Published on Dec 26, 2024 6 min read

Xoom Money Transfer Review - Everything You Need to Know

International money transfer has never been easier, thanks to online money transfer agencies such as Xoom. Xoom has been established as a reliable brand under PayPal, it allows a fast, safe, and convenient way to transfer money to different countries. No matter the reason is, to support family abroad or even pay some bills in another country, Xoom has something for it. Let’s take a deep look at Xoom’s features, fees, strengths, weaknesses, and determine if this money transfer service is for you.

What is Xoom Money Transfer?

Xoom is an online money transfer company that started in 2001 and became part of PayPal’s company in 2015. The platform allows users to send money to over 160 countries, offering multiple transfer methods, including:

• Bank Transfers
• Cash Pickups
• Mobile Wallets

It also encompasses things like bills and mobile money charge which adds to its flexibility as a financial solution.

Features of Xoom Money Transfer

Xoom offers various features designed to make international transfers simple, secure, and efficient:

1. Multiple Transfer Options

With Xoom, you can send money in different ways:

• Bank Transfer: Deposit funds directly into a recipient’s bank account.
• Cash Pickup: Recipients can collect cash at partner locations.
• Mobile Wallet: Funds can be delivered to popular mobile wallets in supported countries.

2. Quick Transfer Times

Transfers with Xoom are often completed within minutes for cash pickups and mobile wallets. Bank transfers can take 1-2 business days, depending on the country and bank.

3. Global Coverage

Xoom supports over 160 countries, including popular destinations like India, Mexico, the Philippines, and the United States.

4. Flexible Payment Methods

You can pay for your transfer using:

• Bank Accounts
• Debit Cards
• Credit Cards

This flexibility makes Xoom convenient for users with varying financial preferences.

5. Additional Services

Beyond money transfers, Xoom allows you to:

• Pay Bills: Pay utility bills, including electricity, water, and gas, in selected countries.
• Mobile Top-Ups: Reload mobile phone balances for family or friends abroad.

6. Secure Transfers

Xoom prioritizes safety with PayPal’s advanced encryption and anti-fraud systems. Users can transfer money with confidence, knowing their transactions are protected.

How to Use Xoom for International Transfers

Using Xoom is simple and convenient, whether you’re transferring money on the website or using the mobile app. Here’s a step-by-step guide to help you send money with Xoom:

Step 1: Create an Account

Start by signing up for Xoom on their website or downloading the mobile app. The registration process is quick and straightforward. If you already have a PayPal account, you can skip the sign-up process and log in directly with your PayPal credentials.

Step 2: Enter Transfer Details

Choose the recipient’s country from the list of available destinations. Then, fill in the recipient’s details, including their full name and, depending on the transfer type, their bank account information or the address of a cash pickup location. You’ll also select the delivery method, whether it’s a bank deposit, cash pickup, or transfer to a mobile wallet.

Step 3: Select Payment Method

Decide how you’d like to pay for the transfer. Xoom offers multiple payment options, including linking your bank account, paying with a debit card, or using a credit card. Each method may come with slightly different fees and processing times, so choose what works best for you.

Step 4: Confirm Transfer

Carefully review all the transfer details before finalizing your payment. Double-check the transfer amount, the estimated delivery time, and any associated fees to ensure everything is correct. Once you’re satisfied, confirm the transfer with one click, and Xoom will begin processing your transaction immediately.

Step 5: Track the Transfer

After sending the money, you’ll be able to monitor the progress of your transfer in real time through the website or app. Xoom provides updates at every stage of the process, and both the sender and recipient will be notified once the money has been successfully delivered. This transparency ensures you’re always informed about the status of your transaction.

Xoom Fees and Exchange Rates

The cost of using Xoom depends on several factors, including the payment method, transfer destination, and currency exchange rate.

Breakdown of Xoom Fees:

• Bank Transfers: Lower fees compared to card payments.
• Debit/Credit Cards: Higher fees but faster processing.

Exchange Rate Margin

Xoom applies a small markup to the currency exchange rate. While this is common among money transfer services, it makes transfers slightly more expensive.

Tip: Always check the total cost, including fees and exchange rates, before confirming a transfer.

Pros of Using Xoom

Xoom has many advantages that make it a preferred choice for international transfers:

• Fast and Reliable Transfers- Xoom is ideal for urgent money transfers, with cash pickups often available within minutes.
• Trusted Brand- Backed by PayPal, Xoom is a safe and reliable platform for global transfers.
• Easy-to-Use Platform- Both the website and mobile app are user-friendly, making the transfer process simple.
• Multiple Transfer Options- Whether you want to send money to a bank, for cash pickup, or to a mobile wallet, Xoom gives you options.

Cons of Using Xoom

Despite its strengths, Xoom has a few limitations:

• High Fees for Card Payments- Using a debit or credit card incurs higher fees compared to bank transfers.
• Exchange Rate Markup- The exchange rates include a small margin, making transfers slightly more costly.
• Transfer Limits- Xoom has limits on how much you can send based on your account verification level.

Xoom vs. Other Money Transfer Services

There are several other money transfer services available, each with its own set of features and fees. Here's how Xoom compares to some popular alternatives:

• Western Union: Offers cash pickup, bank transfers, and mobile wallet transfers in over 200 countries but can have higher fees and slower processing times.
• TransferWise: Focuses on bank transfers with low fees and transparent exchange rates but has a limited number of destination countries.
• WorldRemit: Provides cash pickups, bank deposits, and mobile wallet transfers to over 150 countries with competitive fees but may have slower processing times for certain destinations.

Is Xoom Safe?

Yes, Xoom is a secure platform. It uses advanced encryption, fraud protection systems, and verification processes to keep your data and funds safe. As part of PayPal, Xoom adheres to strict financial regulations in multiple countries.

Final Thoughts

Xoom is an excellent option for individuals who need fast and reliable international money transfers. Its user-friendly interface, multiple delivery options, and PayPal backing make it a trusted platform for sending money abroad. While the fees for card payments may be high, the speed and security Xoom offers outweigh the cost for many users. If you’re looking for a secure, flexible, and easy-to-use transfer service, Xoom is worth considering.