PayPal’s international money transfer service, Xoom, has added a remittance feature to its Debit Card Deposit product, allowing its US customers to send money abroad.
The new feature will allow remittance receivers who have a Visa debit card “real time” access to funds.
Xoom’s Debit Card Deposit launched in 2020 for US domestic transfers. Now, customers can send money internationally, allowing friends and family to receive money almost instantly.
With the new feature, customers can currently send money to 25 countries, including the UK and Ukraine in Europe, Thailand and Vietnam in Asia, and Jamaica. More are expected to be added throughout the year.
Previously, customers could send money internationally through Xoom by bank deposit or cash pickup. The Debit Card Deposit feature allows funds to be available in minutes.
PayPal said in a statement, that wire transfers are commonly used for remittances, which can take five business days or longer to reach the receiver.
Wei-Lin Lee, vice president of remittances at PayPal, commented: “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.”
Yanilsa Gonzalez-Ore, senior vice president and head of Visa Direct North America, added: “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.”
Xoom is available through an app or online and can also be accessed through PayPal’s platforms.
According to the World Bank, remittances to low- and middle-income countries grew an estimated 5% to $626b in 2022, and are vital source of income to households.
The US outward remittances in 2021 totalled over $72,000m, by far the largest exporter in the world.
The growing market has led to the creation of many remittance companies, such as Xoom and Wise, to rival Western Union, which has long taken the lion’s share of the market.
PayPal acquired San Francisco startup Xoom in 2015 for more than $1b.