Xoom vs. PayPal

The rapid pace of Globalization and Digitalization has fuelled the rise of payment platforms that help people send money and remittances across the globe. This was especially evident during the COVID-19 pandemic when over 40% of adults globally made their first online payments using a card, phone, or over the internet. Sending money across borders has never been simpler, and many options cater to every niche. Our article will cover two big names in this space- Xoom and PayPal. While both services are owned by the same company—PayPal Holdings Inc.—they cater to slightly different needs. We’ll take a closer look to define their differences and how to best use them in your financial transactions.

• Xoom is a specialized service that is tailored for international money transfers. It was acquired by PayPal in 2015 and has since blossomed into a top platform that allows users to send money, pay bills, and recharge mobile phones in over 160 countries. It is popular among individuals who need to send remittances abroad.
• On the other hand, PayPal covers a wider range of transactions while also facilitating cross-border payments. With PayPal, users can send and receive money domestically and internationally, pay for goods and services online, and even manage invoices and recurring payments. PayPal currently operates in over 200 countries and supports multiple currencies.

• Xoom’s focus on international transfers makes it ideal for individuals looking to send money to friends and family in other countries as remittance. It also offers bill payments and mobile recharges, making it a comprehensive solution for cross-border financial needs.
• PayPal, in contrast, is more versatile and caters to both personal and business transactions. It’s commonly used for online shopping, freelance payments, and small business transactions. While PayPal also supports international transfers, it’s less specialized in this area than Xoom.

• Xoom’s fees can vary based on the destination, the payment method, and the amount sent. Xoom charges a margin on the exchange rate, but it is the cost-effective option between the two for remittance payments.
• PayPal also charges fees for international transfers, including a percentage of the transaction amount plus a fixed fee depending on the country. PayPal’s exchange rates are often more expensive than Xoom.

• Xoom offers quick transfer speeds as a specialized money transfer service, with most transactions completed within minutes. However, bank transfers can take longer.
• PayPal’s transfer speed varies depending on the destination and the method used. Domestic transfers are usually instant, but international transfers can take 3-5 business days. The speed also depends on if the recipient has a PayPal account.

Both Xoom and Paypal are known for their user-friendly interface, which provides a straightforward process for sending money. Their services are available via their website and respective mobile apps, which support multiple languages for a global audience.

Which One Should You Choose?

• Xoom is the ideal choice for those who regularly send money internationally. Xoom’s focus on remittances, quick transfers, and additional services like bill payments make it a strong choice for those supporting family through their payments abroad.
• PayPal is the better option if you’re looking for a versatile payment platform that handles a variety of transactions, from online shopping to receiving freelance payments. PayPal’s wide range of services and global reach make it ideal for personal and business use.

In conclusion, Xoom and PayPal offer very similar services, and the right choice comes down to your specific needs. Understanding the nuances of each can help you make informed decisions and manage your finances more effectively.