PayPal has enlisted Goldman Sachs to help it explore a potential sale of its international money transfer subsidiary Xoom, according to tech news site The Information.
PayPal has been working on a sale process for Zoom - which it acquired for nearly a billion dollars in 2015 - for several months, says The Information, citing a source.
The possible sale could be related to influence from activist investor Elliott Management, which purchased a stake in PayPal in 2022, says The Information.
In its most recent quarterly earnings, PayPal revealed that P2P total payments volume (TPV) — PayPal, Venmo and Xoom — rose two per cent to $91 billion and represented 26% of TPV. Cross-border TPV made up 13% of TPV, down from 14% last year.
Last year, PayPal missed revenue, adjusted operating margin and net new active users targets for the year, leading to a big pay cut for CEO Dan Schulman, who is leaving the firm this year.