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
Pros
Broad transfer network. Backed by PayPal’s technology and global network, Xoom lets you send to more than 160 countries.
Supports cash pickup. Unlike many online money transfer services, you can send money to many countries for cash pickup.
Zero-fee transfers available. $0 transfers are available to many popular destinations, depending on how you pay.
Fast. Most money transfers arrive within minutes (some take up to several days).
Supports many receiving methods. Send money to bank accounts and mobile wallets, for cash pickup, to top up mobile phones or delivered to recipients’ homes (in some regions).
Money-back guarantee. Xoom will issue a full refund if your funds do not reach the account you designate.
Cons
Cannot pay in cash. Xoom is an online money transfer service, so you can’t use cash to pay unless you deposit and transfer it to Xoom electronically.
Unpredictable fee structure. Xoom’s fees vary based on the destination country, sending amount, payment method and more. This makes it tough to compare Xoom to other services for your long-term transfer needs.
No currency hedging options. You can’t take advantage of options like stop-loss orders, futures contracts or forward contracts to guard against unfavourable currency fluctuations.
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.
Example: Using Xoom to send $500 from Canada around the globe
As of March 25, 2022, here are the exchange rates and transfer fees for sending $500 from Canada to bank accounts in various destination countries using Xoom.
These were Xoom’s exchange rates for sending $500 to various countries when we check on March 26, 2022. Bear in mind that exchange rates change all the time, so the rate you will get could be different.
Destination country
Currency
Midmarket rate
Xoom exchange rate
Margin
Fees (CAD)
India
INR
61.1190
60.4550
1.09%
$0-$10.99
Philippines
PHP
41.7742
40.7015
2.57%
$0-$10.99
China
CNY
5.1015
4.9354
3.26%
$4.99-$10.99
United Kingdom
GBP
0.6075
0.5945
2.14%
$2.99-$10.99
Mexico
MXN
16.0551
15.7130
2.13%
$0-$10.99
European Union
EUR
0.7307
0.7152
2.12%
$2.99-$10.99
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:
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.
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.
Choose a receiving option, then enter your recipient’s information.
Enter your information (name, phone etc.)
Enter your payment information.
Review the details of your transfer. If everything looks correct, submit the transaction.
Xoom money transfer speed
The biggest factors affecting the speed of your Xoom money transfer are the destination country and how funds are received.
Most transfers arrive within minutes, although some can take up to 4 business days. Sending money for cash pickup is often quicker than directly depositing funds into bank accounts.
Countries may have different transfer limits. This can affect your options including the speed of your transfer. For example, you can’t send more than 50,000 INR for cash pickup to India. To send more, you’ll have to transfer directly to a bank account, which may take longer.
Most transfers arrive within
Minutes
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:
Philippine peso (PHP)
Indian rupee (INR)
Chinese renminbi (CNY)
Hong Kong dollar (HKD)
Bangladeshi taka (BDT)
Vietnamese dong (VND)
Singapore dollar (SGD)
Euro (EUR)
Australian dollar (AUD)
British pound sterling (GBP)
United States dollar (USD)
Mexican peso (MXN)
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):
Level
24-hour limit
30-day limit
180-day limit
Required documents
1
$999
$5,000
$9,999
Sender profile information
2
$12,500
$25,000
$40,000
Passport, driver’s license, or another government issued ID
Utility bill or another proof of address
Bank statement or another statement issued by your bank
Additional information at Xoom’s request
3
Bank deposit: $75,000
Cash pickup: $15,000
Bank deposit: $90,000
Cash pickup: $25,000
Bank deposit: $130,000
Cash pickup: $65,000
Documents required for Level 2 if not already provided (pay stubs are also acceptable)
Additional information at Xoom’s request
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?
Our table below lets you compare services you can use to send money abroad. Compare fees, exchange rates and discounts from different money transfer services, and when you have made your choice, click Go to site.
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.
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
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.
Xoom will send you an email notification when your funds are received. You can also track transfers in your Xoom account.
No, Xoom is only available for person-to-person money transfers. You cannot use Xoom for commercial transfers.
Yes. Xoom lets you schedule transfers in advance, which can be helpful if you need to pay bills or send recurring payments.
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.
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
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
An international money order may not be the best option for sending money overseas. Learn more about money orders in Canada, and find out about other ways to transfer funds abroad.
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