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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.
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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
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
| Wise | Xoom | |
|---|---|---|
| Transfer fee | $8.81 | $0 |
| Exchange rate | US$1 = 0.9420 | US$1 = €0.9212 |
| Transfer speed | 1-2 days | Within minutes |
| Total British pounds received | €933.75 | €921.22 |
| Receiver gets | €12.53 more | €12.53 less |
Sending $10,000 to the UK
| Wise | Xoom | |
|---|---|---|
| Transfer fee | US$50.91 | US$0 |
| Exchange rate | US$1 = €0.9420 | US$1 = €0.9212 |
| Transfer speed | 1-2 days | 3-4 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.
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.
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 methods | Receiving options | Minimum and maximum transfers | Transfer speeds | Currencies | |
|---|---|---|---|---|---|
| Wise | Bank transfer, credit card, debit card | Bank account only | Minimum: $1 Maximum: $1 million | Within minutes – a few days | 45+ currencies |
| Xoom | Bank transfer, credit card, debit card | Bank transfer, cash pickup, home delivery | Minimum: $10 Maximum: $10,000 (180-day limit) | Within minutes – a few days | 130+ 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.
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.
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.
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