Advantages and Disadvantages of Xoom Money Transfer

Xoom, a PayPal service, offers fast digital money transfers, but it’s not without its shortcomings. Users often criticize Xoom for its relatively high fees compared to other money transfer services. Furthermore, its exchange rates include a marked-up margin, which means recipients may receive less money than with services offering true mid-market rates. Xoom also has lower transfer limits, which can be restrictive for users needing to send larger amounts. Additionally, while it covers many countries, its services are not as widespread as some competitors. Lastly, users have noted occasional delays in transactions and rigorous security checks that can slow down the transfer process.

Xoom has carved a niche in the competitive landscape of international money transfers. It offers a range of services that allow users to send money, reload phones, and pay bills across the globe. While Xoom is praised for its speed and convenience, it’s essential to weigh its benefits against its drawbacks to determine if it’s the right service for your financial needs.

Pros of Xoom Money Transfer

Speed of Transactions

One of Xoom’s standout features is the speed with which it processes transactions. Most transfers are completed within minutes, making it an excellent option for those who need to send money urgently.

Multiple Transfer Options

Xoom offers diverse transfer options, including sending money to bank accounts, debit cards, digital wallets, or for cash pickup. This versatility ensures that users can choose the method most convenient for them and their recipients.

Global Reach

As part of the PayPal family, Xoom benefits from a broad international reach, allowing money transfers to a large number of countries worldwide.


Xoom users can execute transactions online or via the mobile app, providing convenience and accessibility. It also allows for phone recharges and bill payments, which adds to the utility of the service.

Cons of Xoom Money Transfer


While Xoom offers speedy transactions, it is not the most cost-effective option available. The fees for money transfers can be high, particularly for certain payment methods like credit cards, which also incur higher fees due to cash advance charges by many card issuers.

Exchange Rates

Xoom’s exchange rates are typically not as competitive as those offered by some other digital transfer services. This can make a significant difference in the total cost of sending money, especially in larger amounts.

Transfer Limits

Xoom imposes transfer limits, which can vary depending on the user’s transaction history, the recipient’s location, and the payment method. While these limits are generally reasonable, they might not accommodate larger transfers that some users may need.

Dependency on Payment Methods

The speed and cost of transfers with Xoom can greatly depend on the chosen payment method. Transfers funded by PayPal balances or bank accounts tend to be cheaper and can process quickly, but those funded by credit cards or other means might experience delays and higher fees.

How much does Xoom charge to transfer money?

Xoom’s fees vary depending on several factors, including the amount being sent, the destination, the currency, and the payment method (bank account, credit card, or debit card). Transfers funded by bank accounts generally have lower fees, while those funded by credit cards tend to have higher fees due to additional cash advance fees that may be charged by credit card companies. It’s best to use Xoom’s fee calculator on their website to get an accurate estimate for your specific transfer.

Is Xoom a safe way to transfer money?

Yes, Xoom is considered a safe way to transfer money. As a service owned by PayPal, a well-established and trusted leader in financial transactions, Xoom adheres to high security standards. It uses encryption and other security measures to protect user data and financial information.

How long does it take to transfer money with Xoom?

The time it takes for a Xoom money transfer can vary. Many transfers are completed within minutes, especially if sending to a recipient’s bank account or digital wallet. However, the timing can depend on the destination country, the payment method, and the receiving institution. Some transactions might take longer due to banking hours or compliance checks.

Can I send money to a bank account using Xoom?

Yes, you can send money to a bank account using Xoom. Xoom supports bank transfers to numerous countries around the world. This method is often one of the quickest and most cost-effective ways to send money via Xoom.

Xoom is a robust choice for anyone looking to send money quickly and efficiently to various parts of the world. Its integration with PayPal, variety of transfer methods, and quick processing times make it highly appealing. However, users should be mindful of the fees and exchange rates associated with their transactions, as these can add up, especially in frequent or large transfers. Always compare the costs and benefits of different money transfer services to ensure you are getting the best deal for your specific needs.


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