PayPal turns to Walmart and Ria to deliver Xoom P2P in the U.S.
From its start four years ago as a PayPal service, the Xoom mobile money transfer network has positioned itself as an international P2P app that could rival traditional networks through its speed and ease of use.
Xoom has fared well in international markets, but PayPal is bringing the service into a domestic setting in the U.S. for the first time through a partnership with Walmart and Ria Money Transfer.
The new domestic money transfer service allows Americans to use Xoom online or through mobile devices to send money for cash pickup in minutes at any Walmart or Ria-owned stores in the U.S., or nearly 5,000 locations across the country.
PayPal acquired Xoom, a San Francisco-based P2P payment platform with 1.5 million subscribers, in 2015 with the intention of developing an international money transfer network.
The acquisition put PayPal in a position to expand its digital payments strategy and put the company in a position to grow its user database in a way it could quickly compete and potentially bypass some of the major providers that were not yet offering a mobile experience.
"Many of our customers in the U.S. already send money to loved ones in the country, and they usually prefer that the money is available right away," Julian King, Xoom's vice president and general manager, said in a Tuesday press release. "This rollout reinforces our commitment to make money transfers fast, easy and affordable for everyone, whether they are at home or on-the-go."
Xoom reports its services potentially benefit more than 44 million foreign-born people in the U.S. who send remittances to family and friends in their home countries. With the introduction of domestic money transfer services, Xoom says it will now serve even more customers, including more than half of Americans who make domestic P2P payments.
Ria Money Transfer operates as a unit of Euronet Worldwide, a network of more than 385,000 locations across 160 countries. It operates 175 locations across the U.S. PayPal's Xoom also serves 160 countries globally.
“Our continued partnership is a fine example of how Ria's technology can serve as an enabler between platforms, offering consumers and partners an added layer of security and compliance screening, in turn facilitating value creation within the fintech ecosystem," Juan Bianchi, CEO of Euronet’s money transfer segment, said in the release.
Xoom says its money transfers generally aid recipients for everyday needs like paying utility or healthcare bills, or education costs and funds for emergencies. The Xoom brand has operated in Japan, Latin America, Southeast Asia, China, and parts of Europe, Canada and Australia.
PayPal and Walmart began a relationship last year in which the PayPal mobile app could be used for cash-in and cash-out money services, allowing users to take cash out when inside the Walmart store or load cash into their PayPal balance in the store.