The competition between cryptocurrency and the traditional financial system is gaining momentum. The PayPal payment platform has launched the Xoom mobile payment application in Europe, which provides cost-effective and faster transfers worldwide.
As the company spokesperson stated, PayPal expects that the new instrument will enable people to enjoy less expensive money transfers as compared to the traditional payment services and more convenient than sending cryptocurrencies.
With the Xoom service, residents from 32 countries in Europe will be able to send money to more than 130 countries worldwide.
Benefiting from collaboration with large banking institutions, Xoom will make easier to make transfers of up to GBP 8,800 ($11,029) per transaction.
The mobile payment application offers money transfers the next day for a commission lower than that of the main payment platform PayPal.According to the company, transfers using Xoom in Europe cost about $4, and to more distant countries, $9.
This makes PayPal the main competitors of international money transfer services, such as TransferWise and MoneyGram, which charge a fee of between 5-12 and 4-10 dollars, respectively. More importantly, Xoom is becoming a competitor to platforms created on blockchain technology, such as Ripple. However, if a company wants to compete with Ripple, it will be necessary to speed up the money transfer process and significantly reduce the price. Sending cryptocurrency transactions through Ripple takes less than a minute and costs a few cents.