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Xoom first started operating as a money transfer service in 2001 and was acquired by PayPal in 2015. The service specialises specifically in money transfers and now allows customers to send money to over 159 countries across the globe, with China, India, Pakistan, Mexico, the Philippines, and the United Kingdom all being popular currency corridors served by Xoom.
What makes Xoom an appealing option is its large disbursing network and multiple different payout options including air-time mobile top-ups and cash pickups. However, Xoom does not always offer competitive fees compared to other money transfer provides in the same field, which is something we'll look into further here.
Quick summary: Wise has better fees, but Xoom covers more countries and offers cash payments
Both of these money transfer providers are extremely well-respected and secure services for sending your money internationally. However, when it comes to fees, Wise is unmatched – the company’s transparent fee structure and commitment to providing transfers at the mid-market rate leaves Xoom’s fees and exchange rate markup looking unfavourable in every comparison.
That being said, if you are sending to a less popular destination or if the option for your recipient to receive your money in cash is a high priority for you, Xoom alone offers cash payouts and provides transfers to over 100 more destinations than Wise.
Which brand has lower fees?
Wise is extremely upfront about its commitment to transparency when it comes to the cost of international money transfers.
Where you will incur charges is through Wise’s fee structure. Their fees are determined by:
The amount you are sending (the larger your transaction, the higher the fee)
Your payment method
Where you are sending the money from (fees may increase if you are sending money from other countries).
The company's fees are made up of a small percentage of the transfer amount, hence higher fees for larger transfers, plus a small fixed fee which can vary depending on whether you opt for a fast or a low-cost transfer, as well as the variables above.
As an example, if you were sending £1,000 to the United States as a low-cost transfer, you would incur a fee of £4.25 - which can be broken down into a fixed fee of £0.75 plus a 0.35% variable fee of £3.49. Sending the same amount to India would have a fee of £4.77 while sending to Kenya would have a £9.58 fee.
✅ Verdict: Xoom has better fees, but charges more on the exchange rate
If we were to judge Wise vs Xoom purely based on their fees, you could certainly argue that Xoom has better rates. However, it’s imperative to keep in mind that while Wise has no markups on the exchange rate - their fee is all you pay - Xoom does add a markup on the exchange rate on top of their fees.
Which brand offers better exchange rates?
One of the biggest selling points of Wise as a transfer service is that they offer international transfers at the mid-market rate, that is, the exchange rate you would see if you were to look it up on Google on any given day.
Often, you will not find a more favourable exchange rate from another provider or from your bank, who often add a markup between 4 - 5% on top of the mid-market rate.
✅ Verdict: Wise offers one of the fairest exchange rates you'll find
Between Wise vs Xoom, Wise excel when it comes to fees: their transparent policy to always offer transfers at the mid-market rate makes them a much more cost-effective choice compared to providers like Xoom, who have fees and more complex exchange rate markups that aren’t clear.
Which brand covers more locations?
Wise currently supports transfers to 59 countries. They also have a ‘Wishes’ page in which users can vote for a currency they would like to transfer money to if it is not currently supported.
✅ Verdict: Xoom has a far larger disbursing network
When comparing Xoom vs Wise, Xoom covers far more currency corridors than Wise, facilitating transfers to 100 more countries. If you are looking to send money to a less well-known destination, Xoom is more likely to be able to fulfill your transfer needs.
Which provider has faster transfer times?
Wise provides the option for ‘fast’ transfers and ‘low-cost’ transfers, clearly indicating that for a fast transfer time, you’ll pay higher fees. For a fast transfer, you can expect your transfer to be received by your recipient on the same day.
For other transfers, the provider says that it should take no more than 2 business days for your transfer to be processed to the recipient’s bank account.
✅ Verdict: It's close, but Xoom promises transfers within minutes
The fastest method to transfer your money will vary depending on a number of the factors listed above, but overall, Xoom does seem to offer faster transfer times than Wise.
Payment options and payouts
The payment methods accepted at Wise include credit or debit cards, online bank transfers, Apple and Google Pay, POLi, and direct bank debits (ACH).
For payouts, the most frequently used option is bank transfers. It should be noted that Wise does not accept cash or cheque payments for any currency.
✅ Verdict: Xoom alone offers cash payouts
Comparing Wise vs Xoom, paying for your transfer is easy and convenient with both providers, but where Xoom just has the edge is by offering cash pickups as a payout option. If paying your recipient in cash is a priority for you (over having the money deposited in their bank account, for example), only Xoom offers this service out of the two.
What do users have to say about each brand?
Wise has over 95,000 reviews on Trustpilot, and a total rating of 4.6 out of 5 (awarded an ‘Excellent’ score on the website).
Overwhelmingly, positive reviews emphasise:
The platform's ease of use
Faster transfers
Affordability
In terms of negative reviews, a fairly frequent concern that crops up is the lack of personable customer service. The company has a big digital presence with a useful help centre, but that focus does make it difficult to find real-time support from a customer service agent if you are facing difficulties.
✅ Verdict: Wise has tens of thousands of positive reviews
Wise is an extremely popular money transfer service with over 8 million users worldwide and as such, it has thousands of excellent reviews to verify their accessibility, low rates, and faster transfer times. When we compare Wise vs Xoom, both providers have all-round positive reviews, but the sheer number of happy customers Wise boasts puts them a step ahead in this aspect.
What brand offers better ease of use, accessibility & security?
The Wise website and app are extremely easy to use - indeed, this is one aspect that is frequently commended on user reviews. In terms of customer support, the platform does provide assistance via live chat, email, and phone, although some users find these options difficult to access on the platform. In addition, the provider supports 12 languages on its website, including English, Spanish, German, Portuguese, Romanian, Japanese, Polish, Russian, Italian, Hungarian, French, and Turkish.
In terms of security, the company has a 2-factor authentication system that sends the user a code to verify a transaction before proceeding. Wise won’t always require additional documents from you to verify your account, but in the cases where they do (for example, if you are sending larger sums), you may be asked for a photo ID, proof of address, or a photo of you holding your ID.
✅ Verdict: It's a tie
Between Xoom vs Wise, both have excellent security and accessibility and are reputable well-known brands that you can trust to keep your money secure when transferring funds with them.
Additional features you might be interested in...
Additional features Wise offers include their Multi-currency Account, which account supports 50+ currencies and gives you your own debit Mastercard®. Essentially, having a multi-currency account means you can get paid in a currency as if you were using a local bank account to avoid unfair exchange rates. The card is specifically marketed towards travellers, expats and freelancers.
Case study: sending a variety of amounts
To give you a feel of what it is like to send money comparing Xoom vs Wise, let us consider the following scenarios when making a transfer from the US to Spain.
Sending $200
Wise will convert your funds at the mid-market rate, adding a set fee of $4.04 for this transfer. You can expect this kind of transfer to take up to 1 working day.
Total received: €167.46
Sending $1000
You'll receive the same mid-market rate for this transfer, but be charged a higher fee of $8.24 for this transfer, still with a predicted 1 working day transfer time.
Sending $20,000
Again, the exchange rate won't charge on a larger transfer, but the fees you can expect to pay will increase. Wise would charge a fee of $91.84 for this transfer. The transfer would take an estimated 2 - 3 days.
✅ Verdict: Wise is more competitive
When it comes to Xoom vs Wise fees, Xoom really doesn't compete with the excellent fee structure and zero exchange rate markup Wise offers. Wise wins this case study by far, offering a quick transfer time and far more competitive rates so more of your money actually ends up in the pockets of your recipient.
Final Verdict - Wise vs Xoom: Who Is Better?
Our recommendation: Wise overall provides a better deal in terms of cost, transfer speeds, and usability - but Xoom covers more countries and alone offers cash payouts and mobile airtime top ups.
Wise offers extremely competitive fees, offering transfers at the mid-market rate with no markups. This, along with the excellent usability of the platform and average transfer times of 1 - 2 days makes it a great option.
Xoom, on the other hand, is still an extremely well-respected and reputable money transfer provider, but it’s fees and exchange rate margins can’t compete with Wise’s transparent fee structure. Aspects that may make Xoom a more appealing option are the large number of countries covered, as well as the option for cash payouts.
