Xoom review - Should you use it in New Zealand?

Sending money internationally has never been easier thanks to digital platforms like Xoom and Wise offering fast and convenient transfers. But, how does Xoom compare to other providers in terms of fees, features and exchange rates?

In this Xoom money transfer review, we’re going to take a closer look at what they offer, and how people in New Zealand can use the service. We’ll also explore Wise as an alternative for international money transfers.

What is Xoom?

Xoom is a money transfer service from PayPal that can be used to send money to friends and family in more than 160 countries.¹ It’s considered a safe and legit way to transfer money, with your financial information being kept secure by around the clock encryption and fraud monitoring.

Unfortunately at the moment, people in New Zealand can only receive money with Xoom, they can’t send it.³ This may change in future as Xoom adds more supported countries and regions. If you’re looking to send money from New Zealand, consider Wise, a provider that allows you to send to over 140+ countries with low, transparent pricing, but we will dive into that a bit later.

Xoom main overview

When making a money transfer with Xoom, here are some of the key features users can experience.¹

• Options to send money to bank accounts, mobile wallets, debit cards and even for cash pick up or delivery.
• Text, email and online status updates for the transfer
• Know the fees and amount the recipient will get before making the transfer
• Money back guarantee that the funds will go to the designated account

Again people in New Zealand can only receive money with Xoom, not send it, but it’s still handy to know the options even if you’re just the recipient.

Xoom - fees and limits

The Xoom fees are variable, being determined for each transaction based on these factors.²

• Transaction type
• Payment method and currency
• Transaction amount
• Destination country and currency

If you want someone to send you money in New Zealand using Xoom you can check what it would cost using their online fee calculator.

Xoom.com exchange rate

Xoom determines their own exchange rate which does include a currency conversion spread. What this means is that there’s a mark up that’s charged on top of the exchange rate to make a profit.

An alternative way of doing things is to just give users the mid-market rate, which is what Wise does.

If you haven’t heard of it before, the mid-market rate is the real exchange rate between two currencies, sitting between the buy and sell prices set by banks and currency exchange services. When providers like Wise give you the mid-market rate they’re not making any money off the exchange rate, you’re getting what they do.

How to make an international transfer with Xoom

If you need to receive money with Xoom, here’s how people can set up an international transfer online or through the app.⁴

Steps to make a Xoom transfer online

Here’s the steps needed to organise a Xoom transfer online.

1. Login and select ‘Send Money’
2. Choose the destination country
3. Select how the money will get to the recipient
4. Enter the bank account, mobile wallet or pick up location information
5. Input the recipients personal information
6. Decide the payment method
7. Review and confirm the transfer

Steps to make a Xoom through the app

This is how a money transfer can be set up using the Xoom app.

1. Go to my account
2. Press ‘Send Money’
3. Select the destination country
4. Input how the money will get to the recipient
5. Add the bank account, mobile wallet or pick up location information
6. Enter the recipient's personal information
7. Choose the payment method
8. Review then press send to complete the transfer

Money transfer comparison: Xoom vs Wise

To make it easier for you to compare costs, here’s what it would cost to send money to a bank account in New Zealand from a few different major currencies with Xoom and Wise.⁵

Looking at this data, the importance of considering the exchange rate becomes quite clear. As you can see, Wise consistently has a slightly higher transaction fee than Xoom, but overall it represents better value for money due to the more favourable exchange rate to NZD.

How long does it take to send money with Xoom?

Typically money sent by Xoom takes 2 business days to reach a bank account in New Zealand.⁵

Xoom customer satisfaction

Taking a look at online reviews, unfortunately Xoom only has a Trustscore of 1.5 out of 5 on Trustpilot.⁶ By comparison, Wise has a score of an Excellent 4.3 out of 5 stars, with over +230,000 reviews.

Customer complaints include money not arriving as expected as well as frustrations over PayPal’s relationship with Xoom, but there are also positive reviews from people claiming to be long term users who’ve had no problems.

Summary - Is Xoom right for you?

Xoom offers a convenient way to receive money in New Zealand, but since sending money from New Zealand isn’t currently supported it may not be the best fit for everyone. It’s really up to what you need the platform for.

It’s also worth noting that while Xoom’s fees vary depending on the transaction and it offers multiple delivery options, which is great if you want to receive cash, the exchange rate markup can make transfers more expensive than anticipated.

Xoom might be useful if your sender prefers PayPal linked services, but Wise does offer transparent pricing and the mid-market exchange rate which could represent better value overall.

Wise also allows you to send money to 140+ countries in 40+ currencies which Xoom currently doesn’t support in New Zealand. With Wise, you can open an account for free, hold and exchange 40+ currencies, and even get local account details in 8+ currencies.

At the end of the day if you’re looking for a reliable way to receive money in New Zealand, Xoom is an option. However, if you need to send money abroad or want fair exchange rates for currency conversions, Wise is worth considering.

🚀 Transfer money with Wise