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XOOM CEO John Kunze on the company’s IPO and success in the digital money transfer business.
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Slightly better at the moment.
Zoom that's with an X zoom is booming at its public trading debut this is an online money transfer company.
So this is a great story they price their IPO at sixteen dollars a share which was actually above expectations.
It open on the NASDAQ shot right up to 21 it is now seeing gains of 43 and a half percent.
CEO president John -- is smiling today congratulations thank you very much spent the year and then by the -- was what people think been with the company what eight years yes -- -- this has been a long road to the IPO roadshow and then the IPO why was now the time because clearly.
You struck the hammer right on the -- Well you can't go public and -- -- so you have to have certain size yet have the right.
Market in front of you have to the rate excuse and ability we thought now was the right time perfect time for a slip.
Talk about your typical customer who goes online to transfer money.
This is not some billionaire who's pressing send this is true talk about.
Okay these are all foreign born folks who have moved United States.
And they're really courageous their inspiration or employees -- that come here to get a better opportunity.
To live a better life themselves and they could possibly back home.
But also they've come here slick and move money.
Back home to loved ones -- that left behind it's inspiring use case it's a non discretionary use case to sometimes.
When you moving money back -- loved ones it's what they used to live on what they used to eat sometimes.
Now for your revenue jumped 68%.
In the first nine months of 2012 so suddenly people woken up to this service.
Of the tell us about the metrics a -- how do you do what you just jump online and you.
Hook up your bank account for you at a checkout a Cisco.
It's this easy you come to us -- fill out a few forms.
You tell us who you are you tell us who mom is he tells us she wants to get the money you had your bank account you click OK and seconds later mom has money it's really that easy.
That the global transfer business is growing exponentially but some of the names have been around forever for example Western Union money Gramm you just have the CEO MoneyGram on Monday feeling very confident about this -- -- -- question becomes.
How do you differentiate what you offer -- -- what they offer.
Well the big difference for buses that were digital money transfer company mean ultimately.
Only means that all of our customers are using the Internet -- their mobile phones to access him to send money home.
So we don't have any offline money transfer cash origination -- it's all done through digital channels.
I would say though that this is getting a little crowded pop cash for example over at Citigroup.
Argues that what -- you know every bank is now offering a way to just two quick transfers how do you stay in the front or at least right there at the front of the pack.
Well all those solutions that you just discuss her for domestic money transfer we move money from the United States out to thirty countries.
So it's a very different concept.
And in the markets that we're serving you either have to move money into -- cash channel so that the beneficiary walks and with an idea in -- -- with cash or putting money directly into their bank accounts were doing that in real time.
We -- -- billion error handling which is unheard of even domestically John.
What would a tighter immigration policy in this country do to your business because you just pointed out.
Who your classic customer really is and -- beacon to them wonder.
This country is battling over a bunch of things but suddenly immigration is very much at the forefront -- if congress decides to get tighter and tougher does that hurt.
Your business well here here's a story that businesses -- sort of the markets we serve.
That's an 82 billion dollars.
Total available market -- two billion dollars -- United States these thirty countries.
Last year -- process 3.2 billions we only have 4% share that means there's a massive run my between us and what I would refer to is -- -- levels share.
Which will make us a very large company on that alone.
Foreign money transfers are regulated and does Dodd-Frank put -- -- -- that anything that you're going to do as you look forward to how that becomes a problem or an issue or not yeah this is great actually because Dodd-Frank is great aphrodisiac stop the -- to happen but somebody says Scott -- -- fraud protection bureau of laws that are being put in place.
Is great resume because they're so pro consumer you have to be transparent -- and -- -- to guarantee the payout yet to see when money's gonna arrive.
Yet -- -- refund when asked for we do all that already.
So we're really in favor of these lost because it's going to be good for us hard for competitors to buy.
Away for those of you like me who go back so far that they remember when zoom dot com -- the dot com that was a marketing it has bought the name you're totally different from what Chris -- he started fact that.
Exactly John it's good to see -- congratulations.
John currency is the CEO and president of zoom again I tell you on the first day of trading it's up 43%.
