PayPal Holdings Ins on Friday announced that it has completed its previously announced acquisition of Xoom Corporation.

By the terms of the agreement that was initially announced on July 1, 2015, PayPal acquired all of the unsettled shares of Xoom for $25 per each share in cash, Reuters reported. As per the deal, Xoom will now operate as a separate entity within PayPal under the leadership of John Kunze, who will in turn report to PayPal CEO, Dan Schulman.

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Xoom provides a secure way to send funds and pay bills for friends and family around the world using gadgets like mobile phones, tablets or computers. With Xoom, Paypal will have access to a tune of 1.5 million active U.S customers, who in 12 months, sent approximately $ 7.1 billion. This was by the end of Sep. 30, 2015 where over 40 countries such as India, China, Mexico and Brazil contributed to the transactions.

Besides its global reach, Xoom boasts a loyal mobile customer base - with about 97 percent of its transactions coming from active repeat users and 60 percent from mobile.

According to Smart Analyst, Xoom and PayPal are well-connected to democratize both the movement and management of money. By combining Xoom's capabilities and PayPal's global scale, PayPal, as a company plans to create simpler and more secure convenient ways of sending and accessing money.

Through this acquisition, Xoom will also help accelerate PayPal's entry into the international remittances market. PayPal, on the other hand, will help enlarge Xoom's services to a bigger clientele and in more places throughout the world, Finextra reported.

PayPal has announced that there will be an exception regarding charges for a particular period. Precisely, there will be no charges in 2015 full year as per the guidance issued on Oct. 28, 2015, based on the recent acquisition. As per the previous announcement, the acquisition is expected to be slightly dilutive to PayPal's earnings per share in 2016.

TagsPayPal, Paypal mobile, PayPal China, PayPal and Xoom, Xoom