Xoom money transfer review

Our Verdict

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.

How much are Xoom’s fees?

Xoom’s fees depend on what type of transfer you are making and how you plan to pay for your transfer. Here’s a roundup of some of the factors that could impact how much you have to pay:

• Payment. Paying by bank transfer is the cheapest option while paying by credit card will have higher fees. Additional cash advance fees may also be charged to your credit card.
• Recipient’s location. Where you are sending funds will also affect the fees you are charged.
• Amount. Different fees are charged based on how much you’re sending.
• Delivery. To send cash, fees are generally higher, while receiving money to a bank account is often less expensive.

Here’s an example of Xoom fees you might see while sending $1,000 to Mexico or India, accurate of as March 1, 2022.

Destination	Payment method	Fee
Mexico	PayPal balance or bank account	$0
Mexico	Credit or debit card	$3.99
India	PayPal balance or bank account	$0
India	Credit or debit card	$30.49

You can use Xoom’s Fees and Exchange Rate Calculator to see the fees that apply to your transfer destination and amount.

Compare money transfer fees now

How are Xoom’s exchange rates?

The exchange rate offered by Xoom may change depending on the amount of money you’re sending. Here are the rates when we checked on March 1, 2022 for sending USD to INR through Xoom:

Sending amount	Xoom rate	Mid-market rate	Markup
$10 – $50	73.4456	75.59	2.92%
$51 – $1,989	74.1940	75.59	1.88%
$1,990 – $1,999	74.2701	75.59	1.78%
$2,000 – $9,999	74.6432	75.59	1.27%
$10,000+	74.8678	75.59	0.96%

As we have done above, it is best to compare the displayed rate on Xoom with the current mid-market rate to work out the size of the margin charged. You can also then use the interbank rate as a benchmark for comparing rates of other money transfer providers.

What are the ways I can send money abroad with Xoom?

Xoom has three ways you can send money abroad, including cash pickup options which means your beneficiary could receive their funds almost instantly.

• Bank deposit. You can send money to bank accounts in more than 150 countries and territories worldwide.
• Cash pickup. Send your funds as a cash pickup at thousands of partner locations around the world.
• Doorstep delivery. Xoom also allows you to have cash delivered directly to your recipient’s door.

How to send money transfer with Xoom

Before you can send funds with Xoom, you must register for a free account with your personal contact information. While you don’t need to enter a Social Security number at sign-up, Xoom does require you to upload a government-issued ID, like a license or passport, and a recent bank statement if you want to send higher amounts.

• Step 1: Create an account

  It is free to sign up for a Xoom account. You can do this either online or via its app.

• Step 2: Provide transfer details

  Choose the country you are sending to, enter the amount you want to send and choose your payment method.

• Step 3: Enter your recipient’s details

  The next step is to enter your recipient’s information, including full name, address and bank account details.

• Step 4: Review transfer details

  Verify all the details of the transfer and consider comparing the rate against other money transfer companies.

• Step 5: Confirm the transfer

  If you are satisfied with the rate, then confirm the transfer to send the money.

What are Xoom’s payment options?

Xoom transfers can be paid for in a few different ways when sending from the United States, including:

• Bank account transfer
• Credit or debit card
• PayPal balance

Each payment method may have different fees depending on your sending destination, but overall paying with a bank account or PayPal balance tends to be the cheapest option.