PayPal's Evolution Under Xoom's Influence: Six-Month Insights Revealed
PayPal's Transformation Project Revitalises Xoom
PayPal, under the leadership of CEO Alex Chriss, is currently halfway through a multi-year transformation project that has positively impacted its subsidiary, Xoom. This transformation, which was initiated in August 2022, has been a key focus in PayPal's earnings materials since the start of 2024.
Xoom, a consumer remittance brand acquired by PayPal in 2015 for $890 million, had initially seen investment under its new parent but was deprioritized during the pandemic. However, the current transformation project has brought renewed focus to Xoom.
Signs of Xoom's refocus within PayPal are evident, with updates to both the Xoom website and app. These updates have resulted in a shift in the sources of Xoom's web traffic. The company's renewed focus is part of a wider bid to grow all parts of PayPal.
One of the key aspects of PayPal's transformation project is the integration of crypto payments. PayPal's "Pay with Crypto" initiative and the launch of PayPal World, a platform connecting major global digital wallets and payment systems, enhance cross-border payment experiences. As PayPal’s remittance and money transfer service, Xoom stands to benefit from these improvements in speed, cost, and accessibility of international payments, supporting its core market of cross-border remittances.
Another significant aspect is the focus on reducing transaction fees and enabling near-instant payments with cryptocurrencies like PYUSD (PayPal’s USD stablecoin). This creates new efficiencies and attracts both consumers and merchants, adding value to Xoom’s offering in the remittance space, where cost and speed are competitive advantages.
The transformation project has also resulted in a growing user base and payment volumes for PayPal, showcasing its scale and ecosystem strength. Xoom benefits indirectly by increasing the user exposure to PayPal’s full-range payment services, reinforcing trust and accessibility for Xoom users.
PayPal's leadership in crypto payments and extensive global partnerships position Xoom as part of a forward-looking financial platform rather than a legacy money transfer service. This broader transformation lends renewed confidence and interest from both consumers and investors in the Xoom brand as an embedded part of PayPal’s evolving commerce vision.
PayPal's Q2 2024 earnings have highlighted promising early results for the ongoing multi-year transformation project. The impact of Xoom's website and app updates on its web traffic is a topic of interest in the current quarter's earnings. Chriss characterised 2024 as a "transition year" for the company, outlining a multi-year plan for change.
The transformation project is expected to be a long-term endeavor, with results measured in quarters and years. Chriss stated that the company is on the right trajectory and expects to be stronger in the future. The payoff from the transformation project, particularly for Xoom, is becoming increasingly evident.
Following its Q2 2024 earnings, PayPal's share price rose, reflecting the market's positive response to the company's transformation efforts. The signs of renewed interest in Xoom, as part of a wider bid to grow all parts of PayPal, are a testament to the successful execution of the transformation project under CEO Alex Chriss.
[1] PayPal Investor Relations. (2025). Q2 2025 Earnings Presentation. [Online] Available at: https://investor.paypal-corp.com/investor-relations/earnings/default.aspx
[2] Chriss, A. (2024). PayPal Q2 2024 Earnings Call Transcript. Seeking Alpha. [Online] Available at: https://seekingalpha.com/news/3796557-paypal-inc-q2-2024-earnings-call-transcript
[3] PayPal. (2025). Q2 2025 Earnings Release. [Online] Available at: https://investor.paypal-corp.com/news-releases/news-release-details/paypal-reports-second-quarter-2025-results
[4] PayPal. (2024). Q1 2024 Earnings Release. [Online] Available at: https://investor.paypal-corp.com/news-releases/news-release-details/paypal-reports-first-quarter-2024-results
- The integration of cryptocurrency payments into Xoom, facilitated by PayPal's "Pay with Crypto" initiative, is expected to improve cross-border payment experiences for Xoom's core market of cross-border remittances.
- PayPal's focus on reducing transaction fees and enabling near-instant payments with cryptocurrencies like PYUSD (PayPal’s USD stablecoin) is aimed at attracting both consumers and merchants, thereby adding value to Xoom's offering in the remittance space.
