Xoom Money Transfer [What Is It and How Does It Work]
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According to the Migration Data Portal, an estimated USD 857 billion was sent worldwide in remittances during 2023. People working abroad, especially in the USA, send money home to support their families. They need a secure, fast, and convenient way to send money overseas and pay bills. One such way is a digital service like Xoom.
Now you might wonder: “What is Xoom? Doesn’t PayPal do the same thing?” Not exactly. While both services are owned by PayPal, Xoom is designed specifically for international money transfers and remittances, whereas PayPal handles both domestic and international payments. If you want to learn how to send money with Xoom, its main features, and important considerations, keep reading.
What Is Xoom?
Xoom is a digital financial service owned by PayPal that allows users to send money to over 158 countries worldwide. In addition to money transfers, users can even pay bills online, reload mobile balances, and even arrange cash pickups or home deliveries in some regions with the mobile app or on the web version.
Xoom supports several ways for sending money internationally, including bank transfers, credit and debit card options, and PayPal balance. Recipients can receive money directly into their bank accounts, digital wallets, or collect cash at one of Xoom's local partner locations.
Key Features of Xoom Money Transfer
Now that you know what this service is, let’s look at its key advantages more closely.
Transparent Fees and Exchange Rates
Xoom displays the transaction fee and the amount the recipient will receive before you confirm the transfer. However, note that the exchange rate shown already includes a currency conversion spread (markup). This isn’t technically a hidden fee, but it means the effective rate you get is slightly worse than the mid-market rate, so always double-check the “amount to be received” carefully.
Fast Delivery Times
Xoom transfers are known for their speed. Most cash pickups and mobile wallet transfers arrive within minutes, while bank deposits typically take 1–2 business days, though this timeframe can vary by recipient’s destination country, and financial institution.
Security and Tracking
Is Xoom safe to use? Absolutely. Xoom, as a PayPal service, benefits from advanced encryption, fraud monitoring, and compliance with global financial standards. In addition, users can track their transfers in real time via the mobile app or website and receive instant notifications about their progress and delivery status.
Money-Back Guarantee
If the recipient doesn’t get the transfer, don’t worry: Xoom offers a refund guarantee if the issue occurs on their side. This promise enhances trust and helps users feel secure when sending money internationally.
How Does Xoom Work
First of all, Xoom is part of the PayPal system. If you sign up through the Xoom website, it automatically creates a PayPal account for you. If you already use PayPal, you can log in directly without re-registering.
Secondly, it’s important to understand that there’s no such thing as Xoom wire transfer. The service does offer bank deposits that allow you to get money into a bank account, but it relies on its own network of global partners and technology to complete fast, secure international transactions.
Here’s a step-by-step guide to send money using Xoom:
Step 1: Log In or Sign Up
Open the Xoom app or website and log in. If you already have a PayPal account, simply use your existing PayPal login credentials. New users can create a new Xoom account in minutes. Once registration is complete, click “Send money.”
Step 2: Choose Destination and Amount
Select the destination country from the list to which you want to send money. Then, enter the sum you wish to send. You’ll see the final amount your recipient will receive in their local currency, the exchange rate being used, and the transaction fee on-screen.
Step 3: Determine the Receiving Method
Depending on the recipient’s country, you’ll have one or several delivery options. Select the one that best suits their needs.
- Bank Deposit: Direct transfer to a local bank account.
- Cash Pickup: The recipient collects money at a local partner location (e.g., bank or retailer).
- Digital Wallet: Funds are sent to a mobile money account.
- Home Delivery: Cash is delivered to the recipient’s address (available in select regions).
Step 4: Enter Recipient Information
You’ll be asked to provide a recipient’s details. Required information varies depending on the chosen receiving method. For example, when sending a bank transfer, you’ll need to enter the bank name and Account Number/IBAN. In case of digital wallet transfers, the wallet account number is enough. However, regardless of payment method, you’ll almost always need to provide the recipient's full legal name, address, and phone number.
Step 5: Choose Your Payment Method
Decide how you want to fund the transfer. Here are the available options:
- PayPal Balance: Pay with funds from your linked PayPal account through Xoom, a PayPal service, for fast transfers.
- Bank Account: You may pay directly from your bank account. This option may result in lower fees, though processing times can sometimes be longer.
- Debit or Credit Card: This option is fast, but you may incur a cash advance fee from your card issuer.
Step 6: Review and Send
Review all the details of the transfer, including the send amount, fee, exchange rate, final receiving amount, delivery method, and recipient information. After making sure everything is correct, click “Send” to complete the transaction.
Step 7: Track Your Transfer
After sending, you'll receive an email with a tracking number. Using this number, you can track the progress of your transfer in real time via the Xoom website or mobile app. You will also get notifications when the money has been delivered.
Possible Problems and Challenges with Xoom
Every service has potential drawbacks depending on the user’s needs and a specific customer. Knowing these in advance helps you decide if Xoom is suitable for you.
1. High Fees and Costs
The company applies a markup, called a "currency conversion spread," to the wholesale mid-market exchange rate. This means the rate you see is slightly worse than the actual rate Xoom obtains. This difference acts like a hidden fee and can significantly reduce the amount your recipient receives, especially for large transfers.
Typically, fees depend on the destination country, transfer method, payment method, and amount sent. If you pay with a credit or debit card, the transaction fee will be higher than when using a PayPal balance.
2. Restrictive Sending Limits
The Xoom transfer limit determines how much money you can send per transaction, per day, per month, or over six months, according to your verification level.
The lowest limits are set for new or basic accounts (Level 1), which can be restrictive for people who want to send large sums immediately. You can upgrade to Level 2 or Level 3 for higher limits by providing additional personal and financial documentation, such as SSN/Passport, proof of address, pay stubs, or bank statements.
Current sending limits for the USA:
Level | Daily Limit | Monthly Limit | 6-Month Limit |
|---|---|---|---|
1 | $2,999 | $6,000 | $9,999 |
2 | $10,000 | $20,000 | $30,000 |
3 | $50,000 | $60,000 | $100,000 |
3. Limited Service and Country Coverage
Some Xoom services, such as cash pickup or bill payment, are available only in selected countries. Xoom is a service that allows you to send money from a limited number of countries, including the US, Canada, the UK, and members of the European Economic Area, to a wide global network. However, you cannot initiate transfers from all countries, so always check availability before planning a transfer.
Conclusion
So, what is Xoom.com? In short, it is a platform that makes global money transfers fast, secure, and convenient, particularly for personal payments. However, it is better suited for smaller or medium-sized transfers rather than high-volume transactions. Always verify exchange rates, destination availability, and transfer limits to avoid unexpected fees. Overall, with careful planning, Xoom can be a reliable tool to help family members, pay bills from abroad, or manage international expenses effectively and safely.
