PayPal Set to Challenge Blockchain-Based Payments with Xoom
PayPal, the global payments giant, has announced that its Xoom payments and remittance solution will soon go live in the United Kingdom and 31 markets across the world, reports PYMNTS on July 15, 2019.
PayPal Extends Xoom’s Reach
In a bid to remain relevant in a world where cryptocurrency and distributed ledger technology-based remittance systems are fast transforming the payments ecosystem, PayPal has expanded the reach of its Xoom service.
The global remittance heavyweight has reportedly revealed that Xoom, its international money transfer service will now function in the United Kingdom and 31 other jurisdictions across the world.
PayPal says Xoom will make it possible for millions of people living in the U.K as well as other European nations to send remittance payments to users across 130 countries including Nigeria, India, China, the Philippines and more.
To make the Xoom solution successful, Paypal has reportedly partnered with top banks and financial institutions in the Philippines and other regions, to offer instant deposits while cash pickups are available only in banks and some malls.
Commenting on the expansion of the Xoom remittance service, Julian King, general manager of Xoom said in an interview with PYMNTS that:
“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 case of Xoom, we saw that the service was a materially underserved market segment, with no appropriate, meaningful innovation.”
The Xoom service enables users in supported regions outside the United States to transfer up to 8,800 GBP ($11,029) per transaction, while the U.S has a transaction limit of $50,000.
Ripple Still Dwarfs Xoom
Though Xoom facilitates next-day money transfers at fees lower than that of PayPal, the service, however, has a long way to go before it surpasses blockchain-based remittance platforms like Ripple.
Specifically, Xoom reportedly offers next-day money transfers for $4 in Europe and $9 to other countries. Ripple, on the other hand, sends international payments via its numerous blockchain-based payments solutions within minutes, with meagre fees.
BTCManager informed on July 15, 2019, that Spain’s Santander Bank had expanded its Ripple-powered cross-border payments service. It now allows users to transfer more than $11k between the U.K. and Poland in less than a minute without charges.