PayPal Holdings, Inc.’s (PYPL - Free Report) international money transfer service, Xoom, has recently expanded its operations to Canada.
Xoom’s services will allow customers in Canada to send money, make bill payments or reload their phones in more than 130 countries internationally at a better rate.
The expansion is in sync with PayPal’s intention of expanding and enhancing its payment offerings on a global basis. Moreover, the latest expansion is likely to attract more merchants to its platform. This will improve the merchant base of the company, in turn aiding top-line growth in the long haul.
Global Remittance Market Holds Promise
According to a World Bank Data, the global remittance market grew 7% from a year ago to $617 billion in 2017and is expected to increase 10.3% this year to around $690 billion, which is huge.
Coming to Canada, it is considered as one of the world's most diverse countries, which remits nearly $24 billion each year.
Therefore, PayPal’s expansion to Canada definitely makes a lot of sense. The company, however, plans to expand in other new markets in the coming months.
The customers in Canada can now send up to $12,500 CAD in a single transaction, either directly to a bank account or as cash for pick-up or delivery. To avail the service, existing PayPal users in Canada has to log in to Xoom with their PayPal credentials. However, the firm expects to expand the cap to $25,000 CAD later.
Over the past few years, partnerships, acquisitions and international expansion have played a significant role in shaping the company’s growth trajectory via adding strength to its product portfolio.
Through this expansion, PayPal looks forward to bolster digital payment adoption across the world through improved online payment. This will enable millions of consumers to manage and move their money conveniently.
According to the latest report from Statista, total transaction value in the digital payment market is anticipated to reach $3.3 trillion in 2018 and likely to witness a CAGR of 13.5% between 2018 and 2022. Further, it is expected to reach $5.4 trillion by 2022.
Consequently, PayPal’s strategic acquisitions along with well performing payment platforms — Braintree, Venmo and Xoom — will continue supporting it to gain momentum in this rapidly growing market.
Zacks Rank & Other Stocks to Consider
Currently, PayPal has a Zacks Rank #2 (Buy). Other top-ranked stocks in the broader technology sector include AMETEK, Inc. (AME - Free Report) , QuinStreet, Inc. (QNST - Free Report) and Stamps.com Inc. (STMP - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth rate for AMETEK, QuinStreet and Stamps.com is currently pegged at 11.18%, 25% and 15%, respectively.
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