PayPal Inc said it would buy digital money transfer provider Xoom Corp (XOOM.O) for $890 million as it muscles into a growing international remittance market and expand in countries like Mexico, India and China ahead of a spinoff from eBay Inc (EBAY.O). The offer price of $25 per share in cash represents a premium of about 21 percent to Xoom’s Wednesday closing price of $20.70. Xoom shares surged on the announcement and were trading around the offer price in extended trading.