Xoom is one of the more common money transfer companies. You can use Xoom to send money from the US or Canada to over 130 countries around the world. The company often provides among the best rates available, but their pricing is not their strongest point. Depending on the country you’re sending money to, they offer many money transfer options.
One unique feature for which Xoom is highly regarded is its network of delivery options in a select few countries, including the Philippines and Mexico. They are also known for their consistently reliable customer service and fast transfer speeds to many countries.
What are their exchange rates?
Like many other money transfer companies, Xoom’s exchange rates are determined by several factors. These factors include the currency you’re using, the amount of money you’re sending, and the transfer method you use.
Xoom charges markups anywhere from 1%-3% above the mid-market rate. This is a very high exchange rate, as much of the competition charges 1% or less.
Xoom charges an upfront fee for their service, on top of their margins on exchange rates. For the best rates, you should use payment from your bank account in order to receive the best rates. This factor alone can reduce the costs you’ll incur by up to 80%.
What Xoom costs to use?
Using a bank transfer will save you a lot of money when you use Xoom. The fee for using Xoom is often $5 USD or less when you conduct a transfer using bank accounts to most countries, regardless of how much you send.
Let’s use the example of sending money to India from USA. This is one of the lower currency exchange rates you’ll find from Xoom.
If you send $100 USD to India, you’ll first have to pay the upfront $5 fee. The recipient will receive 6,837 Rupees, while the normal exchange rate would get them 6,933 Rupees.
If you send $1000, you’ll have to pay $5 for their upfront fee, and approximately another $6.50 for their exchange rate markup. This brings the total cost up to $11.50, and the recipient would receive 68,372 Rupees, while the normal exchange rate would get them 69335 Rupees.
*These rates are only applicable at the time of writing and are subject to change at any time.
How do I transfer money with them?
Sending money through Xoom is normally fast and easy. After you take the first step by setting up an account, sending money is simple.
With a functioning account, using Xoom is as simple as using Paypal. You use the interfaces on the Xoom website or mobile app to select an amount of money and the currency. After you set the amount of money you need to send, you need to connect with the recipient. Sending money to the same recipient again is a very simple process. Your Xoom account will first need to be linked with a bank account or card, but to save money we’d recommend you use a bank account.
What other products do they offer?
Xoom is owned by PayPal and functions as a money transfer service. They do not offer any additional products. They do however offer a unique feature in several countries in which they help you pay your bills. Xoom can be used to pay utility bills in nine different countries, which is a great service for those living in the countries where it’s available.