67 WALL STREET, New York - February 26, 2014 - The Wall Street Transcript has just published its 2013 IPOs Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Initial Public Offerings - IPOs
Companies include: Xoom Corporation (XOOM)
In the following excerpt from the 2013 IPOs Report, the CEO of XOOM discusses the outlook for his company and strategic direction for investors:
TWST: Can we start with a brief overview of Xoom's business?
Mr. Kunze: Xoom Corporation is a digital money transfer company. We are applying technology to a very large industry that is mostly an offline industry, which is offering consumers a highly inconvenient value proposition and an expensive one. So we are disrupting this extremely large marketplace from offline channels to digital channels on a sustainable, very healthy business model and giving the consumers the single best experience in money transfer.
TWST: Is there much of a learning curve for customers in getting this new way of doing things across? How do you market that?
Mr. Kunze: One of the best things about Xoom's value proposition is that we have a very easy-to-use experience. It's seamless. It's what we call frictionless, where we don't ask the customer any invasive questions. New clients can join Xoom in just a few minutes by telling us who they are, who their beneficiary is, by giving us their bank account and telling us how they want the beneficiary to receive the money. It's basically four simple questions and within minutes their beneficiary will have the money in most cases. The customer not only can sign up quickly, but they can see very quickly that the money has been received - giving them an experience that is magical compared to the offline experience - and therefore driving a high degree of loyalty amongst new customers, which is in part what drives our entire business model.
TWST: You mentioned that this is a disruptive technology. What specific businesses could change or even vanish as a result of the ability to transfer money this way?
Mr. Kunze: We operate in four broad categories of what they call corridors. First of all, we send money from the United States only to 31 countries now, and we generalize them on the receive side into four categories. The smallest one is the developed-world category of Australia, Canada, the U.K., Europe and South Africa. Here we're competing with retail bank wire transfers, where the most common alternative is to walk into a BofA or a Chase or a Citi or a Wells Fargo, and find the person who can help you wire money to the United Kingdom, for example, at 10 times Xoom's fee. So the competition here is sort of the entrenched way that you would move money to a developed-world marketplace by a wire transfer.
The second corridor is India and here we are competing primarily against an Indian bank called ICICI...
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.