Xoom Review: Pros, Cons, and More


What is Xoom and how does it work?

Xoom is a payments app developed by PayPal. It makes it easy to send both domestic and international funds quickly to 160 countries.

To use Xoom, you’ll need to first register for an account and download the mobile app. Then you’ll be able to send money through the app or by logging into the Xoom website. Your money transfers can be funded by a bank account, debit card, credit card, or PayPal balance.

After making a transfer, you’ll be sent an email or text status alerts. You can also track the progress of your transfer within the app.

Xoom does charge fees for all transfers. These fees typically start at $4.99 and go up from there. You can also use Xoom to pay a bill — and the fee is $2.99.

Our detailed Xoom review will explain more highlights below.

Top perks

It’s fast and secure

One of the biggest advantages to using Xoom over other payments apps is transfers happen quickly, usually in minutes. As for the exact timeline of a transfer, it depends on how you pay as well as the delivery method chosen.

If you use a credit card, debit card, or PayPal balance as a payment method, a Xoom transfer can often arrive instantly — or within a few minutes. But, this can be pricey, especially if you use a credit card.

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Some destinations may require more time for a transfer, even if you use the above funding methods. Using a bank account will usually slow down the transfer process and it may take a few days to complete your money transfer. It’s important to note that larger money transfers may also take longer than small money transfers.

When you use any personal finance app or payments app, security is an important consideration. Xoom uses 128-bit data security encryption to keep your data private. This means you can feel confident that your personal and financial data is protected.

Low transfer minimum

Xoom’s low transfer minimum lets you send as little as $10.

Multiple transfer options and delivery methods

Another perk to using Xoom is that this international money transfer app lets you fund and deliver currency in a variety of ways. With Xoom, you can use the following methods to send funds:

  • Bank transfer
  • Debit card
  • Credit card
  • PayPal balance

There are also multiple ways to deliver the funds that you send with Xoom. This varies depending on the country that you’re sending the money to, but generally, Xoom lets people receive money via the following methods:

  • Debit card deposit
  • Bank deposit
  • Cash pickup
  • Door-to-door delivery
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Recipients don’t need to have or use the app

Some payment apps require both the sender and the recipient to use the app. With Xoom, that’s not the case. You can send the money to someone whether they have a Xoom account or not.

You can pay bills with Xoom

You can also use Xoom to pay utility bills as well as insurance and loan bills. While this feature exists, at this time, it’s only available for a limited number of countries. And you’ll need to provide account details before making a bill payment. The transaction fee for paying bills is $2.99.

What could be improved

There are limits to how much you can send

It’s worth noting that there are limits on how much money you can send with this money transfer service. These limits vary depending on where you’re sending the money from, how the money is delivered, and your sending level. It’s important to be aware of these limits, especially if you plan to use Xoom to send large amounts of money.

What are sending levels? Xoom has sending levels, rated from 1 to 3 depending on how much required documentation you’ve provided as verification. You can move up in levels by providing more documentation — for example, your Social Security number or passport details, copies of bank statements, or driver’s license.

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If you’re unsure what level you’re at, you can check within the Xoom app.

Here are the sending limits for users sending funds from the United States:

Bank deposit maximums


View more information: https://www.fool.com/the-ascent/personal-finance/xoom-review/

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