HomeNewsPayPal’s Xoom introduces direct money transfer in the US
PayPal’s Xoom introduces direct money transfer in the US

PayPal’s Xoom introduces direct money transfer in the US

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Xoom has launched the direct money transfer service in the U.S. Clients residing in the country can send funds to a debit card or bank account of a receiver within the U.S. borders.

Xoom introduces direct money transfer service in the U.S.

On 19th November, Xoom introduced the direct money transfer service to its U.S. customers. Xoom is a remittance service provider under PayPal. Following the announcement, clients in the United States are now able to send funds directly to the debit card or bank account of an eligible recipient.

Xoom has facilitated the execution of these transactions digitally. One does not have to stand in line at a money transfer agent; especially during this period when social distancing is crucial. U.S. residents can send money to a friend or family member living in the country via the Xoom mobile app or its website. Besides, the recipient does not have to have a Xoom or PayPal account to access the funds.

While speaking about the new service, Xoom’s VP and General Manager said, “This is yet another important step in our mission to provide customers with more flexible and convenient ways to have fast and easy access to their money.”   

Xoom’s new service has come an opportune time. The coronavirus pandemic has resulted in the overwhelming loss of jobs in the U.S. Prior to COVID-19, the Labor Department received about 225,000 jobless aid applications in a week. When the disease gained the status of a global pandemic in March, jobless claims rose drastically to 6.9 million.

The second wave of coronavirus has caused a further increase in unemployment claims. According to recent data, unemployment claims in the country rose to 742,000 last week. Sadly, about 10 million residents of the United States will no longer be receiving unemployment benefits after the expiry of 2 federal programs at the end of this year. This figure represents half of the population receiving some form of jobless benefits. The unemployed individuals are largely relying on their family and friends for survival.

PayPal continues to build-up on its digital payments structure

Lockdown measures such as social distancing and travelling restrictions have enhanced the digital payments trend. Indeed, the major money transfer companies have strived to enhance the transfer speed, reliability, and cost of their services. Subsequently, digital transactions have become the key driver of growth for these firms.

During its Q3’20, PayPal attributed its 25% revenue growth to increased transactions and active customers. The success of Xoom’s new service is likely to result in the increase of PayPal’s digital transactions and the subsequent growth of its revenue in the current quarter.    

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Crispus Nyaga
Crispus Nyaga
Crispus is a financial analyst with over 9 years in the industry. He covers the stock market, forex, equities, and commodities for some of the leading brands. He is also a passionate trader who operates his family account. Crispus lives in Nairobi with his wife and son.