A high-speed lifeline for workers sending money home.
With 188 million users, PayPal, which spun off from eBay in 2015, has been at the forefront of trying to turn smartphones into the new wallet, replacing cash, coins, and sometimes even the bank teller. And it’s been a real boon for workers supporting families with overseas jobs. The company’s money transfer app, Xoom, lets anyone send money across borders from a phone, typically from a worker in a richer country to his or her family members in a poorer one.
These transfers, which make up the $600 billion money remittances market, often take days to make and force senders to wait in long lines at brick and mortar stores. Xoom customers skip those hassles, and they sent $7.1 billion to 50 countries over the 12 months through September 2015.
Small businesses are also benefitting from PayPal’s financial technologies. In 2013, the company created PayPal Working Capital, designing it to use the company’s data crunching algorithms to make loans to such businesses. To date, PayPal, whose lending business is one of its fastest growing arms, has issued $2 billion in loans to 90,000 business borrowers. As CEO Dan Schulman has said, “We want to democratize the banking system.”
Economic Opportunity/Financial Inclusion
Financial Data Services
Daniel H. Schulman
|Revenues ($M) (Last Fiscal Year)||$9,248|
|Profits ($M) (Last Fiscal Year)||$1,228|
|Market Value ($M)||$45,947|