Xoom was founded in 2001 and later bought by PayPal. It’s a big name in sending money across borders. But, it has its downsides. If you’re looking for Xoom competitors, there are many alternative money transfer services with great features and lower costs.
Wise, formerly TransferWise, is a standout. It’s way cheaper than banks, with fees under 1%. It has over 70 partners worldwide and offers clear fees starting at 0.43%. You can pay with direct debit or credit cards.
PayPal has its own money transfer services, but others like Remitly and OFX have their perks. Remitly sends money to over 170 countries and offers 24/7 support in 18 languages. OFX doesn’t charge transfer fees and has exchange rates that might be better than Xoom’s.
MoneyGram and Western Union are also good choices. MoneyGram’s fees depend on how you pay and can be over 2%. Western Union’s fees for small transfers are under $5, with rates that vary. These services are handy for certain countries, amounts, and payment methods.
The world of international money transfers is full of options. It’s key to look into and compare these alternative money transfer services to Xoom. For more info, check out this detailed guide on top alternatives to Xoom.
Why You May Need Alternatives to Xoom
Xoom is great for sending money abroad, but its fees might not be the best for everyone. It’s part of PayPal, which means higher costs for exchange rates and conversion fees. This can make transfers more expensive for those looking for cheaper options.
For example, PayPal’s fees range from $0.99 to $4.99, plus a 2.99% fee for card payments. There’s also a currency spread of 3-4%. Services like Skrill and Payoneer have different fees, showing Xoom might not be the cheapest choice.
Services like Wise and OFX offer cheaper ways to send money. Wise helps over 600,000 businesses send money abroad, making it great for businesses. OFX is good for big transfers, with no limits and support for over 50 currencies in 170 countries.
Companies like Currencies Direct focus on personal service, while new players like Profee focus on fast and transparent transfers. Profee can send money to over 65 places in minutes.
A detailed comparison can further highlight these contrasts:
| Service | Fees | Exchange Rate Markup | Transfer Limitations | Destinations |
|---|---|---|---|---|
| Xoom (PayPal) | $0.99 – $4.99 + 2.99% (card payments) | 3-4% | Varied (based on transfer type) | International |
| Wise | Low transparent fees | Minimal | No limit | 170+ countries |
| OFX | No fees | Slight | None | 50+ currencies |
| Profee | Zero fee for first transfer | Minimal | Varies | 65+ destinations |
| Payoneer | Up to 3% | N/A | Depends on recipient | 200+ countries |
Using alternatives to Xoom can save money and offer more value. This is true for both personal and business users. So, looking for the best Xoom alternatives is a smart move to cut costs and get more for your money.
Guide to Xoom Competitors
The international money transfer market is filled with many services. Wise, known as TransferWise, is famous for its clear fees and fair exchange rates. It handles over US$70 billion a year for more than 10 million customers. Wise’s Trustpilot score of 4.6/5 shows users are happy with its openness and rates.
PayPal’s Xoom is known for its quick transfers. It offers many delivery options, like direct bank deposits and cash pickups. But, it charges a bit more than the mid-market rate. Xoom works in over 160 countries, but its Trustpilot rating is 3.7/5.
Remitly and WorldRemit are great for those looking for other options. Remitly is known for fast transfers and has a high Trust & Credibility score. WorldRemit is also versatile but might not be available everywhere. Both are good for quick international payments.
OFX is great for big transfers and business needs. It offers good exchange rates and 24/7 support. It also doesn’t charge fees for large transfers. Skrill is unique, with a digital wallet for online payments and crypto.
TransferGo is another option, serving around 2.5 million customers. It offers good rates and has a high Trust & Credibility score. Instarem also handles a lot of money, showing it’s reliable and efficient.
Western Union and MoneyGram are big names with lots of locations. They have good Trust & Credibility scores, making them solid choices. Their wide reach means they offer many services.
Money2India is good for transfers to India, with fixed rates to avoid rate changes. Azimo is fast and cheap, making it a top choice for quick transfers. It’s great for those who want fast, affordable options.
The Monito comparison engine is very helpful for finding the best services. It’s trusted by over 15 million users and has saved a lot of money. It offers insights on services like Revolut and Wise, helping you find the best for global money transfers. More info is in this guide to money transfers.
Evaluating Key Competitors
When comparing Xoom and its competitors, it’s key to look at fees, exchange rates, speed, and user experience. Wise is often chosen for its cost-efficiency and clear fees. It’s great for smaller to medium-sized transfers and managing different currencies.
The FXC Intelligence report names Wise as one of the top 100 cross-border payment companies in 2024. This shows Wise’s strength in the market.
For bigger transactions, OFX and Currencies Direct are better. They offer more support and tools for managing currencies. The 2024 list also includes Sunrate, CAB Payments, Papaya Global, and DolFinTech, showing growth and consolidation in the industry.
PayPal is well-known for its wide network. But, its fees can be high for international transfers. This makes Wise and OFX more appealing. Consolidation and growth in the sector offer more choices for businesses and individuals.
Each provider has its own strengths, meeting different user needs. Whether it’s Wise’s cost-efficiency, OFX and Currencies Direct’s support, or PayPal’s familiarity, knowing these differences helps make better choices for international money transfers. The remittance market is growing fast, making the right choice even more important.
