Xoom Review: A Fast Payment Solution Supported in More Than 160 Countries

Bottom line: Xoom's security, ease of use, and international payment capabilities to more than 160 countries are standout features for this payments app.

At a glance

What is Xoom and how does it work?

Xoom is a payments app developed by PayPal. It makes sending domestic and international funds to over 160 countries quick and easy.

To use Xoom, you must first register for an account and download the mobile app. Then you can 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 charges 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 -- fees vary, but you can review the fee before finalizing your bill payment. Our detailed Xoom review will explain more highlights below.

Top perks

It's fast and secure

One of the biggest advantages of 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.

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.

Security is an important consideration when you use any personal finance app or payments app. 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 various 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 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

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 regardless of whether they have a Xoom account.

You can pay bills with Xoom

You can also use Xoom to pay utility bills, 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. Transaction fees for paying bills vary, but Xoom shows the fee on the final review screen before finalizing the transaction.

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, payment partner limits, and your sending level. Knowing these limits is essential, 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.

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

Cash pickup maximums

Fees can add up

Xoom charges fees to transfer and send money. While this is not unusual for a payments app, the fees charged by Xoom can add up -- especially if you're planning on sending a significant amount of money.

Fees vary depending on the country you're sending funds to, how much you're sending, and the delivery method. In many cases, you can expect to pay a minimum of $4.99 to send money with Xoom.

Xoom doesn't list its fee structure on the app or website. If you want to know how much you'll pay in fees, start a transfer. The app or website will calculate and list the fees before you complete the money transfer.

Some destinations take longer for delivery

The fastest delivery method may take longer than a few minutes, depending on where you're sending money. You can track the progress of your transfer within the app.

You'll need to provide documentation to send higher amounts of money

As mentioned earlier in our Xoom review, this app has sending levels. If you want to send larger amounts of money with the app, you may be asked to provide additional documentation -- such as copies of government-issued IDs or copies of financial records. If you plan to send a large amount of money from the start, you should have these documents on hand first.

Exchange rates may be poor

Depending on where you're sending money, the exchange rate offered by Xoom may not be as forgiving as other apps or money transfer services. For example, competitors like MoneyGram may have better exchange rates. We looked at the exchange rates for sending USD to two different countries -- Mexico and Japan -- and in both cases, Xoom had a worse exchange rate than MoneyGram. It may be worth checking before you use Xoom to send money.

If you want an app that focuses only on U.S. money transfers: Venmo is an alternative payments app that allows users to send money to U.S.-based individuals. Transfers happen quickly, and you can fund payments via credit card, debit card, bank account, or your Venmo balance. It's free to send money with Venmo when using your Venmo balance, a debit card, or funding through your bank account. However, a fee of 3% will apply when you use a credit card to send money. But you may want to stick with Xoom if you need to send money internationally.

If you want an app that offers better exchange rates: Wise is an alternative known for its excellent exchange rates -- it adds no markup to the current exchange rate. This app also charges low transfer fees. Wise has a cost calculator that shows all exchange rates and transfer fees -- so you'll know what to expect before you complete a transfer. Plus, you'll be shown competitor rates to see if you're getting the best deal with Wise. But you may want to stick with Xoom if you want faster transfers. Most transfers aren't instant with Wise.

Xoom is free to download, but does charge fees to send money. These fees vary depending on where you're sending it and how much you plan to send. It also depends on how you're funding your money transfer.

If you plan to use Xoom to pay a bill, you'll be shown the fee before completing your transaction. You can generally expect to pay a fee that begins at $4.99 for most money transfers. You can use Xoom's fee calculator to estimate fees before sending money.

Using your bank account to fund your transfer is usually the cheapest option. You can expect to pay higher fees when using a credit card. You should also be aware that your credit card issuer may charge a cash advance fee for this kind of transaction, meaning you'll pay even more in fees if you use a card. Xoom will show you the fees before completing a money transfer.

Xoom is an excellent choice for anyone who needs to send money abroad and wants the transfer to happen quickly. The app provides users with multiple delivery options, supports various funding choices, and supports sending money to over 160 countries. While there are fees associated with sending funds through Xoom, this is a secure, reputable payments app that does what you need it to do.