PayPal has been actively searching for potential buyers for Xoom, the platform the company owns that facilitates international money transfers, The Information reports.
This move suggests that activist investor Elliott Management, who acquired a significant stake in PayPal last year, is influencing the company’s strategic decision-making pushing for cost reductions, which likely also means eliminating duplicate services.
In 2015, PayPal, then owned by eBay, acquired Xoom for approximately $890 million, expanding the company’s portfolio to include the international payments service which enables customers to send money to others, settle international bills, and recharge prepaid mobile phones.
However, The Information claims that over the past few months, PayPal has reportedly been collaborating with Goldman Sachs to oversee the sale of the Xoom division.
It is unclear how much PayPal could get for Xoom. However, one likely reason to ditch the division is PayPal’s latest partnership with Visa trialing a P2P payment service that would offer similar features to Xoom as well as its own services that now make it easier to send money internationally.
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