Xoom money transfer review — What you need to know

7 minute read

Xoom is a PayPal company, offering international payments which can be made directly into a recipient’s bank account, for cash pickup or home delivery in 70 countries around the world.¹ You can send money via Xoom’s website or app and track your transactions online too.

If you’re thinking that Xoom might be the right provider for your international payments, you’ll want to know a bit more about how the service works, what it costs, and how competitive it is against other providers. That’s where we come in. Here’s all you need to know about Xoom — including a quick comparison with Transferwise, so you can decide if it’s the right service for you.

Xoom money transfer basics

Xoom offers international transfers to over 70 countries, either as direct bank deposits, for cash pickup or home delivery to your recipient. The charging structure used is fairly complex, with costs depending on how you fund the payment, how it’s collected, and where it’s going. Before you decide to use Xoom it’s a good idea to look at the fee and exchange rate calculator on Xoom’s website to see how their products and services might suit your needs.

Xoom money transfer basics

Here are a few things to think about when you’re comparing Xoom’s money transfer services with other providers out there.

  • You can have your money deposited in your recipient’s bank account, delivered to their home, or made available for collection via a local agent
  • Xoom has good global reach, with over 70 countries served
  • Some payments go through very quickly — particularly those funded by credit and debit card, although these come with higher fees than transfers made using an electronic bank transfer
  • Complex fee structure, with several different variables.
  • The exchange rate used includes a markup — remember to compare it to the real mid-market rate to check you think it’s fair
  • Payments funded by bank transfer can take a few business days to reach the recipient

How does it work?

You’ll need to register with Xoom first, before you can begin making payments. This means you’ll have to complete a form, and click on the email that’s sent to you for verification purposes. You can then either complete transactions online via the Xoom website or download the Xoom app.¹

To make a payment you’ll have to:

  • Connect a payment source to your Xoom account — a linked bank account, credit or debit card
  • Log into your account and click the make a payment option. You then need to give the recipient’s details including bank account if you’d like to make a direct deposit into the recipient’s account
  • Check you agree to the fees and exchange rate available, using the fees and exchange rate calculator, and make the payment
  • You can then track the payment via the app or website, to see when it has been received

Xoom exchange rates and fees

You’ll need to know what fees Xoom will charge for the transfer you need to make, to help you decide whether this is the right service for you.

When you start to model the transfer you want to make on the Xoom exchange rate and fees calculator, you’ll first select the country you’re sending money to, and then input the amount in dollars you want to send. This will pull up a page where you can model the payment, to see what the transfer will cost you using different payment methods and depending on how your recipient would like to get their money.

The fees you pay depend on both where you’re sending to, how you fund the transfer, and how the money is received, so the charging system includes several variables.

To send $1,000 to Australia, as an example, will cost $30.49 if I send money to my friend’s bank account, using a credit or debit card. However, if I have my friend collect the money in cash — still paying using my card — it’ll cost $20.49. The fees are far cheaper if I use a linked bank account to fund the transfer instead — there’s no upfront fee to make a payment direct from my bank account to my recipient in Australia’s bank account, and for cash collection funded by a bank transfer, the cost is $4.99. ²

To make sure you get the best deal for your needs, it’s worth playing around with the options a little so you can see the different cost combinations. Also, don’t forget that you might incur further charges — such as a cash advance fee — if you pay using a credit card. This depends on the policy of your card issuer.

Once you’ve worked out the fees you’ll be charged upfront by Xoom, you have half the picture. However, to really understand if the transfer is good value for you, you also need to know the exchange rate used.

It’s important to check the exchange rate that Xoom will use for your payment. That’s because Xoom make money on the exchange rates they use, as well as the upfront fees they charge. Here’s what they say about it:

“In addition to the transaction fee, Xoom also makes money when it changes your send currency into a different currency.”²

What that means is that Xoom take the mid-market exchange rate — the one you’ll find if you google your currency or use an online currency converter — and add a markup.

Xoom then keep the markup as profit, in addition to the upfront fees you’ve already paid. This isn’t a transparent charge — and it can mean you pay more than you have to for your international payment.

| The mid-market rate is the average of the global buy and sell rates of a currency. It’s the rate that money transfer providers and banks use to trade currencies among themselves. It’s also the rate you will find on sources such as Google, XE and Yahoo Finance. When you buy or exchange currency as a customer, a markup is usually added by the provider. This can be considered an additional fee, as that is the effect it will have on the customer. To get an understanding of the true cost of your transfer or exchange - make sure you compare how much money ends up on the other side, for the amount that you are paying. |

Although it is fairly common for banks and international payment services to add a markup to the exchange rates they pass to customers, you may find a better deal out there.

Try TransferWise, to see if you can get a cheaper transfer. All international payments are made using the mid-market exchange rate, and there is just a small upfront fee to pay for each transaction. It’s safe and convenient, and can work out much better value than services which hide a charge in the exchange rate used.

If you make and receive international payments often, you might be even better off if you look at the multi-currency borderless account from TransferWise, too. This flexible new account lets you hold your money in any of over 40 different currencies, and make and receive payments easily. You can then switch between currencies using the real exchange rate, whenever you need to, for just a small transparent fee. You can also get the TransferWise multi-currency debit card, which you can use to pay for goods and services all over the world.

Which countries can I send money to with Xoom?

You can send money with Xoom to over 70 countries all around the world.¹ Here are some of the countries you can send money to:²

  • Australia
  • Canada
  • China
  • France
  • Germany
  • Hong Kong
  • India
  • Ireland
  • Italy
  • Japan
  • Mexico
  • New Zealand
  • Singapore
  • South Africa
  • United Kingdom

Xoom money transfer speed

The length of time it takes for your payment to be received depends on a number of factors — including where you’re sending money to, how it will be received, and how you fund the transfer. Large transfers over $10,000 also tend to take longer to be processed.

Xoom says that most money transfers are received in minutes. However, some payments will take a few days. You can track your money using the Xoom app or website, to see when it should be received.³ ⁴

Ways to transfer your money

There are a few different options, if you want to send money with Xoom - and you can also choose how your recipient gets the payment.⁵ ⁶

Ways to send money Ways to receive money
Send money online using your credit or debit card Direct deposit into your recipient’s bank account
Send money online using a bank transfer Have your recipient collect the payment in local cash from an agent near to them
Send money using your PayPayl account Home delivery service - available in some countries

Xoom customer service experience

You can get in touch with Xoom’s customer contact team by phone, in either English or Spanish, 24 hours a day. There’s also an option to email a question if you need to. For common questions, there’s a large FAQ section available on the website, which might give you everything you need.⁷

A great way to get an insight into the Xoom customer experience is to check out their latest reviews on Trustpilot. Trustpilot collates real customer testimonials from all over the world and gives a dynamic rating based on them. At the time of writing, Xoom has a 5 out of 5 star rating — see more by clicking on the source link below.⁸

Whether you want to send some money home to a friend or family member, make an international payment to cover the costs of a vacation, or you need a quick source of money overseas because you live and work abroad, you’ll want to find the best international transfer service for your needs. Xoom has a fairly complex fee structure, including costs rolled into the exchange rate offered, so you’ll need to look carefully at what your transfer really costs before deciding to go ahead. Compare the costs to the same transfer through TransferWise, to see if you can save.


  1. Xoom help page - basics
  2. Xoom ‘send money’ page
  3. Xoom help page - when will my money get there
  4. Xoom help page - how much time will it take to send over 10,000 USD
  5. Xoom help page - how can I pay
  6. Xoom money transfer page
  7. Xoom customer support contact
  8. Trustpilot review of Xoom

All sources checked on the 6 June 2019

This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.

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