Xoom vs. WorldRemit

International money transfers have become a common aspect of everyday life in many countries like Canada, where citizens and foreign workers engage in cross-border payments for business or remittances. This is backed by a consumer survey conducted by Payments Canada, which found that one in five Canadians sent money internationally using their Canadian Bank account—a 33% increase from 2022. The market for such transactions has expanded, with consumers today able to accomplish such tasks with electronic fund transfers using a banking app, Paypal, wire transfers, or dedicated money transfer services.

The subject of this article is two prominent names in the international money transfer business, Xoom and WorldRemit. Both platforms offer users the convenience of transferring money across borders quickly and securely. We will delve into the features, costs, speed, and overall user experience of these big names and help the reader decide the best choice for their money transfers.

About Xoom

Xoom, a PayPal service, has been in the business since 2001, providing a robust platform for sending money to over 160 countries. Xoom's integration with PayPal offers an added layer of trust and convenience for users who are already familiar with PayPal's ecosystem.

About WorldRemit

WorldRemit, established in 2010, has quickly gained traction as a reliable money transfer service. With a presence in over 130 countries, WorldRemit emphasizes low fees, diverse payout options, and a user-friendly interface.

Fees and Exchange Rates

Fees are a critical factor when choosing a money transfer service. Both Xoom and WorldRemit have varying fees depending on the destination, transfer amount, and payment method. Let's dive into the details:

• Xoom: With Xoom, your standard fees on international bank transfers can range from $0 to $4.99, but they may go higher for other payment methods like credit or debit cards. Xoom's exchange rates are competitive but may include a margin over the mid-market rate.
• WorldRemit: Known for its transparency, WorldRemit offers lower fees compared to traditional banks. The costs vary but are typically lower than Xoom's, especially for smaller amounts. WorldRemit's exchange rates are also competitive and often closer to the mid-market rate.

Transfer Speed

Both services excel at providing quick transfers, but the speed can vary based on the destination and payout method.

• Xoom: With Xoom, bank transfers usually take 1-3 business days, while their partnership with local banks translates to almost instantaneous cash pickups and mobile wallet transfers.
• WorldRemit: Like Xoom, WorldRemit offers near-instant transfers for cash pickups, mobile money, and airtime top-ups. Bank transfers generally take 1-2 business days, depending on the recipient's country.

Payout Options

The versatility of payout options can be a deciding factor for many users. Both Xoom and WorldRemit cover a range of payout options that cater to customers worldwide.

• Xoom: Xoom offers bank deposits, cash pickups, and mobile wallet transfers as payout options. The availability may vary by country, but Xoom has you covered for payout to some of the more inaccessible regions of the world.
• WorldRemit: WorldRemit, similarly, provides an extensive array of payout options, including bank deposits, cash pickups, mobile money, and airtime top-ups. This variety and its low fees make WorldRemit a more flexible and economical choice for receiving money.

User Experience

Both platforms prioritize ease of use, but there are subtle differences in their user interfaces and customer support.

• Xoom: Xoom's integration with PayPal works in its favor, allowing a seamless experience for existing PayPal users. The app and website are intuitive, with a straightforward process for initiating transfers. Customer support is available via phone and email, with comprehensive FAQs on their website.
• WorldRemit: WorldRemit's app and website are also designed to be easily navigable with multilingual options and customer support through various channels, including live chat, which can be a significant advantage for non-English speaking users.

Security

• Xoom: As a PayPal service, Xoom benefits from PayPal's robust security measures, including encryption and fraud detection systems. This adds a layer of trust for users who are concerned about their transaction safety.
• WorldRemit: Equally committed to security, WorldRemit employs encryption and anti-fraud measures to protect user data and transactions. They are regulated by various financial authorities worldwide, ensuring compliance with international standards.

Conclusion

Ultimately, choosing between Xoom and WorldRemit comes down to your specific needs and preferences.
Xoom might be better suited for users already integrated into the PayPal ecosystem. Its reputation, ease of use, and speed of transfers for specific destinations can justify its slightly higher fees.
WorldRemit, on the other hand, distinguishes itself for its cost-effective fee structure, diverse payout options, and user-friendly interface, which provides a more economically viable solution between the two.

As for our advice, you can't go wrong with either service. They both boast reliable, fast, and secure options that have you covered for all your international money transfer needs.