Xoom, a PayPal company, is a money transfer service that allows you to make international digital payments that are quick, easy and secure. If your loved ones are scattered across the globe, Xoom lets you send money, pay bills and reload minutes on mobile phones from afar. Xoom services are available in 132 countries, meaning thereâs a pretty solid chance that the location youâll need falls under its umbrella.
In this review, weâll walk you through the basics of sending money through the platform and help you decide if it meets your needs.
Xoom was founded in 2001, and PayPal acquired the company in 2015 for roughly $1.1 billion. In 2016, Xoom upgraded its features to allow recipients to request funds and by 2017, the company expanded its presence from 40 receive markets to 67 markets.
Xoomâs international money transfer services have also been integrated into PayPal, making it easier for you to send money outside the U.S. on the PayPal platform as well.
According to its website, Xoom and PayPal have a âshared visionâ of making the international payment platform accessible to millions more people throughout the world, so expect it to grow in the future.
|How long does a transfer take?||Most transfers are completed in minutes, but the process can take up to a few days.|
|Where can you send money?||Xoom allows you to send money to recipients in 132 countries.|
|How much can you send?||Sending limits are set at three different levels (for more detail, see the chart below). Top tier senders in the U.S. â Level 3 â can send up to $100,000 USD within a 180-day period.|
To send money via Xoom, youâll need to create a free account or log in with your PayPal account. If you create an account, youâll be asked to create a password and provide basic information, including your name, email address, phone number and country of residence. Afterwards, youâll receive a verification email to activate your account. To connect a payment source to your account, add a bank account, credit card or debit card, and use it in a transaction. Payment sources can be updated or deleted from your âMy Accountâ page.
Senders are categorized into three different levels. Each level has a limit on the amount of money youâre allowed to send during a certain time period. Different information and documents are required to reach each level. During your transaction, Xoom may ask questions, and if you need to provide more information, the company will email you with instructions.
Hereâs a look at the sending limits and requirements for U.S. residents, as per the providerâs website.
|Level||24-hour limit||30-day limit||180-day limit||Required information and documents|
|1||$2,999 USD||$6,000 USD||$9,999 USD||Sender profile information|
|2||$10,000 USD||$20,000 USD||$30,000 USD||Social Security Number or passport|
|3||$50,000 USD||$60,000 USD||$100,000 USD||
In most cases, the recipient will receive the funds minutes after theyâre sent, but it can take a few days. Several factors can affect transfer times, including the country where your money is headed, the method in which funds are received â either bank deposit, cash pick up or home delivery â and the payment type â from a bank account, debit card or credit card.
In addition to sending limits, this provider also caps the amount of money recipients can receive, based on the sending level of the person(s) transferring the funds â do note that the receiving limits apply across senders. Any transaction that exceeds a recipientâs designated maximum will be canceled.
Hereâs a look at the receiving limits from U.S. senders, as per the providerâs website.
|Level 1 senders||$15,000 USD||$25,000 USD||$55,000USD|
|Level 2 senders||$15,000 USD||$25,000 USD||$55,000 USD|
|Level 3 senders||$75,000 USD||$90,000 USD||$120,000 USD|
Additionally, Xoomâs partners â these include banks, cash pick up locations and home delivery services â have restrictions that vary by country. These could include the amount of money that can be paid in a single transaction or to a recipient in a certain time period.
|Fees and Penalties|
|Transfer fees||Xoom charges a transaction fee to send money internationally. Fees can vary according to several factors:
For certain destination countries, you can avoid fees by paying with a bank account, but not every country.
Xoomâs variable fee schedule is on par with other money transfer companies. Itâs very common for fees to be calculated based on the criteria used by Xoom. For example, to send $1,000 to the United Kingdom, there are no fees to send from a bank account, but a $30.49 fee to send funds from a debit or a credit card.
WorldRemit and MoneyGram are international money transfer companies providing similar services to Xoom.
WorldRemit is based in London, with regional offices in the U.S., Canada, Australia and New Zealand. Since it serves more countries than Xoom, it could be a good alternative if your destination country isnât on Xoomâs list.
MoneyGram could be a good alternative to Xoom if you need to make both domestic and international transfers. Since its services are available in more than 200 countries and territories, it could also be an option if your destination country isnât part of the Xoom network.