Xoom vs Wise

Reliable and efficient international money transfer services have become essential in an increasingly globalized world. Whether you send money to family overseas, pay for international services, or manage business transactions across borders, choosing the right platform is crucial.

Two popular options that have gained significant attention are Xoom and Wise (formerly TransferWise). Both offer competitive features, but which one is right for you? This article provides a detailed comparison to help you make an informed decision.

Overview of Xoom

Xoom, a PayPal service, is designed to send money, pay bills, and reload phones internationally. Established in 2001, Xoom was acquired by PayPal in 2015, which helped it expand its services and reach. Xoom operates in over 130 countries, making it one of the most extensive networks for international transfers.

Also read: How To Delete PayPal Account

Xoom’s primary appeal lies in its speed and convenience, providing a sense of ease for users. The service allows users to send money to recipients' bank accounts or mobile wallets or for cash pickup at thousands of locations worldwide. Xoom also offers the ability to pay utility bills or reload prepaid mobile phones in select countries, making it a convenient choice for many.

Overview of Wise (TransferWise)

Wise, initially known as TransferWise, was founded in 2010 to provide fair and transparent international money transfers. It operates on a peer-to-peer system that matches transfers with other users, enabling it to offer mid-market exchange rates with low, transparent fees.

Also read: Transferwise VS RemitBee: A Comparison

Wise is available in over 80 countries and supports more than 50 currencies. Its primary service is international bank transfers, but it has also expanded into multi-currency accounts with its Wise Borderless Account, which allows users to hold and manage money in multiple currencies.

Xoom:

Xoom charges a fee for every transaction, depending on the destination, the payment method, and the amount sent. Generally, fees are higher when paying with a credit or debit card than using a bank account. Additionally, Xoom often applies a margin to the exchange rate, making the transfer more expensive overall.

For example, sending $1,000 from the United States to India through Xoom might incur a fee of $4.99 if paid through a bank account and up to $30 if paid via credit card. The exchange rate includes a 2-3% markup over the mid-market rate.

Wise:

Wise is known for its transparency in fees and exchange rates, providing a sense of security for users. It charges a small percentage of the transfer amount plus a flat fee, displayed before you initiate the transfer. Importantly, Wise offers the mid-market exchange rate, which you find on Google or financial news websites, without any markup, ensuring users know exactly what they're paying for.

For instance, sending $1,000 from the United States to India via Wise would cost around $7.50, with the mid-market exchange rate applied. This can result in significant savings, especially for larger transfers.

Xoom:

One of Xoom's biggest advantages is the speed of its transfers. In many cases, money can be picked up or deposited in a bank account within minutes. The speed, however, can vary depending on the destination country and the payment method used. Credit card payments are generally processed faster, while bank account transfers may take longer.

Wise:

Wise’s transfer times are generally slower than Xoom’s, especially for bank-to-bank transfers. While some transfers can be completed within a few hours, others might take 1-2 business days. The speed depends on factors such as the currencies involved, the payment method, and the countries between which the transfer is made. Wise prioritizes low cost and transparency over speed, which may be a consideration for those who need to send money urgently.

Xoom:

Xoom has a broader reach, supporting over 130 countries and allowing transfers in multiple forms, including bank deposits, cash pickups, and mobile wallet transfers. Xoom’s extensive network makes it a versatile option for users who need to send money to regions with limited banking infrastructure.

Wise:

Wise is available in over 80 countries and supports more than 50 currencies. While it doesn’t offer cash pickup or mobile wallet transfers, its focus on bank-to-bank transfers ensures that it can provide competitive rates and fees in the markets it serves. Thanks to its Borderless Account, Wise is particularly well-suited for users who need to manage money across multiple currencies.

Xoom:

Xoom is designed for ease of use, with a simple interface that allows users to send money quickly. Integrating with PayPal means users can easily send money using their PayPal balance. Xoom also offers customer support via phone, email, and chat, with multilingual support for international users.

Wise:

Wise also offers a user-friendly experience, with a transparent process that shows users the exact fees and exchange rates before they confirm the transfer. Wise’s mobile app and website are well-designed, allowing users to easily manage their transfers and Borderless Accounts. Wise provides customer support through email, chat, and phone, but some users have noted that response times can vary.

Xoom:

As a PayPal service, Xoom benefits from PayPal’s robust security infrastructure. Xoom uses encryption and advanced security protocols to protect users’ data and transactions. Additionally, Xoom is regulated by financial authorities in the countries where it operates, providing users with added peace of mind.

Wise:

Wise is also highly trusted, with regulatory oversight in multiple countries, including the UK’s Financial Conduct Authority (FCA) and the US Financial Crimes Enforcement Network (FinCEN). To protect user data, Wise uses industry-standard security measures, such as two-factor authentication and encryption.

Which Should You Choose?

The choice between Xoom and Wise depends on your specific needs:

• Choose Xoom if you need to send money quickly to a broad range of countries, especially if your recipient needs cash pickup or mobile wallet access.

• Choose Wise if you want the best exchange rates, low, transparent fees, and the ability to manage money in multiple currencies through a Borderless Account.

Xoom and Wise offer valuable services but cater to slightly different audiences. Understanding your priorities—speed, cost, or coverage—will help you choose the service that best meets your international money transfer needs.

While both Xoom and Wise offer compelling services for international money transfers, there is another contender that might be a better fit for specific users: RemitBee. This Canada-based money transfer service has been gaining traction for its competitive features, particularly for users who regularly send money from Canada to other countries.

RemitBee also provides a user-friendly experience and robust customer support, making it a strong competitor in the international money transfer market.

Why Choose RemitBee?

• Lower Fees: RemitBee is known for its low fees, which can be even more competitive than Wise and Xoom, especially for transfers from Canada to countries like India, the Philippines, and Sri Lanka. RemitBee offers fee-free transfers above certain thresholds, which can be a significant advantage for those making regular or larger transactions.

• Better Exchange Rates: Like Wise, RemitBee offers mid-market exchange rates, ensuring you get more value for your money. This can substantially affect the amount your recipient receives, especially over multiple transactions.

• Speed: RemitBee combines the speed of Xoom with the cost-effectiveness of Wise. Transfers can often be completed within minutes to a few hours, depending on the destination and payment method. This quick service is particularly beneficial when urgency is a factor.

• Multi-Currency Accounts: Like Wise’s Borderless Account, RemitBee offers a multi-currency wallet, which allows users to hold, manage, and transfer funds in different currencies. This is ideal for those who operate across borders regularly, whether for personal or business reasons.

• No Hidden Costs: RemitBee prides itself on transparency, with no hidden fees or exchange rate markups. The platform is designed to show you exactly what you’re paying and what your recipient will receive, ensuring peace of mind and trust.

• Customer Support and Security: RemitBee offers robust customer support with multilingual services that cater to its diverse user base. It also employs advanced security measures, including encryption and regulatory compliance, ensuring that your money and data are always protected.

The Final Verdict

While Xoom is excellent for those who prioritize speed and Wise for those who value low fees and transparency, RemitBee offers a balanced approach that can save you money while delivering fast and secure transfers. For Canadians, RemitBee stands out as a superior option, combining the best features of both Xoom and Wise into a single platform. If you’re looking for an alternative offering better rates, lower fees, and quicker transfers, RemitBee is worth considering for your next international money transfer. Sign up now.