PayPal’s Xoom Teams With Visa on X-Border P2P

Xoom now lets U.S. customers send money to eligible Visa debit cards in 25 countries.

The new service meets consumers’ growing demand for quick, easy ways to send money to friends and family in other countries, Xoom parent company, PayPal said in a Thursday (Jan. 12) press release.

“This expansion, through our partnership with Visa, will help more customers around the world get a fast and convenient way to access necessary funds needed for everyday essentials,” PayPal Vice President of Remittances Wei-Lin Lee said in the release.

PYMNTS research has found that 16% of U.S. consumers send a total of $76 billion annually in remittances and that they’re looking for new options that allow them to do so inexpensively, easily, securely and conveniently.

The decade-long shift in how consumers send money abroad has expanded possibilities for cross-border remittances, and people are now favoring cheaper options that allow them to transfer funds easily, securely and conveniently across borders, according to “The Digital Currency Shift: The Cross-Border Remittances Report,” a PYMNTS and Stellar Development Foundation collaboration.

While wire transfers — which are a common method of sending remittances — can take five days, a Xoom Debit Card Deposit provides recipients with access to the funds in minutes, according to the PayPal press release.

Previously limited to U.S. domestic money transfers, Xoom’s Debit Card Deposit now enables Xoom customers to make cross-border money transfers and to enable recipients of remittances to access funds easily, securely and in real time, according to the release.

Cross-border remittances and account-to-account (A2A) transactions hold particular appeal to those who use Visa Direct, and faster payouts through Visa Direct are proving popular on an increasingly complicated global stage.

During its earnings call in October, Visa executives reported that Visa Direct had 5.9 billion transactions in the fiscal year, excluding Russia, up 36%. In the fourth quarter, Visa Direct had 1.7 billion transactions, up 7% from the third quarter — and now reaches 3 billion cards and more than 2 billion accounts.

The Xoom Debit Card Deposit is to be expanded to additional countries throughout the year, the release said.

“There’s an ever-increasing need for digital solutions that help remove barriers for those looking to send money to friends and family across borders,” Yanilsa Gonzalez-Ore, senior vice president and head of Visa Direct North America, said in the release. “Through this extended collaboration between Visa and PayPal, Xoom’s Debit Card Deposit will enhance cross-border money movement with real-time payment capabilities offered through Visa Direct.”