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Wise (TransferWise) vs. Xoom

Which one of these low-cost money transfer services should you choose when sending payments overseas?

Wise offers stronger exchange rates than Xoom, but when it comes to transfer speed and fees the two services are more evenly matched. Xoom’s delivery speeds vary based on the destination and how much you want to pay, and the service offers cash payout in some countries. We compare Xoom vs. Wise on speed and cost to help you pick the best option for your transfer.

Name Product Filter Values Fastest Transfer Speed Fees (Pay by Bank Transfer)
Wise (TransferWise)
Within minutes
From 0.41%
Wise uses the mid-market rate and transparent fees to help you send money in 45+ currencies.
Xoom
Within minutes
From $4.99
Xoom is an easy way to send money, reload phones and pay bills around the world.
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Which service has lower fees?

Wise

Wise charges a percentage fee as well as a small flat fee. For instance, if you sent $1,000 from the United States to the United Kingdom, you would pay $7.40.

Xoom

Xoom’s fees depend on how you make the payment. Sending money from your bank account won’t cost you anything. However, paying by credit or debit card will. For example, for a $1,000 transfer from the US to the UK:

  • Fees when paying by bank account: $0
  • Fees when paying by card: $30.49

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Winner: Tie

It’s tricky to pinpoint a clear winner here, because it depends on how you make the initial payment. Xoom’s fee is $0 if you use your bank account to make the payment, but if you pay by card, it can add up.

Wise has overall low fees, and the company has announced that it’s changing its fee system on March 8, making most fees even lower.

Let’s crunch the numbers: Sending $1,000 and $10,000 from the US to the Europe

Let’s see how Wise and Xoom compare when sending two different amounts from the US to Europe.

Sending $1,000 to Europe
WiseXoom
Transfer fee$8.81$0
Exchange rateUS$1 = 0.9420US$1 = €0.9212
Transfer speed1-2 daysWithin minutes
Total British pounds received€933.75€921.22
Receiver gets€12.53 more€12.53 less
Sending $10,000 to the UK
WiseXoom
Transfer feeUS$50.91US$0
Exchange rateUS$1 = €0.9420US$1 = €0.9212
Transfer speed1-2 days3-4 days
Total British pounds received€9,372.54€9,212.18
Receiver gets€160.36 more€160.36 less

Which service offers better exchange rates?

Wise

Wise is one of the few money transfer providers that offers customers the mid-market rate. So if, for example, you’re sending money to New Zealand and the mid-market rate works out at 1 USD = 1.5900 NZD, that’s the rate Wise will give you.

Xoom

Xoom makes a profit by adding a margin on top of the mid-market rate. For example, Xoom’s exchange rate for New Zealand might be 1 USD = 1.5697 NZD, while the mid-market rate is 1 USD = 1.5900 NZD.

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Winner: Wise

By offering the mid-market rate, Wise is a clear winner here.

Which service is faster?

Wise

Paying with a credit or debit card means the money could be available to your recipient within minutes. However, some currencies and payment methods will take longer, and could take up to four days.

Most currencies will take one to two days on average.

Xoom

Xoom says the money will be available to your recipient within minutes. It can take longer depending on factors such as the country you’re sending it to, how you make the initial payment and how the money will be received.

If you send more than $10,000, it will take another two to three business days on top of the normal processing time, while Xoom settles the funds with your bank.

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Winner: Tie

Both Wise and Xoom offer payments within minutes, but times vary depending on the method of payment, the currency and country. In this category, it’s difficult to pick a clear winner.

General features

Payment methodsReceiving optionsMinimum and maximum transfersTransfer speedsCurrencies
WiseBank transfer, credit card, debit cardBank account onlyMinimum: $1

Maximum: $1 million

Within minutes a few days45+ currencies
XoomBank transfer, credit card, debit cardBank transfer, cash pickup, home deliveryMinimum: $10

Maximum: $10,000 (180-day limit)

Within minutes a few days130+ currencies

Wise

Head to Wise’s website and choose the currency and amount you want to send. You transfer your local currency to Wise, and they transfer your recipient’s local currency out of their bank account in that country.

At every stage of the transfer, you will be updated via email. You also have the option of using an app to track your transfer, or checking it through the Wise website.

Read review: Wise

Xoom

After setting up an online account or downloading the Xoom app, choose the amount you wish to send and the currency, and where the recipient will access the money. Xoom offers a money-back guarantee if your transfer isn’t received. There is also 24-hour support, and you can track your transfers via text, email or online.

Read review: Xoom

Bottom line

It’s a close call between these two international money transfer providers, and both have their advantages. Wise offers the mid-market rate with no added margin on top, while Xoom offers no fee if you pay by direct bank transfer. Ultimately what you choose depends on your payment method and the currency you’re sending.

Make sure to compare a range of services before you make a choice.

Looking for more options?

Our table lets you compare the services you can use to send money abroad. Compare services on transfer speeds and fees, then click Go to site when you're ready to send.
Name Product Filter Values Fastest Transfer Speed Fees (Pay by Bank Transfer)
Airwallex
Airwallex
Within minutes
$0
After spending $15k in your first 90 days, receive a one-time $500 bonus that will automatically be credited to your account on any FX conversion.
Airwallex can help you make business payments to 150+ countries in 60+ currencies.
Wise (TransferWise)
Within minutes
From 0.41%
Wise uses the mid-market rate and transparent fees to help you send money in 45+ currencies.
Cash App
Within minutes
From $0
With this peer-to-peer payment app make payments to your friends and family with no transfer fees within the US or from the US to the UK or EU.
Instarem
24 hours
From 0%
New Instarem customers will get a special FX rate and zero-fees on their first transfer.
Instarem offers offers rewards on every transaction.
MoneyGram
Within minutes
From $0
MoneyGram has fast cash pick-up transfers to more than 350,000 agent locations worldwide.
Western Union
Within minutes
From $0
Enjoy $0 fee on your first online transfer. Western Union makes money from currency exchange. Not valid on credit cards or sends to Cuba.
Western Union sends money online to friends and family in 200+ countries and territories around the world.
OFX International Money Transfers (Business)
24 hours
$0
Business customers: Send safe, no-limit transfers with no fees and competitive exchange rates.
CurrencyTransfer for Business
24 hours
$0
Increase business efficiency with zero transaction fees and same-day transfers.
OFX
24 hours
$0
OFX has no maximum limit transfers, with competitive exchange rates for 45+ currencies.
Xe Money Transfer for Business
24 hours
$0
Save your time and money with Xe Money Transfer for business.
Currencies Direct (business)
24 hours
$0
Minimizes costs of international transactions and offers custom solutions for business clients. Currencies Direct may call you to confirm your transfer, so be prepared for a phone call shortly after initiating a transfer.
Xe
Within minutes
$3
Xe has fast transfers with low fees and a range of foreign currency tools.
CurrencyTransfer
24 hours
$0
CurrencyTransfer lets you shop around for the best exchange rate on its online marketplace.
Currencies Direct
24 hours
$0
CurrenciesDirect makes transferring money abroad simple with bank-beating exchange rates. Currencies Direct may call you to confirm your transfer, so be prepared for a phone call shortly after initiating a transfer.
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