Wise vs Xoom Review

Whether for personal or business reasons, you may need to transfer money internationally at some point. And, because there are several money transfer services, it can be difficult to choose the right one. If you’ve narrowed your options down to Wise and Xoom and can’t decide which one to use, this Wise vs Xoom comparison will help you decide which money transfer service is best for you.

We will compare Wise vs Xoom to see which provider has lower fees, better exchange rates, more features, better transfer speed, and so on. Will consider all the advantages and disadvantages of using either Xoom or Transferwise (Wise).

Discover the best ways to send money internationally, If you want to look into alternatives to Wise and Xoom.

Wise vs Xoom

At the end of the day, it will either be Xoom or Wise that you are going to use to send money. As a result, it’s important to get to know the company you’re entrusting your money to. Let’s get to know the contenders:

What is Wise?

Wise, formerly Transferwise, is a London-based money transfer company founded in 2011. It was started by two Estonian friends (Taavet and Kristo) who had a clear goal of making money transfers less expensive, faster, and easier.

Despite being only a decade old, Wise has grown rapidly and is frequently ranked as the best money transfer service. Because Wise supports so many countries and currencies, it is frequently referred to as a borderless account or multi-currency account.

Wise is renowned for being incredibly open about its fee structure and transferring money at the mid-market rate. Furthermore, Wise provides a MasterCard that can be used anywhere in the world to make payments and withdraw money from Wise.

What is Xoom?

It’s probably your first time hearing of Xoom, but it’s highly likely that you know PayPal or heard of it. Xoom is a money transfer service owned and run by PayPal, a leader in digital payments.

Xoom is a trustworthy money transfer service that enables people to make quick, simple, and easy money transfers. Aside from money transfers, you can use Xoom to purchase airtime and pay bills for family and friends all over the world.

What distinguishes Xoom from other money transfer companies is the wider range of countries to which they can deliver funds. Xoom also offers a variety of payment and delivery options, including cash delivery, cash pick-up, mobile money, debit card, and bank deposits.

Xoom vs Wise: Fees and exchange rates

One of the most important factors to consider when selecting a money transfer service is the cost of the transfer. This is critical because you don’t want to end up paying 10-15% in fees.

Fees, exchange rates, destination countries, and payment and delivery options are all factors that affect the cost of money transfers. However, the fees and exchange rates set by money transfer providers will account for a significant portion of the cost.

Which is cheaper, Wise vs Xoom? Let’s find out which money transfer provider offers cheaper transfers:

Wise fees & exchange rates

Wise (Formerly Transferwise) is one of the cheapest money transfer services and probably the only provider that does not add any markup to the exchange rate. They exchange money using the mid-market rate and only charge a small variable or fixed fee. Wise is so transparent with its fees that you will be able to see the exact amount you are being charged and the amount your recipient will get before making the transfer.

Xoom fees & exchange rate

Xoom, like most money transfer companies, charges a fixed fee plus a markup on the exchange rate. Most money transfer companies use this fee structure, and the total cost of the transfer is primarily determined by the percentage added to the exchange rate. The percentage added varies by country.

For example, let’s say you want to transfer $1000 to the UK. And let’s assume the fixed fee is $4.99 and there is a 1.5% markup added to the exchange rate. 1.5% of $1000 which is $15. The total fees would be 15+4.99 which equals $19.99.

Case study

We carried out a study to determine which money transfer service is less expensive to use; Wise vs Xoom. The table below compares various amounts sent from the United States to India. It shows how much money a person would receive in Indian Ruppie if sent via Wise or Xoom.

Wise vs Xoom: fees

Verdict: Wise wins, Wise is significantly less expensive than Xoom for money transfers. This is primarily due to the fact that Wise does not add a markup to the exchange rate and instead uses the current exchange rate, making it significantly cheap. If your primary reason for coming to this Wise vs Xoom comparison was to determine which service is cheaper, Wise is the less expensive option, unless you want to transfer more than $10,000, in this case, Xoom seems to be slightly cheap.

Wise vs Xoom: Which service is faster?

When you use Wise or Xoom, your money is likely to reach your recipient much faster than when you use traditional banks. However, if you want your money to be delivered as quickly as possible, it’s wise to go with the fastest provider.

Wise and Xoom money transfer speeds vary depending on a variety of factors, including payment and payout methods, amount sent, and sending and receiving countries. Transfers paid for with debit/credit cards are usually completed instantly or within minutes. Mobile money, digital wallets, and cash pick-up payout options are also delivered in minutes. Bank deposits, on the other hand, are usually completed within hours, but may take a few days depending on the currency and country you are sending to.

You may be wondering which service is faster, Xoom or Wise.

Wise transfer speed range from instant to 2 days, but in rare cases, it can take up to 5 days. While Xoom on the hand promises to deliver your money within minutes, it can take up to 5 days in some cases as well.

Verdict: Both Wise and Xoom offer the same transfer speed, though you should expect some minor differences depending on the various factors discussed above.

Safety & security

Another factor to consider when selecting a money transfer service provider is the safety and security measures it has in place. Wise and Xoom are both undeniably safe and secure money transfer services.

Is Wise safe?

Wise is without a doubt a safe way to send money abroad. To begin with, its activities are regulated by various authorities around the world, including FinCEN in the United States and the FCA in the United Kingdom.

Wise keeps your money in a variety of well-established financial institutions; they keep your money separate from their operating accounts, ensuring the safety of your funds.

Furthermore, your personal information is never shared and is kept secure through the use of encryption technology. As a result, your financial information is safe from hackers.

Is Xoom safe?

Xoom money transfer is a service provided by PayPal, a global financial institution regulated by numerous governments around the world. Because it is extremely unlikely that PayPal will go bankrupt or get involved in fraudulent activities, Xoom is an extremely safe way to send money.

Verdict: Both Wise and Xoom are extremely safe ways of transferring money.

Pros and Cons

HTML Table Generator

Best exchange rate (Mid-market rate)
Accounts in multiple currencies
Offers a MasterCard 
No cash delivery 


Cash pickup 

Door-to-door delivery

Covers more than 150 countries

Supports PayPal



No multi-currency accounts

Users can only send money from the US, Canada & a few European countries

Users must have a PayPal account or create one to send money

Payment & Delivery options

It is critical to consider the payment and payout options provided by the money transfer service you have chosen. You don’t want to discover, after creating an account, that you can’t pay for the transfer or that the provider doesn’t offer your preferred delivery option.

Wise vs Xoom; Which service offers a wider range of payment and delivery options? Xoom has way more delivery methods compared to Wise, but when it comes to payment options, there’s barely a difference between the two. Here are the payment and delivery options supported by Wise and Xoom:

Wise payment and delivery methods

Wise supports the following;

Payment options: ACH (bank transfer), wire transfer, and debit/credit card. Google Pay and Apple Pay are also accepted in some countries.

Delivery options: Bank deposits, mobile money, and digital wallets. Bank deposits are available in almost every country where Wise operates, but digital wallets and mobile money are only available in a few.

Xoom payment and delivery methods 

Xoom supports the following;

Payment options: PayPal balance, bank transfer, debit/credit card payments.

Delivery options: Cash pickup, cash home delivery, airtime top-up, bank, debit card, mobile money, and digital wallet deposits.

Remitly vs Xoom vs Wise

If you want a money transfer service that falls somewhere between Xoom and Wise, I recommend Remitly. Remitly is the best alternative to Wise and Xoom because it provides nearly all the benefits that these two providers offer. It’s an excellent money transfer service trusted by millions.

Remitly is similar to Wise in many ways, the most important being competitive fees and exchange rates. It outperforms Wise in terms of pay-in and payout options; Remitly offers cash pickup delivery, which Wise does not.

If you want to send money abroad using Xoom but don’t want to pay high fees or Xoom isn’t available in your region, you can use Remitly in place of Xoom. Remitly is less expensive than Xoom and is available in more countries as well.

Wise vs Xoom: Ease of use

Both Wise and Xoom are easy ways of sending money internationally, but to be specific:

Wise allows people to send money from the comfort of their homes; simply send money through the Wise website or the mobile app, which is extremely simple to use. To begin with, creating an account is a simple process that takes less than five minutes. To verify your account, you may be required to submit a copy of your ID or passport. Making transfers is also fairly simple; simply follow a few steps and you’re ready to go. If you encounter a problem, you can easily contact support by visiting the help center. Wise supports 16 languages, so explaining your issue to support will not be a problem.

Xoom is also very simple to use; to send money, you can use the Xoom mobile app or simply go to the Xoom website and make a transfer. You can make a transfer in a matter of minutes and even pay for it with your PayPal balance if you wish. Xoom has excellent customer service; you can contact them by email, phone, or by visiting their help center. Xoom provides its services in 15 languages, so contacting support will be easy.

Additional features

Apart from money transfers, Wise offers the following features;

  • A MasterCard that can be used for shopping and withdrawing funds
  • Multi-currency accounts (users can keep and receive money in more than 50 currencies)
  • Virtual bank accounts in several currencies
  • Users can earn money by inviting friends

Besides money transfers, Xoom users can;

  • Pay bills for friends and family across the globe
  • Reload airtime for others

Customer satisfaction

Which international money transfer service has the highest customer satisfaction, Wise vs Xoom?

What others have to say about Wise

Wise is a popular money transfer service that is loved by its customers, as evidenced by its 4.5 out of 5 Trustpilot rating and over 170 000 excellent reviews. Wise is an excellent money transfer service that delivers on its promises, based on these high ratings. Below are a few Wise reviews, but you can learn more about what others have to say by visiting Trustpilot.

Wise vs Xoom customer reviews

What others have to say about Xoom

Despite the fact that Xoom is a popular money transfer service, it does not have many positive Trustpilot user reviews. It has a Trustpilot rating of 3.2 out of 5 stars. It also has over 22,000 reviews.

Most people like Xoom because of how quickly transactions are completed, how simple it is to use, and the excellent customer support.

However, the negative ratings are due to high fees and poor exchange rates, some transfers being canceled unexpectedly, and the time-consuming process of submitting documents for verification. You can read more Xoom reviews on Trustpilot.

Wise vs Xoom customer reviews

Wise vs Xoom; how do they work? In the following chapter, you will learn how to send money using either Xoom or Wise.

How to send money on Wise

Sending money with Wise is simple; simply follow the steps below;

  1. Go to Wise and create an account. You may also be asked to verify your account by submitting a copy of your passport or ID.
  2. Tap send on the home screen to begin the transfer.
  3. Select your country and the recipient’s country. Enter the amount you want to send, then click Continue.
  4. Choose one of the following: myself, someone else, or business/charity.
  5. Fill in the details of your recipient. You may need to enter the following details; full name, address (Country, city, postcode, residential address), and bank account or mobile/digital wallet details if you have them. If you don’t have the bank account details, all you need to provide is your recipient’s email address. Sending money to people already registered on Wise is free and all you need is their Wise email address.
  6. Review the details of your transfer.
  7. Select a payment method and pay for the transfer.
  8. Money will be on its way once the payment is made.

How to send money on Xoom

Sending money with Xoom is simple; you can use the website or the mobile app to make the transfer. All you have to do is follow the steps below;

  1. Go to Xoom and create an account or log in if you already have an account.
  2. Tap send to begin the transfer.
  3. Select the region/country you intend to send money.
  4. Enter the amount. You will be able to see the total fees and how much your recipient will get.
  5. Choose how you want your recipient to get the money (bank, debit card, cash pick up, mobile money, or digital wallet).
  6. Enter the recipient’s information.
  7. Select how you want to pay for the transfer.
  8. Review the transfer details and then tap send.
  9. That’s all.

Wise vs Xoom: Which should you use?

Wise and Xoom are excellent money transfer services that are safe and reliable to send money with. Even though these two money transfer services are very similar in many ways, they have some differences.

Xoom is a popular money transfer service that sends money to over 150 countries. It can, however, only be used to send money from a few countries. Xoom also offers cash pickup and home delivery options, which aren’t available on Wise.

Wise, on the other hand, is an excellent money transfer service that is frequently ranked as the best money transfer service. Wise is well-known for being less expensive and transferring money at the mid-market rate; it never adds a markup to the exchange rate. Wise also has a high Trustpilot rating of 4.5 and over 170,000 excellent reviews.

Which money transfer service should I use, you may wonder? Wise will always be the better option, but there are times when Xoom is the ideal option. Pick one based on your needs. Check out the comparisons of TransferGo vs Wise and Wise vs Western Union, if you’re still not sure which one to pick.

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