Xoom review: What you need to know

Paysera is the Eastern Europen answer to borderless accounts. Despite its potential, however, there are cheaper services out there.

Average cost:	0.44%
Transfer speed:	1-3 days
Receiving countries:	30
Trustpilot score:	5 stars
Our score:	4 stars
Website	xoom.com

Xoom has been around for quite some time. It shares much of its DNA with its parent organisation, PayPal, and service is relied on by many people for quick and painless international remittances.

With a well designed online experience and complementing mobile apps, Xoom has a wealth of resources to drive new customers to their product and present them with a memorable experience.

To learn more about this service and see if it’s right for you, read on for our in-depth Xoom review.

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What is Xoom Money Transfer?

So, what is Xoom money transfer all about? Let’s begin our Xoom review with some general information about the service.

Service profile

Xoom was founded in 2001 by Kevin Hartz, as a way for immigrants to send money abroad. Using its close ties with PayPay (the two companies shared common investors at the time), Xoom was able to grow its business by being better, cheaper and faster than its competitors. Operating from their office in San Francisco, the service completed almost $2 billion worth of payments by the end of 2011.

After relying solely on venture capital for many years, Xoom was listed as a publicly-traded company in 2013. Then in 2015, after only two years of being traded on the NASDAQ, Xoom was acquired by PayPal for $1.09 billion. This allowed Xoom to handle international remittances of behalf of PayPal’s customers, while PayPal focuses on domestic payments.

Xoom’s operations are overseen by John Kunze, who is Vice President of Global Consumer Products. Jasmine Lee is Chief Financial Officer, and Julian King is General Manager. Brent Williams is VP of Payments, who works alongside Michel Kattan as Marketing Director. Since Xoom was acquired by PayPal, the division has been supported by group CEO, Dan Schulman.

Xoom company head office

Xoom company is headquartered at the following address:

Xoom, A PayPal Service
425 Market Street
San Francisco, CA 94105
United States

International offices

Xoom has established local offices in the following countries:

• Guatemala

Supported currencies

Xoom supports the transfer of funds to approximately 30 countries. For the most part, the service facilitates its transfers using the SWIFT network, which allows it to deliver funds to all corners of the globe. The downside to this network is that there may be additional charges incurred by the recipient, of which Xoom has little control of.

Transfer limits

Xoom has a minimum transfer value of £1, which is excellent news if you only need to transfer a small amount. The maximum transfer limit is £10,000, however, this will vary depending on the receiving country. In addition to single-transfer limits, the following aggregate-transfer limits apply:

• £25,000 over 24 hours
• £50,000 over 30 days
• £100,000 over 180 days

Xoom fees and exchange rates

What are Xoom fees and exchange rates? It will take a few minutes to explore the foreign exchange market, so we can properly consider this question.

How the foreign exchange market works

Let’s begin with how the foreign exchange market works. Banks and other money transfer services will buy foreign currency at a price very close to the mid-market rate. They will then sell this currency to you, the customer, for a higher rate than they bought it for, taking a margin in between – known as “the spread”.

The spread is essentially a hidden cost that is not disclosed to you during the transaction. Then, in addition to the spread, some services will charge a transaction fee on top – which is typically the fee that they quote to you. In any case, the total cost of a transfer for you, the customer, is the combination of the two; the spread + transaction fee.

Q. Does the Xoom exchange rate include a spread?
A. Yes, there is a spread.

Q. What about Xoom fees?
A. Yes, there is a transaction fee of £1.99.

But for the moment, don’t pay too much attention to the details. Rather, for the purpose of our Xoom review, let’s consider the overall cost.

Why focus on overall cost?

If you focus on the spread or transaction fee in isolation, it is easy to become lost in marketing gimmicks. Instead, it is more helpful to consider the overall cost when these factors are combined. For example, a typical bank will charge up to 5% of the overall transfer value in spread and transaction fee to complete a transfer on your behalf. Not great.

But what about Xoom Money Transfer? To determine its overall cost we need to compare a transfer with a benchmark, the mid-market rate, which in theory has no cost. Practically speaking, it is unlikely that you will ever receive the equivalent of the mid-market rate, however, your goal should be to get as close as possible.

If you can achieve a total cost of less than 1% of the overall transaction value then you are on the right track. However, it really depends on what your needs are and if you are willing to pay a little bit extra for additional features, advice, or research. To find out the mid-market rate of any currency pairing, use this calculator at xe.com.

What is the average cost of Xoom?

Xoom has an average cost of 0.44%. To calculate this figure, we received three quotes to exchange US Dollars (USD) into Australian Dollars (AUD) – for low, medium, and high values. The overall cost of each transaction was then compared against the mid-market rate and represented as a percentage of the transfer value.

Here is the calculation:

Transfer value	Overall cost
£1,000 (Low)	0.44%
£2,000 (Medium)	0.44%
£5,000 (High)	0.44%
Average cost	0.44%

An average cost of 0.44% means that for every £1,000 sent, on average £4.40 will be lost in spread + fees. By using this figure, we aim to make a fair representation of Xoom across a range of transfer values. Of course, it is not a perfect measure for all situations, but it is helpful for comparative purposes.

Important note on SWIFT: You should be aware that any transfer conducted via the SWIFT network may incur additional hidden charges by correspondent banks; the exact cost depending on the amount of the transfer and the recipient bank. In my experience, these fees can be as high as £25 per transaction.

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Xoom review: Comparison chart

Now that you know about the average cost of Xoom, how does this compare to other services in the market? To help you determine its relative competitiveness, we have prepared a chart. Beside the name of each service, we have listed its average cost, speed of transfer, receiving countries, and our review score – sorted from highest to lowest.

To sort this chart by a specific column, click its respective heading. If you are reading on mobile, you may need to scroll horizontally to view all fields.

If you would like to learn more about the rationale of our Xoom review, take a look at our review methodology.

Xoom money transfer time

A typical transfer with Xoom takes 1-3 business days, from sending to receipt. The exact duration will depend on a few factors, including the currency pairings involved, the transfer value, as well as the particular systems of the sending and receiving bank.

Key features

How do payment features affect our Xoom review? Let’s take a look at its capabilities.

Spot contract

A spot contract consists of a single payment from one currency to another at the currently available exchange rate. If you need to send money right away, simply login to the Xoom money transfer app or website and with a couple of clicks a transfer can be arranged.

Cash pickup

A cash pickup payment allows you to transfer money to a person in another location, whereby they can pick up the payment in cash – typically from a physical branch. It is the easiest way to send money to family or friends who need quick and flexible access to funds.

Xoom money transfer customer service

Xoom money transfer customer service can be contacted by phone or email. Here are the contact details for a couple of its offices:

+44 131 297 6784 (United Kingdom)
+1 877 815 1531 (United States)
customersatisfaction@xoom.com

In our experience, we found the Xoom customer service staff to be friendly and helpful. We did not have to wait too long to speak with someone on the phone, and our queries by email have been answered in a prompt and professional manner.

Is Xoom safe?

As a customer, is Xoom safe to use? Let’s take a look at some of the security measures adopted by the service.

Government regulated

Xoom is regulated by FinCEN in the United States. As a subsidiary of PayPal, it holds money remittances licences in each of the jurisdictions of its operations.

Customer funds are held in trust

In accordance with the standards imposed by government regulators, the funds of Xoom customers are held in segregated accounts and are kept apart from the company’s own operating accounts. This ensures the security of customer funds, should Xoom encounter financial difficulty.

Website is securely protected

The Xoom website is protected with TLS encryption, which prevents sensitive data from being intercepted during your visit. You can confirm that this is in place by recognising a green padlock next to the website’s URL on your browser.

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Xoom complaints? A look at its reputation

Are there any Xoom complaints? Let’s take a look at its reputation.

Trustpilot

As of publication, Xoom has received over 21,000 reviews on Trustpilot with an average rating of 4 out of 5 stars; representing a positive experience in 91 percent of interactions with its customers

Here are our observations of the feedback posted:

Social media

Upon viewing the Facebook and Twitter feeds of Xoom, we can see a range of varied interactions between the service and its customers. It appears that any queries raised by customers are addressed promptly. Typically, Xoom will move the conversation into private messaging to rectify any issue.

Mainstream media

The mainstream media reporting of Xoom has generally been positive. Much of their coverage surrounds its recent expansion into Canada, as well as a new marketing campaign with Usain Bolt.

Usain Bolt named global brand ambassador for money transfer service Xoom.

The Drum

Xoom Expands Full Suite Of Send Services To Canada.

PYMNTS.com

Xoom online money transfer experience

How does product design affect our Xoom review? Let’s take a look at its user experience.

Xoom desktop site

The Xoom website has been designed thoughtfully, with special attention being paid to user experience and simplicity. It is available in 6 languages; English, Chinese, French, Portuguese, Spanish, and Vietnamese.

Xoom Money Transfer app

A Xoom money transfer app has been developed for Apple and Android devices. By using the Xoom money transfer app you can access your account at any time and use its core features; such as initiating new payments or tracking the status of in-progress transfers.

Registration process

The registration process is quick and takes around 2 minutes. All you need to do is enter your name, email address and a couple of identifying details. Alternatively, you can sign up with your PayPal account.

Identification requirements

No identification is required to make transfers up to £2,999. If you would like to make larger transfers than this, you will need to provide proof of identification so Remitly can verify your account. Typically this will require providing two types of documents:

1. Photo identification, such as a passport or drivers licence, will allow transfers of up to £10,000 every 24 hours.
2. Proof of funds, such as a bank statement, will allow aggregate transfers of up to £25,000 every 24 hours.

How does Xoom Money Transfer work?

As a part of our Xoom review, we will take you through an example transaction. If you would like some guidance in navigating your own account, you can follow along below.

Step 1 – Sign up and login

Visit xoom.com, sign up and login. To begin a transaction and add your first recipient, click Get Started.

Step 2 – Select method of receipt

First, select how you would like the funds to be recieved and click Continue.

Step 3 – Select payment type

Select your preferred payment method and click Continue.

Step 4 – Enter recipient bank details

If you elected for funds to be received into a bank account, now is the time to enter the relevant details. Click Continue.

Step 5 – Enter recipient name

Enter the personal information of your recipient, including their name and address. Click Continue.

Step 7 – Enter your details

Enter your own personal details and click Continue.

Step 8 – Enter payment details

Enter your payment details and click Continue.

Step 9 – Confirm transaction

The terms of your quote are presented, including the exchange rate and fees applicable. When you are happy to proceed, click Authorize Payment. If you selected bank deposit in a previous screen, now is the time to transfer your funds into the local bank account of Xoom.

Step 10 – Xoom money transfer tracking

When your funds are received by TransferWise, it will complete the final leg of the transfer. You can track its status online or with the TransferWise app. You will also receive email updates throughout the process.

All done!

Finally, once the transfer is complete its status will be updated accordingly. The funds should arrive in your recipient’s bank account shortly.

Please note: Unfortunately, we were not able to test Xoom with a transaction of our own, as we do not have a physical presence in the United States.

Xoom review: Final thoughts

Xoom money transfer appears to be a useful service. It has basic features and some flexible delivery methods. Its rates are competitive, and its fees are low. It has a limited selection of receiving countries but if you fall within its target market, Xoom could be a worthwhile option.

Obviously, the fact that the service is owned by PayPal is a big benefit. If you would like to explore other remittance-style services, take a look at WorldRemit or Remitly. If you are making bank-to-bank transfers, TransferWise may also be suitable. That said, for simple transfers, Xoom should be just fine.

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If you have any questions or feedback about our Xoom review, let us know in the comments below.