Xoom review

Our Verdict

Xoom is PayPal’s answer to global money transfers and an easy next step if you already have a PayPal account. Depending on the country, you can even choose how your funds reach your recipient, be it bank account, debit card, cash pick up or even straight to their home. This is what makes Xoom hugely convenient.

However, what you gain in ease is lost on costs as you’ll be saddled with Xoom’s poor exchange rates and additional transfer fees. And these costs vary widely between currencies and where you’re based. All in all, Xoom seems much less appealing when compared to other specialist transfer services.

What is Xoom money transfer?

California-based international money transfer service, Xoom, was founded in 2001 by Kevin Hartz and Alan Braverman. Hartz was also an early-stage investor of PayPal, which acquired Xoom in 2015 for $890 million USD.

PayPal has used Xoom to leverage itself in the international money transfer market as more and more online transfer services have sprung up offering diverse, cost-effective options for sending funds overseas.

With Xoom, users can send money to 160+ countries around the world for cash pickup, direct deposit to bank accounts or mobile wallets, as mobile phone top ups or for delivery to recipients’ homes (available in some regions).

Pros and cons of Xoom money transfer

Xoom money transfer fees

Xoom’s fees start around $1.99 for small transfers. But if you want to send large amounts ($10,000+), be prepared to pay hundreds of dollars in fees. Ultimately, the total cost of a Xoom money transfer depends on several factors:

• Sending amount (the more you send, the higher your fees)
• Destination country
• Sending and receiving currencies
• Payment method
• How the money will be received (bank account deposit, mobile wallet, cash pickup etc.)

There are some situations when transfer fees will be waived. For instance, when we checked, you could send $1,000 to India with zero fees when paying with your PayPal balance or by bank transfer.

You can check fees, exchange rates and payment options for your transfer using the calculator feature on Xoom’s website.

Xoom exchange rate

Like most transfer services, Xoom makes money by charging transfer fees and by deducting a small fee worth a percentage of the midmarket exchange rate (this fee is often referred to as a “margin” or “spread”).

The midmarket rate is the value of one currency when converted to another currency. Think of it as the “true” exchange rate between 2 currencies before any fees or other deductions from banks or transfer services. The lower the margin applied by your transfer service, the higher the exchange rate and the more your recipient will receive.

Along with the markup, it should be noted that when paying with a credit or debit card, the fee you’ll be charged will be proportional to the amount of money you’re sending. So the more money you send, the higher the fee you’ll have to pay. When we checked, sending $5,000 to India through Xoom and paying with a credit card will cost you $106.49 in fees.

Xoom money transfer: Step by step

To send a Xoom money transfer, you need to create a free account. To do so, you’ll need to enter basic details like your contact information. To qualify for higher transfer limits, you have to upload a scanned copy of valid government-issued ID such as a driver’s license or passport and a recent bank statement. This is for security purposes.

Once you’ve created an account, sending a Xoom money transfer is simple. Follow these steps:

1. Login to Xoom with your Xoom or PayPal email and password. Select Send Money. You will also see options to reload mobile prepaid phones or pay bills.
2. Select your destination country, or select Change to choose a different country from the one that appears. Input the transfer amount (make sure the sending currency is correct). The exchange rate will appear. Select Show Xoom fees for this transaction to view payment methods and fees.
3. Choose a receiving option, then enter your recipient’s information.
4. Enter your information (name, phone etc.)
5. Enter your payment information.
6. Review the details of your transfer. If everything looks correct, submit the transaction.

What currencies can you send with Xoom?

Xoom supports transfers to more than 160 countries and territories worldwide. Some of the popular currencies that Xoom supports include:

Xoom sending limits

Xoom separates accounts into three levels based on how much verification you’ve given. For Canadian residents, these are the limits for transfers to bank accounts and cash pickups (all amounts are in CAD):

What payment methods does Xoom accept?

When sending money from Canada through Xoom, you can use the following payment methods:

• Credit card
• Debit card
• Bank account transfer
• PayPal balance

Bank account transfers and paying from your PayPal balance tend to come with the lowest fees, although this might not be the case for some transfers.

How does Xoom compare to other money transfer services?

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10 of 10 results

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Filter Values	Fastest Transfer Speed	Fees (Pay by Bank Transfer)
Wise (TransferWise) Finder Award		24 hours	From 0.33%	Wise uses the mid-market rate and transparent fees to help you send money in 45+ currencies.	Go to site More info Compare product selection Compare	loading
RemitBee		Within minutes	From $0	Send money to 100+ countries via Debit Card, EFT, e-Transfer, and more or exchange USD/CAD between bank accounts online.	More info Compare product selection Compare	loading
Xe Money Transfers Finder Award		Within minutes	$0	Xe has fast transfers with low fees and a range of foreign currency tools.	Go to site More info Compare product selection Compare	loading
Instarem		Within minutes	From $0	Enjoy a special exchange rate and zero fees on your first transfer. Valid until February 10, 2026. T&Cs apply.	Instarem offers inexpensive transfers and the opportunity to earn rewards points.	Go to site More info Compare product selection Compare	loading
Africhange		Within minutes	From $0	Send money in CAD to Africa on this blockchain and P2P powered provider.	Go to site More info Compare product selection Compare	loading
Remitly Finder Award		Within minutes	From $0	New customers can access special offers like free transfers and better exchange rates. T&Cs apply.	Remitly has quick, affordable transfers around the world, with both express and economy options.	Go to site More info Compare product selection Compare	loading
MoneyGram Finder Award		Within minutes	From $0	For a limited time, get $0 fees on your first money transfer from Canada. T&Cs apply.	MoneyGram has fast cash pick-up transfers to more than 350,000 agent locations worldwide.	Go to site More info Compare product selection Compare	loading
OFX Finder AwardExclusive		24 hours	From $0	Finder exclusive: Discounted exchange rates for your first and ongoing transactions. $0 transfer fee. T&Cs apply.	OFX has no maximum limit transfers, with competitive exchange rates for 50+ currencies.	Go to site More info Compare product selection Compare	loading
Xe Money Transfers Finder Award		Within minutes	$0	Xe has fast transfers with low fees and a range of foreign currency tools.	Go to site More info Compare product selection Compare	loading
Airwallex		Within an hour	$0 - $35	Get up to $500 in FX fees refunded for international money transfers sent within the first 3 months of opening a new account. T&Cs apply.	Airwallex has transparent fees and fast transfers. Make business payments to 150+ countries in 60+ currencies.	Go to site More info Compare product selection Compare	loading

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Showing 10 of 10 results

Is Xoom PayPal?

Since 2015, Xoom has been owned and operated by PayPal. If you have a PayPal account, you can login to Xoom using your PayPal login credentials. Recipients of Xoom money transfers do not need to have a PayPal account to receive funds.

Is Xoom safe?

Through its parent company, PayPal, Xoom is licensed to provide money transfer in the US, Canada and other countries. Furthermore, Xoom is accredited with the Better Business Bureau (BBB), from which it has earned an “A” rating for being responsive to customer complaints, handling customer disputes effectively, adhering to transparent business practices and other factors.

Xoom follows a number of industry-standard best practices for protecting customers’ personal and financial data secure including:

• Encryption: Xoom uses 128-bit data security encryption to protect data transmitted on its platform.
• Firewall. Xoom’s servers are protected by a firewall and are not directly connected to the Internet.
• Multi-factor authentication. When logging into your Xoom account, you may be asked to provide a single-use security code sent to your email.
• Employee screening. All Xoom employees must pass criminal and financial background checks.
• Dedicated anti-fraud services. A dedicated email address exists for reporting unauthorized account access. Xoom will investigate and fully refund any unauthorized transactions.
• Money-back guarantee: Xoom guarantees that your money will arrive in the account you designate or your transaction will be fully refunded.

Does Xoom have an app?

Xoom has an app on both Google Play and the App Store. The app makes it possible to:

• Send money quickly. Shortcut the transfer process using records of past transfers and contact info stored on your phone.
• Track transfers. Find out where your money is with real-time tracking updates.
• Check fees and exchange rates. Use the in-app fee and exchange rate calculator to see how much your Xoom money transfer will cost.

Ratings as of March 25, 2022
Google Play Store	4.7 out of 5 based on 226,539 user ratings
Apple App Store	4.7 out of 5 based on 19,116 user ratings

Best international money transfer apps

How do I contact Xoom money transfer?

You can reach Xoom customer service using the contact form on the company’s website. Phone support is available 7 days a week within business hours. Service is available in multiple languages including English, Spanish, Filipino, French, Italian, German, Arabic, Vietnamese and Chinese.

Bottom line

Backed by PayPal’s extensive global network and technology, Xoom offers convenient transfer options and competitive fees, although you’ll have to look elsewhere if you’re looking for currency hedging options or want to pay in cash. Overall, here’s what we like the most about Xoom:

• Supports transfers to 160+ countries
• Accepts payment via debit, credit, bank transfer and PayPal balance
• Many transfers arrive in minutes

Sending an international money transfer from Canada

Want to compare Xoom with other services side-by-side?

• Xoom vs. Western Union

FAQs

• Do I need to open a new bank account to send money with Xoom?

  No, neither senders not receivers need to open a bank account to use Xoom. However, you’ll need to register for a free Xoom account to send money.

• How will I know when my funds have been received?

  Xoom will send you an email notification when your funds are received. You can also track transfers in your Xoom account.

• Can I use Xoom to send money for business purposes?

  No, Xoom is only available for person-to-person money transfers. You cannot use Xoom for commercial transfers.

• Can I set up pre-authorized or scheduled transfers with Xoom?

  Yes. Xoom lets you schedule transfers in advance, which can be helpful if you need to pay bills or send recurring payments.

• Is there a fee for cancelling my Xoom money transfer?

  No, you are not penalized for cancelling transfers. However, if your transfer has already been processed, you may not be able to stop and reverse the funds. Contact Xoom as soon as possible to find out about your options.

Written by

Stacie Hurst

Associate editor

Stacie Hurst is an editor at Finder, specializing in loans, banking, investing and money transfers. She has a Bachelor of Arts in Psychology and Writing, and she has completed FP Canada Institute's Financial Management Course. Before working in the publishing industry, Stacie completed one year of law school in the United States. When not working, she can usually be found watching K-dramas or playing games with her friends and family. See full bio

Stacie's expertise

Stacie has written 282 Finder guides across topics including:

• Banking
• Stock Trading
• Cryptocurrency
• Personal Loans
• Car Loans
• Credit Cards

Co-written by

Zak Killermann

Publisher

Zak Killermann was a technical publisher at Finder who specialized in currencies and investing. Zak’s expertise was in breaking down technical finance concepts into approachable, digestible nuggets of information. See full bio