Xoom vs Western Union
See whether Xoom or Western Union is better for your next money transfer.
Xoom is an international money transfer app from PayPal while Western Union is one of the world’s oldest money transfer services.
We look at their fees, exchange rates and additional features side by side to see which of the two is best for your next money transfer.
The fees and rates used in this comparison are accurate as of 27 July 2019.
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Which has lower fees?
Xoom
Xoom’s transaction fees vary depending on your payment method, how much you’re sending, the destination and the currency. Based on these factors, fees can range from a couple of dollars to over $200.
Western Union
Western Union’s transaction fees also vary based on payment method, amount sent, destination and currency. They start at around $10 and can potentially run up to $100+ for very large transfers. Fees can sometimes be lowered by submitting transfers at an agent location or by sending directly to/from a bank account.
Winner: Tie
Both Xoom and Western Union fees start low but can get very high in certain situations, but generally sit within a similar range.
Let’s crunch the numbers: Sending $500 and $5,000 to Mexico
The table below shows how much it costs in fees and exchange rates to send money from Canada to Mexico with Xoom and Western Union. It both cases it assumes you’re taking the cheapest transfer option available.
Sending $500 to Mexico
| Xoom | Western Union | |
|---|---|---|
| Transfer fee | $4.99 (pay online by bank transfer; cash pickup or direct deposit into recipient’s bank account) | $5.00 (in-store transfer; cash pickup) |
| Exchange rate | 1 CAD = 14.2552 MXN | 1 CAD = 13.9718 MXN |
| Transfer speed | Up to 4 business days | Minutes (in-store transfer, not online) |
| Total Mexican pesos received | MXN$7,056.47 | MXN$6,916.04 |
| Receiver gets | MXN$140.43 more | MXN$140.43 less |
Sending $5,000 to Mexico
| Xoom | Western Union | |
|---|---|---|
| Transfer fee | $0.00 (pay online by bank transfer; cash pickup or direct deposit into recipient’s bank account) | $75 (in-store transfer; cash pickup) |
| Exchange rate | 1 CAD = 14.3268 MXN | 1 CAD = 13.9718 MXN |
| Transfer speed | Up to 4 business days | Minutes |
| Total Mexican pesos received | MXN$71,634 | MXN$68,811.12 |
| Receiver gets | MXN$2,822.88 more | MXN$2,822.88 less |
In both cases Xoom is a more cost-effective option than Western Union, thanks to its more favourable exchange rates and cheaper fees.
When sending $500, your loved ones will get around MXN$140 more (roughly $10 CAD) by sending with Xoom instead of Western Union, and when sending $5,000, they’ll get around MXN$2,800 more (roughly $195 CAD) with Xoom than Western Union.
Which offers better exchange rates?
Xoom
Xoom adds a margin to the exchange rates it offers customers. This varies depending on currencies and other factors and can range from less than 1% to over 3%.
Here’s an example of CAD to EUR:
- If the mid-market rate is 1 CAD = 0.6820 EUR
- Xoom’s exchange rate might be 1 CAD = 0.6752 EUR
This ends up being a margin of 1.00%.
Western Union
Western Union’s margins on international transfers also vary widely and can range from around 1% to more than 5%, depending on the situation.
Here’s an example of CAD to EUR (Euros):
- If the mid-market rate is 1 CAD = 0.6820 EUR
- Western Union’s exchange rate might be 1 CAD = 0.6385 EUR
This ends up being a margin of 6.38%.
On the other hand, the exchange rate for CAD to INR (Indian rupees) could be as follows:
- If the mid-market rate is 1 CAD = 52.3059 INR
- Western Union’s exchange rate might be 1 CAD = 51.1807 INR
This ends up being a margin of 2.15%.
Winner: Tie
Both Xoom and Western Union have varying margins, and neither is consistently better than the other.
Which is faster?
Xoom
Xoom transfers vary depending on the location, and might be processed by the same or next day in some cases, while taking up to 4 business days in others. Transfers of $10,000 will also take an additional 2-3 days on top of the norm.
Western Union
Western Union bank transfers can take around 3 days on either end, adding up to 6 business days if you both send money through a bank transfer, and the recipient receives it the same way. It offers consistent express options for cash pick-ups around the world though.
Winner: Western Union
Western Union can consistently offer transfers within minutes for cash pick-ups all around the world. Meanwhile, Xoom transfer times vary widely and are dependent on making a deposit early enough in the day.
General features
| Payment methods | Receiving options | Maximum and minimum transfers | Transfer speeds | Currencies | |
|---|---|---|---|---|---|
| Xoom | Bank transfer, credit card, debit card | Cash pick-up, bank transfer | Minimum: $10 Maximum: $10,000 | 2-3 business days | 20+ currencies |
| Western Union | Bank transfer, credit card, debit card, cash | Cash pick-up, bank transfer | Minimum: $1 Maximum: $7,500 | Within minutes | 100+ currencies |
Xoom
To send money with Xoom, you’ll need a US or Canadian bank account. With that, you can sign up for an account online or by downloading the Xoom app. You can also log in with a PayPal account, but you won’t be able to draw on your PayPal account balance for Xoom transfers.
Once you’re signed in, you can send money online through Xoom.
Western Union
You’ll need to create an account if you want to send money online through Western Union, but you won’t need to if you’d rather go to a Western Union branch or make a payment over the phone.
In all cases, you will need to have the recipient’s details on hand and be able to make a payment before you can send money overseas.
Bottom line
It’s neck and neck! Whether Xoom or Western Union is better for your needs depends on the situation. Neither will always be faster or more cost-effective than the other, so it’s worth getting a quote from each to see which comes out on top.
Looking for more options?
It’s worth comparing a wide range of options beyond Xoom and Western Union to see if you can save money on your next transfer.
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.
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