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WorldRemit vs. Xoom
Which online money transfer service offers the best exchange rates, lowest fees and fastest transactions?
WorldRemit and Xoom both offer a convenient online transfer service, multiple payout methods and the ability to send funds to more than 100 countries around the world. But which one is best depends on how much you’re sending and how you’re sending it.
The fees and rates used in this comparison are accurate as of February 8, 2019.
Which has lower fees?
You’ll be charged a fee when you send money overseas with WorldRemit, but the size of the fee is calculated based on:
- Your transaction amount.
- Where you’re sending money.
- The transfer method you select.
Bank transfers are the most affordable option and attract a flat $3.99 fee per transaction in most cases. However, fees vary depending on your transfer circumstances, so it’s a good idea to use WorldRemit’s online calculator to double-check the total cost of your transaction.
Xoom also charges transaction fees, but there are four factors that affect the fee amount:
- How you pay for the transfer.
- The transaction amount.
- Where you send the money.
- The currency being transferred.
If you send a large transfer and pay using your bank account, in some cases your transfer will be fee-free. For example, if you want to send a $1,000 transfer from the USA to India, the following fees apply:
- If sending a bank transfer. $0 if you pay with your bank account or $30.49 if you pay with debit or credit card.
- If sending a cash pickup. $4.99 if you pay with your bank account or $30.49 if you pay with debit or credit card.
While WorldRemit’s fees are often marginally lower, the fact that Xoom offers fee-free transfers on large transactions to certain destinations (when you pay with your bank account) means this one is a tie.
WorldRemit and Xoom both offer online calculators where you can work out the cost of a specific transfer, including not just the fee but also the exchange rate, so use these tools to help you decide which is cheaper.
Send money internationally with WorldRemit
Use promo code 3FREE to send your first 3 transfers with no fee. Send to 110+ countries for bank-to-bank deposit, cash pickup or mobile top-up.
- Use promo code 3FREE to send your first three transfers with no fee.
- No minimum transfers.
- Wide range of destinations.
- Competitive exchange rate.
Which offers better exchange rates?
The margin is the difference between the mid-market exchange rate listed on Google and the exchange rate a money transfer provider offers to you. The lower the margin, and therefore the closer your quote is to the mid-market rate, the more money your recipient will get. WorldRemit’s margin differs across all currencies but typically sits in the 0.7%–3% range. For example, if you wanted to send a transfer from the US to France:
- If the mid-market rate is 1 USD = 0.8817 EUR
- WorldRemit’s rate might be 1 USD = 0.8652 EUR
Xoom’s margins are generally within a similar range to those offered by WorldRemit. Using the same example:
- If the mid-market rate is 1 USD = 0.8817 EUR
- Xoom’s rate might be 1 USD = 0.8690 EUR
It’s impossible to nominate a winner in this category. While Xoom edges ahead on rates for some currencies, WorldRemit offers a slightly better deal on others.
Let’s crunch the numbers: Sending $500 to India
To give you an example of how WorldRemit and Xoom compare, let’s look at a hypothetical example of sending a $500 transfer from your bank account to your recipient’s bank account in India.
|Exchange rate||1 USD = 70.81381 INR||1 USD = 70.7826 INR|
|Transfer speed||Same day||Within 4 hours|
|Total received (in INR)||₹35,406.90||₹35,391|
As you can see in the table, sending this particular transfer with WorldRemit instead of Xoom would save you $4 in transfer fees and ensure that your recipient gets an extra INR 15.90.
Which is faster?
WorldRemit offers a variety of transfer options, so transaction times vary depending on the option you select. Instant bank transfers are available to selected banks, but you’ll need to wait one to three working days in other cases.
Cash pickup transfers are available to collect instantly, while WorldRemit lists mobile money and airtime transfers as “instant or near-instant.” Home delivery transactions can take anywhere between one and seven days.
Xoom’s transfer times vary depending on:
- Where you send money.
- The type of transfer you select.
- Your payment method.
Xoom claims that the money you send is available for your recipient within minutes in most cases, but can take up to a few days.
With its wide range of speedy payment options, WorldRemit wins this category.
WorldRemit vs. Xoom: How they work
|Payment methods||Minimum and maximum transfers||Delivery methods||Transfer speeds||Countries and currencies|
||Within an hour||145+ countries|
||Within minutes to a few days||130+ countries|
To send an overseas transfer with WorldRemit, you’ll need to sign up for a free account before entering the currency and amount you want to send. You’ll then be asked to enter your recipient’s details and what type of transfer you want to send: bank deposit, mobile wallet deposit, cash pickup, airtime top-up or door-to-door delivery, as well as who you’ll be sending it to. Accepted payment methods include bank account transfer, credit card, debit card, Android Pay and Apple Pay.
If you want to send a transfer with Xoom, and you’ve got a US or Canadian bank account, you’ll need to sign up for an account online or by downloading the Xoom app. When you initiate a transfer request you’ll be asked to provide:
- The currency and amount you want to send.
- Your recipient’s details.
- How your recipient will access the money you send (Xoom offers bank deposits, cash pickup transfers and home deliveries).
You can pay for your transaction using a credit card, debit card or bank transfer.
This was a very closely-fought battle and it was difficult to split the two contenders across all categories. WorldRemit comes out on top, but that doesn’t necessarily mean it will offer the best value for money for your transfer — exchange rates and fees vary based on a wide range of factors, so get a quote from both providers to be certain which one is right for your needs.
Ultimately, make sure you compare several international money transfer services to find the best deal.
Looking for more options?
Use the comparison calculator below to see how WorldRemit and Xoom’s fees, exchange rates and transfer times stack up against the features of a range of other money transfer services.
The “Rate” and “Amount Received” displayed are indicative rates that have been supplied by each brand or gathered by finder.com.
Exchange rates are volatile and change often. As a result, the exchange rate listed on finder.com may vary from the actual exchange rate quoted for the brand. Please confirm the actual exchange rate and mention finder.com before you commit to a brand.
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