Xoom vs Wise: Which one is better for Americans

PayPal's Xoom and Wise both help Americans send money internationally, but you're probably wondering which one is the better option for you. Both providers have their strengths and weaknesses.

Xoom offers a lot of coverage for international money transfers, as well as cash pickups, bill payments, and mobile reloads. On the other hand, Wise is a fast and convenient way to transfer funds to 160 countries with transparent fees and the mid-market exchange rates, which will likely save you money.

Here's a closer look at Xoom vs Wise so you can choose the best money transfer provider for you and get your funds where they need to go with minimal costs.

Table of contents
Xoom vs Wise: Overview Xoom vs Wise: Fees & pricing Xoom vs Wise: Supported countries Xoom vs Wise: Money transfer times Xoom vs Wise: Security Frequently asked questions

Xoom vs Wise: Overview

What is Xoom and how does it work?

Xoom is PayPal's international money transfer arm, and it allows you to send money to pretty much all countries in Latin America, Europe, and Asia, as long as you live in the US.

In addition to their money transfer services, you can also send mobile reloads and pay utility bills in Costa Rica, Dominican Republic, El Salvador, Guatemala, Mexico, and Nicaragua.¹

You can fund transfers through your PayPal balance, bank account, debit card, or credit card. Recipients receive money through bank deposits, cash pickup locations, or direct delivery to their debit cards, but make sure that all of these options are available in your destination country.¹

Xoom's limit for sending money depends on your verification level (there are 3 of them), and with the highest one, you'll be able to send up to 50,000 USD via bank transfers or to a card, and up to 10,000 USD for cash pickups.²

However, to qualify for these limits, you'll need to pass verification by submitting appropriate ID (driver's license, passport, or Green Card), sharing pay stubs or bank statements, and answering a few security questions.²

✅ Pros	❌ Cons
Multiple payout options (bank, cash, card)¹	Adds markups to exchange rates
Pays bills directly in Costa Rica, Dominican Republic, El Salvador, Guatemala, Mexico, and Nicaragua¹	Costly transfers with high fees
Phone reload services available
Integrated with PayPal

What is Wise and how does it work?

Wise is a money transfer service that works in a similar way to Xoom, but it often ends up being cheaper to send money abroad. Why? Because instead of adding a costly markup on top of the exchange rate when you switch from one currency to another, Wise uses the mid-market rate you'd find on Google.

You'll still pay a fee for your international transfers, but it'll be just one transparent fee that Wise charges you upfront. There's nothing extra hidden in the currency exchange rate like with Xoom. This doesn't guarantee that Wise will always end up being less expensive than Xoom, but that’s often the case.

Wise isn't just for transferring money.

You can also open a multi-currency account that holds over 40 different currencies at the same time and get local bank details in 9 currencies. This means people can send you money as if you have a local bank account in EUR or AUD. You can also get a Wise debit card.

✅ Pros	❌ Cons
Mid-market exchange rates with no markup	You can’t send money for cash pickups
Handles large transfers up to 1,600,000 USD³	No physical locations
Multi-currency account and debit card	No bill payment services
Strong safety and regulatory compliance	Charges transfer fees from 0.57%⁴

Xoom vs Wise: Fees & pricing

Exchange rates

If you want to transfer money to a country that doesn't use USD, you'll need to convert your USD into the local currency, like MXN or CRC. The exchange rate controls how much local currency your recipient gets for your USD.

Most money transfer providers, including Xoom, build profit directly into the exchange rate by offering you less foreign currency than the mid-market value.⁵

For example, the exchange rate you see on Google might be 1 USD = 500 CRC, but Xoom will only give you 1 USD = 485 CRC. They'll keep the difference as profit, and you'll keep losing money on every dollar you send.

In contrast, Wise is one of the very few providers that uses the mid-market exchange rate with no markup. When you see 1 USD = 500 CRC on Google, that's what you get. Wise earns revenue through their transfer fees, but they don't make anything on the exchange rate.

This is important to keep in mind for all transfers, but the exchange rate costs become more significant for larger transfers because you lose money on every dollar.

Costs

You'll pay for your transfer with both Xoom and Wise. However, with Xoom, you're paying twice: through the transfer fees and exchange rates. With Wise, you pay just the transfer fee.

Here's how they compare:

Feature	Xoom	Wise
Account opening	Free	Free
Transfer fees	Varies	From 0.57%⁴
Exchange rate	Includes markup	No markup
Minimum transfer	1 USD	1 USD
Maximum transfer	2,999 USD to 50,000 USD depending on your verification level²	1,600,000 USD⁴

If Xoom's costs seem too high to you, you can investigate Xoom alternatives.

Transfer fees

Transfer fees are the upfront cost that Xoom and Wise charge you for helping you send money abroad. Neither Xoom nor Wise has fixed transfer fees.

For Xoom, fees depend on multiple variables, including your transaction type, amount, destination country, recipient currency, and more.⁵

The best way to estimate what you'll pay is to go on Xoom's website and use their online calculator, which will give you the real-time pricing.

Wise also charges different transfer fees depending on your delivery method, payment method, destination country, and other factors, but they're transparent about the fact that fees start at 0.57% of your transfer amount.⁴

Similar to Xoom, you can check how much your transfer will cost with Wise using the online calculator.

A quick price comparison

Xoom and Wise charge dynamic fees, so one provider isn't always cheaper than the other. Here's how their pricing compares:

Testing both services with your specific transfer details, including the amount, destination, and payment method, will show you the true cost difference between Xoom vs Wise.

Learn more about Wise

Xoom vs Wise: Supported countries

You get extensive international coverage with both Xoom and Wise.

There isn't a lot of difference between their supported countries if you live in the US, and you can send money pretty much anywhere, though the specific ways you can transfer funds and other features can vary by country.

Here's how the providers compare at a glance:

Feature	Xoom	Wise
Supported countries	Worldwide (for US accounts)	160 countries
Cash pickup locations	Yes	No
Currencies supported	Not listed	40+ currencies
Multi-currency account	No	Yes
Debit card	No	Yes
Business accounts	No	Yes

Xoom's main purpose is to allow you to send money to family and loved ones who are based outside of the US, particularly across Latin American markets.

Wise allows you to do that, but it also has more features for people who're splitting their lives between different countries and those who are running international businesses.

Wise is also a better way to move money for large purchases, such as buying real estate, since it allows you to send up to 1,600,000 USD.³

Xoom vs Wise: Money transfer times

There's no one set transfer time with either Xoom or Wise. It depends on your chosen payment method, destination country, and how your recipient receives the money. That said, with both providers, the transfers are fast.

Xoom delivers most transfers within minutes, especially for cash payouts. Bank transfers can take a few days, depending on the processing times. You'll get status updates via email or text message, and you can also monitor your transfer's progress online.⁶

Wise is also a fast way to send money. It processes 64% of transfers in under 20 seconds, with 95% completing within 24 hours.⁷

Some currency pairs take longer than others, but you'll get an estimate on when your recipient will get the money when you set up your transfer.

Xoom vs Wise: Security

Both Xoom and Wise keep your money safe.

There are strong security standards to protect your money and personal information during international transfers with both providers. They're also both established, so their safety has been tested by millions of people.

Xoom uses data encryption and round-the-clock fraud monitoring to safeguard your transactions.

Wise takes security further by keeping your money completely separated from their own funds. Their security infrastructure also runs 7 million fraud prevention checks daily (that's 80 security scans every second) to detect and stop potential threats before they affect your transfers.⁸

Overall, on the technical side of things, you're safe with both providers.

However, it's possible to get scammed because criminals target money transfer services to trick people into sending money willingly. For example, romance scams are when someone builds a fake relationship with you online and then asks for emergency money.

Once you authorize and send a transfer, it's usually impossible to reverse, and neither Xoom nor Wise can recover your money since you technically approved the transaction. This is why it's important to only send money to people you trust and ideally know personally.

Frequently asked questions

What apps are like Xoom?

You can also send money abroad with other providers. Popular ones include Western Union, MoneyGram, Remitly, and WorldRemit, among others. Most of these services offer similar features like cash pickup networks and mobile apps, but most also apply exchange rate markups similar to Xoom's pricing model, making them generally more expensive than Wise.

Is Xoom a good service?

Yes, Xoom is a reliable way to send money abroad. However, it's important to compare providers and see if you're able to find a better deal elsewhere first, since Xoom charges transfer fees and hefty currency exchange rate markups.

Is there a monthly fee for Xoom?

No, there are no monthly fees with Xoom. You only pay when you send money, with fees determined by your transfer amount, destination country, payment method, and delivery option.

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You can successfully send money abroad with both Xoom and Wise, but make sure to compare how much you're getting charged in fees and currency exchange rates before you confirm your transfer. This way, you'll be able to secure the best deal.

Xoom charges exchange rate markups, and Wise doesn't, so Wise can often end up being less expensive.

With Wise, you can send up to 1,000,000 USD per wire transaction to 140+ countries, with the mid-market exchange rate and low, transparent fees.

Get a Wise Account
in minutes 💰

Sources

1. MoneyGram - Home
2. MoneyGram - Mexico
3. MoneyGram - Philippines
4. Wise - Pricing
5. Wise - Full Guide to (Transfer)Wise Limits
6. MoneyGram - About Us
7. MoneyGram - How do I sign up for a MoneyGram account?
8. MoneyGram - When will my receiver’s money be available in their bank account or mobile wallet?
9. Wise - Home
10. Wise - How long does a transfer usually take?
11. MoneyGram - Is the MoneyGram mobile app safe?

Sources checked 09/10/2025