Xoom is a global money transfer service owned and operated by PayPal, the world’s largest online payment processor. PayPal acquired Xoom in 2015, and since that time, Xoom has zoomed into a leadership position in this specialized sector of the financial services industry.
With one of the largest service areas of any online money transfer service, Xoom makes it fast, easy, and affordable to send money almost anywhere in the world. The company focuses on the needs of customers seeking to make person-to-person funds transfers, and it supports a very flexible lineup of money delivery options.
Let’s take a closer look at how Xoom works and the pros and cons of using it as a money transfer service.
Pros and Cons of Xoom
Here’s what professional reviewers and customers especially like about Xoom as an online money transfer service:
- Xoom completes most transactions in minutes and concludes the vast majority of transfers on the same day, even if they involve cash deliveries
- Xoom supports a large set of recipient options, including the unique ability to order cash deliveries for your recipient
- Xoom provides a smooth, seamless website experience, and its mobile app enjoys very strong user ratings
- Customer service is excellent and available on a 24/7 basis
Xoom does have a couple of downsides:
- Many services are only available to customers originating payments from bank accounts in the United States or Canada
- Xoom’s currency exchange markup rates and transaction fees are higher than those charged by some competitors
Xoom is based in San Francisco and first began operating in 2001. It specializes in electronic funds transfers (EFTs. In 2015, online payment processing giant PayPal acquired Xoom Corporation in a deal valued at about $1.09 billion. Xoom now operates as part of the PayPal family. PayPal is the largest and most trusted provider of online payment processing services in the world. As of 2021, PayPal is a Fortune 500 company. It trades publicly on the Nasdaq stock exchange under the symbol PYPL.
How It Works
Customers can use Xoom’s website or mobile app to send funds to recipients almost anywhere in the world. As of January 2021, Xoom can deliver money to 159 countries and territories, and the company is always expanding its list of supported transfer destinations.
Using the service is easy. Here’s all you need to do:
- Create a free account on the Xoom website or set one up by downloading and installing the company’s app, available on Google Play and the App Store.
- Set up your transfer by entering the amount of money you wish to send in the original currency or in the destination currency of your recipient’s location. You can fine-tune the amount on either end to make sure your recipient gets the exact amount you intended.
- Select your delivery option. You can have money delivered to your recipient’s bank account, arrange a cash pickup or delivery, or set up a mobile phone top-up.
- Lock in your rate by confirming your transfer.
- Track your transfer online using Xoom’s up-to-the-minute tracking tools.
That’s all it takes!
Features and Performance
Xoom is widely cited as one of the internet’s fastest money transfer services. Most transactions are completed in just a few minutes. This includes transfers that move money from your bank account to a recipient’s bank account in another country. By comparison, some money transfer providers take two to four business days (or longer) to complete these types of requests.
Delivery options include:
- Direct deposits into recipients’ bank accounts
- Cash pickups
- Cash deliveries
- Mobile phone top-ups
Xoom’s cash delivery option is a unique feature, as Xoom appears to be the only online money transfer service to support this method as of January 2021. If you choose this option, Xoom will arrange to have cash delivered directly to your recipient’s address. This process takes a little extra time, but the convenience can make the slight wait worth it.
Minimum and maximum transfer limits apply. As of January 2021, here’s how they break down:
- Customers must send at least $10
- Customers with basic profiles are limited to $2,999 per day
- Customers with verified profiles can transfer $25,000 per day
Multilingual customer service is available 24 hours a day, seven days a week. Telephone-based agents speak English, Spanish, and Filipino. Service is also available in French during regular business hours.
However, one thing to note: as of January 2021, Xoom only supports money transfer requests originating in the United States and Canada. International customers can use the service for a more limited set of options, such as mobile phone top-ups, which are available regionally.
Costs and Pricing
Xoom applies a fairly complex fee schedule to its transactions. In general, the cost of choosing Xoom as your online money transfer provider is slightly higher than some competitors. However, few can compare to Xoom’s speed, making the extra money worth the while if timeliness is your chief consideration.
Transaction fees vary depending on your method of payment and destination country. If you pay from your bank account, you will incur a fee ranging from $2.99 to $7.99. These fees compare favorably with prevailing industry averages. Customers who pay with a debit or credit card pay $4.99 to $12.99 per transaction, which is also about average. Xoom also marks up its exchange rates, applying margins ranging from about 1% to 3% of the mid-market interbank rate that financial institutions pay when exchanging money.
On the plus side, Xoom is very transparent about its costs. When you set up your transaction, you’ll see a full breakdown of your costs, including the exchange rate and all applicable fees.
What Others Are Saying About Xoom
The Better Business Bureau (BBB) gives Xoom an A+ rating as of January 2021. Xoom is accredited by the BBB and has been since 2003.
On Trustpilot, Xoom has earned high scores and widespread praise across a very large volume of consumer reviews. As of January 2021, nearly 22,000 people have reviewed Xoom, giving the company an aggregate score of 4.4 out of 5.
Scores break down as follows:
- 87% of reviewers give Xoom 5 out of 5
- 92% give Xoom 4 out of 5 or higher
- 94% give Xoom a positive rating
The Bottom Line
Xoom offers lightning-fast money transfer speeds, and as part of the PayPal family, you can rest assured that the service is reliable, trustworthy, and stable. It is not the cheapest option on the market, but its transfer speeds are incredibly fast, and Xoom appears to be the only provider to offer cash deliveries directly to your recipient’s door. These unique features combine to give Xoom a distinct advantage. As you look into money transfer services, Xoom is a provider worth considering.