Wise vs Xoom

PayPal's native international transfers service goes up against the UK's own Wise.

Moving away from traditional bank transfers, both Xoom and Wise (TransferWise) position themselves as easy to use international money transfer services. Xoom even gives you the convenience of using your PayPal balance to send money to other users, We compare their fees, exchange rates and features to help you choose the provider that works best for you.

Wise and Xoom at a glance

Wise (TransferWise)Xoom
Overall rating★★★★★★★★★★
Arrange transfers online
Arrange transfers through app
Arrange transfers by phone
BasedLondon, UKSan Francisco, US
FCA reference900507470235
LinkGo to site

Compare Wise to Xoom

1 - 2 of 2
Name Product Filter values Ratings Pay by Receiving options Fastest transfer Fee (pay by bank transfer) Key benefits
Wise (TransferWise)
Finder rating
Credit card, Debit card, Bank transfer
Bank account
4 hours
From £3.75
Refer 3 friends to receive up to £50 referral bonus
Finder rating
Credit card, Debit card, Bank transfer
Cash pickup location, Bank account, Home delivery
Within minutes
From £0

Compare up to 4 providers

Which charges lower fees?

Xoom’s fee structure is varied, depending on payment type, location, amount and delivery. Xoom sits under the PayPal umbrella, so while it does offer convenience, it is not known for competitive fees or exchange rates.

Wise charges two fees – a percentage of the transfer and a small flat fee that’s only a few pounds. Its variable fee is influenced by how much you send, how you pay for your transfer and where you are sending your money.

While Xoom’s fees may win this round, it’s important to remember transfer fees only make up half of the cost of making a money transfer.

Trophy iconWinner: Xoom

Which offers better exchange rates?

Wise offers the “mid-market” or “interbank” rate, meaning it never adds an additional margin on top. This means it is generally the best rate available.

Xoom’s exchange rates change depending on the amount of money you’re sending. But it’s safe to say, that whatever the rate is, it’s not going to beat Wise’s.

Trophy iconWinner: Wise

Example: Sending £15,000 to Canada

Transfer fee£63.05£0.00
Exchange rate1 GBP = 1.55509 CAD1 GBP = 1.5298 CAD
Transfer speed2 days1 day
Total received$23,228.30$22,947.00

In this example (which doesn’t use live rates), Wise charges a hefty fee, but because its exchange rate is so good, it works out as the better deal.

Coverage and payout

Wise (TransferWise)Xoom
Coverage rating★★★★★★★★★★
Number of available currencies56
(including: EUR, USD, CNY, INR, PHP, PKR, ZAR)
(including: EUR, USD, CNY, INR, PHP, PKR, ZAR)
Number of supported countries222139
Cash pick-up facility
Speed rating★★★★★★★★★★
Fastest transfer speed4 hoursWithin minutes
LinkGo to site

Which is faster?

Xoom operates a cash-pickup facility through partner networks and its fastest transfer speed is near instantaneous.

Trophy iconWinner: Xoom

Payment methods

Wise (TransferWise)Xoom
Bank transfer
Debit card
Credit card
LinkGo to site

Wise offers every traditional payment method going; bank transfer, debit card, credit card – you name it. However, Xoom has a trump card in that users in the UK who already have and use PayPal can integrate their existing accounts into Xoom. Meaning they could use their PayPal balance to send money overseas.

Trophy iconWinner: Xoom

Forex features

Wise (TransferWise)Xoom
Facilities rating★★★★★★★★★★
Recurring transfer facility
Forward contracts facility
Limit orders facility
Stop loss orders facility
Customer servicePhone, EmailPhone, Email
Personal account manager
Price matching facility
LinkGo to site

Don’t expect much from Xoom when it comes to Forex features. It simply acts as a payments service and offers nothing extra on the foreign exchange front. While Wise doesn’t particularly stand out in this area either, it does give you the opportunity to set up a recurring transfer if you wanted to.

Trophy iconWinner: Wise

The verdict: Which is better: Wise or Xoom?

Wise and Xoom specialise in easy to use and convenient international money transfers. Xoom’s fees are slightly more favourable than Wise’s, but its exchange rate lets itself down. Whereas you won’t find a better exchange rate available than Wise’s, its fees can work out higher depending on your transfer needs. Xoom does have the facility for you to pay with your PayPal balance, but we think Wise has the overall edge in terms of its service, especially if you don’t use PayPal.

Trophy iconOverall winner: Wise

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.

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