Emerging Trends and Challenges

PayPal Acquires Xoom for $890 mm
Xoom: Competitive Strengths
Compelling Value
Proposition
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Xoom provides significant value to its customers through a unique combination of convenience, speed and
cost-effective pricing of its services
Business model innovations result in cost advantages that benefit customers in the form of cost-effective
fees
Proprietary Risk
Management System
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Xoom’s proprietary risk management system serves as the backbone of its technology platform, balancing
a low-friction customer experience with low transaction loss rates, which have been 35 basis points or
lower as a percentage of gross sending volume on an annual basis since 2010
The Company’s risk management system has been developed from the ground up and refined over ten
years through continuous innovation
Online Origination
Affords Valuable
Customer Insight
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Xoom’s customers initiate money transfers online or through mobile devices and usually connect their
bank accounts
This creates a body of digital, transaction-related data that enables the Company to gather deep insight
into repeat customer behavior, including expected funding methods, transfer frequency and disbursement
preferences
Marketing Expertise
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Xoom’s marketing campaigns include advertising on television stations and websites frequented by
immigrant communities and ongoing incentive trial campaigns where the Company provides rewards to
customers for trying the service
Established Global
Disbursement
Capabilities
Source: Company website, SEC filings.
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Xoom has a global disbursement network with major banks and leading retailers; enables the Company to
more effectively acquire new customers through co-branded marketing campaigns in the United States
As number of customers and recipients on platform increases, Xoom provides greater value to
disbursement partners, which in turn allows the Company to further expand and develop its disbursement
network, bringing in more customers
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