Wise and Xoom are both popular ways to send money abroad, but they take opposite approaches to pricing. Wise built its reputation on the real exchange rate and total transparency; Xoom, owned by PayPal, offers wide delivery options and the convenience of the PayPal ecosystem — but makes more of its money on the exchange rate. If you are choosing between them, here is how they compare in 2026 and which one delivers more of your money.
The quick verdict
- Cheaper for most transfers: Wise — real mid-market rate, no markup, transparent fee.
- Best for cash pickup and PayPal users: Xoom.
- Watch Xoom’s exchange rate — it adds a 2–3% margin on top of a fixed fee.
- Both are safe, licensed and regulated.
Exchange rates
This is the heart of the difference. Wise always uses the real mid-market rate with no margin added, and charges a small, separate fee you can see upfront. Xoom builds a margin of roughly 2% to 3% into the exchange rate, so its cost is partly hidden. Because that markup scales with the amount, Wise usually delivers more — particularly on larger transfers.
Fees
Wise uses transparent percentage-based pricing (often around 0.35% plus a small fixed fee, though it varies by currency), so what you see is what you pay. Xoom charges a fixed fee that can be higher, and paying by credit card costs more still. Add the rate markup, and the total gap can be significant — sending $1,000 through the pricier options can cost $35–50 more than through Wise.
Speed
Both are quick. Xoom often delivers within minutes in many regions, especially for cash pickup, while Wise frequently arrives the same or next day and sometimes within seconds. Speed depends on the destination, how you fund the transfer, and the delivery method.
Coverage and delivery
Xoom’s strength is flexibility: it delivers to bank accounts, mobile wallets and cash pickup at thousands of agent locations worldwide, and lets you pay through your PayPal account. Wise focuses on fast, cheap bank deposits across 40+ currencies, plus a multi-currency account and card. If your recipient needs cash in hand, Xoom often reaches further; if they have a bank account, Wise usually costs less.
Wise vs Xoom at a glance
| Wise | Xoom (PayPal) | |
|---|---|---|
| Exchange rate | Real mid-market, no markup | ~2–3% margin added |
| Fees | Transparent, from ~0.35% | Fixed fee; more by credit card |
| Speed | Seconds–next day | Minutes in many regions |
| Delivery | Bank deposit (+card/account) | Bank, wallet, cash pickup |
| Best for | Transparency, bank transfers | Cash pickup, PayPal users |
Which should you choose?
- Best value and transparency: Wise, especially for bank deposits and larger amounts.
- Recipient needs cash pickup or a wallet: Xoom.
- You want to pay via PayPal: Xoom.
- Either way, compare the amount delivered before you send — and check both against Remitly too.
Are they safe?
Yes. Both Wise and Xoom (through PayPal) are licensed, regulated companies that safeguard customer funds and use strong security. See our Is Wise safe? guide for more on how your money is protected.
Compare the amount delivered
Check today’s real mid-market rate on our free converter, then compare what Wise and Xoom actually deliver for your amount and destination.
Open the currency converterFrequently asked questions
Is Wise or Xoom cheaper?
Wise is usually cheaper — it uses the real mid-market rate with a small transparent fee, while Xoom adds a 2–3% margin plus a fixed fee. Wise often delivers more, especially for bank deposits. Xoom can be worth it for cash pickup or PayPal convenience.
What is the difference between Wise and Xoom?
Wise always uses the mid-market rate with a separate transparent fee. Xoom, PayPal’s transfer service, builds a margin into the rate but offers bank, wallet and cash-pickup delivery plus PayPal convenience.
Which is faster?
Both are fast — Xoom often within minutes in many regions, Wise same or next day and sometimes seconds. It depends on destination, funding and delivery.
Is Xoom part of PayPal?
Yes. Xoom is PayPal’s dedicated international transfer service, generally cheaper than the main PayPal international feature, which has a larger markup.
Should I use Wise or Xoom?
Wise for the best rate and transparency, especially bank deposits and larger transfers; Xoom for cash pickup, wallets or paying via PayPal. Compare the amount delivered first.
Related: Wise vs Remitly · Best money transfer apps · Cheapest way to send money abroad