For Freelancers like me who have clients overseas, how many of you who also use Xoom to receive payments? It’s a great online money remittance service, isn’t it? Well, it’s officially a Paypal company today. Beginning today, you will see a small Paypal logo under the Xoom word on its banner.
Xoom, for the sake of others who don’t know it yet, is an online money remittance service. The sender and receiver will create an account with their bank information. The sender will send money through Xoom, from the bank information entered on their account, to another Xoom user that is identified by email. The receiver will receive the money directly to their bank account, which is also saved on their Xoom account.
It is like Paypal where the money is sent to another account identified by email, but different as the money transferred directly to the receiver’s bank account, unlike Paypal that can store the money and can be withdrawn or use for purchase.
The acquisition was announced last July this year, just before Paypal’s split with eBay. But today Xoom is officially a Paypal company.
Xoom was bought for a staggering $890 million.
For Xoom users, will it affect user experience?
I like to use Xoom for receiving payments because it is fast and I haven’t encountered any hassle so far in 3 years of using it. And unlike Paypal, I don’t have to withdraw my money which will save me from withdrawal fees. It’s just that before they have the option for automatic repeating payment. It’s good for monthly regular payment if you are a Virtual Assistant who have a steady job that pays you monthly. But the last time I returned to the site, that feature was gone.
I just hope that the merging won’t do a negative effect on the service. If it does, I hope it’s for the better.
Here’s the link to Paypal’s announcement of the merging on their blog.