Together as one… (Photo: BidnessEtc)

The Digital Money Transfer business is booming and everyone wants to be a part of it. So does PayPal.

This is a classic “if you scratch my back, I’ll scratch yours” situation; both PayPal and Xoom has a lot to gain from this deal. More specifically, according to The New York Times, Xoom has USD 25 per share to gain, which will amount to a total of USD 890 million after paying off Xoom’s debts.

Not mentioning the vast knowledge behind PayPal. PayPal, on the other hand, will receive a stake in the Digital Money Transfer business. This convenient way of transferring money is also loved by online casinos; it makes online gambling payments fast and simple.

Digital Money Transfers are gaining popularity

Mr Kunze, XOOM CEO

As The New York Times states, the traditional way of wiring money with Western Union is starting to grow old.

However, the yellow-black company has nothing to worry about, because the World Bank valued it at USD 600 billion. It is also true, that development is inevitable, so Western Union will eventually have to think up something new.

Just as people prefer iPhone gaming, they also like apps that allow them to wire money instantly from their phones. As Mr. Kunze, CEO of Xoom told The New York Times, 60% of users transfer money with their phones. And that is exactly what Xoom offers and that is precisely the aspect that sweetens the deal most for Paypal.