.6% CAGR to $342B by 2030, driven by digital adoption[1].| | PayPal Ecosystem Benefit| PayPal’s strong global payment network and mobile commerce volume (760B in 2025) can support Xoom’s growth[4][5].| | Standalone Outlook | No separate standalone presence or IPO plans indicated; growth tied to PayPal’s strategic priorities. |
- The ongoing business transformation at PayPal, with a focus on ecommerce and integrating more money transfer capabilities into its core brand, may impact the future of Xoom, the technology-driven remittance arm, as potential buyers consider investing in marketing to revamp the Xoom brand.
- Despite facing a modest market share in the United States remittance space, Xoom, a key player in the remittance market, continues to growth its footprint, having expanded to send money transfers to 163 countries, a testament to its strategic alignment with the growing technology landscape in the global finance sector.
