Xoom, a PayPal service, distinguishes itself in the international money transfer market through its speed, convenience, and extensive payout options, particularly for cash pickup and mobile wallets. While it is a highly trusted, user-friendly, and fast option for sending money to family (often in minutes), it is generally more expensive than competitors due to higher fees and significant exchange rate markups.
Due to their extensive advertising budget, Xoom is a consideration of many expats attempting to find a less expensive way of transferring money to other countries. Once again, usually the least expensive way to transfer funds is by direct bank transfer. Here is a detailed comparison of Xoom against other major transfer apps based on key factors. We do not endorse any of these transfer apps.
Xoom vs. Wise (formerly TransferWise)
Cost: Wise is generally cheaper, offering mid-market exchange rates with no markup and lower, transparent fees. Xoom adds a 2-3% margin to the exchange rate.
Speed: Xoom often has faster, near-instant delivery.
Features: Xoom supports cash pickup; Wise focuses on bank-to-bank transfers, but offers multi-currency accounts.
Xoom vs. Remitly
Focus: Both are excellent for remittances (sending to family), but Remitly often has more competitive, transparent fee structures, especially for its “Economy” service.
Speed: Both offer fast, minute-level transfers.
Xoom vs. Western Union (WU)
Reach: Western Union has a larger network with over 500,000 agent locations worldwide compared to Xoom’s thousands.
Flexibility: Western Union allows for both in-person and digital transfers, while Xoom is primarily digital-first.
Cost: Xoom often has lower fees, but both charge exchange rate markups.
Xoom vs. MoneyGram
Network: MoneyGram boasts a larger global presence for physical cash, but Xoom generally offers better, faster digital integration, particularly for users with a PayPal account.
Xoom’s Competitive Advantages
Speed: Many transfers, especially via debit card, are completed within minutes.
PayPal Integration: Seamless funding from a PayPal balance or linked bank account.
Versatile Payouts: Recipients can receive money via bank deposit, cash pickup, or mobile wallet.
Additional Services: Ability to pay utility bills and reload phones in specific countries.
Disadvantages of Xoom
Service: Paypal has little to no real person help with their service. They cut cost by using non-human AI help.
Cost: Generally higher costs than Wise and some others, due to a combination of service fees and exchange rate markups (which can be over 3%).
Exchange Rate Spread: The exchange rate applied is often worse than the mid-market rate.
Lower Limits: While high, some competitors like Wise allow for much larger, high-volume transfers ($1.6M+ for Wise vs. $50k+ for Xoom).
Summary Verdict
Choose Xoom if: You need to send money fast to friends/family in over 160+ countries and prioritize speed, convenience, and cash pickup options.
Choose Alternatives (Wise/Remitly) if: You want the lowest fees, the best exchange rates, and are doing larger transfers where the cost of the exchange rate markup matters.
Author: G. William Hood
Author, Columnist, Educator, Epistemologist, and Publisher
