Xoom is PayPal’s international money-transfer arm, and for anyone already inside the PayPal ecosystem it is temptingly convenient. But convenience has a price. Here is our full editorial review of what Xoom costs, where it shines, and when you are better off elsewhere in 2026.
Xoom is a fast, reliable, PayPal-backed service reaching 160+ countries with cash pickup, home delivery and mobile reload. Its weakness is cost: it adds a 1%–3% markup to the exchange rate (occasionally more on thin corridors) on top of a transfer fee, which makes it pricier than Wise for most bank-to-bank transfers. It is worth using if you already hold a PayPal balance, or for specific corridors like Central America where it runs good deals.
What is Xoom?
Xoom launched in 2001 and was acquired by PayPal in 2015. Today it operates as PayPal’s dedicated remittance service, letting you send money abroad, pay bills internationally, and top up mobile phones. It reaches more than 160 countries and offers fast delivery through bank deposit, cash pickup, home delivery and mobile reload in 130-plus of them. Because it is part of PayPal, you can fund transfers straight from your PayPal balance — the feature that makes it uniquely convenient for existing PayPal users.
How Xoom’s pricing works
Xoom’s total cost comes from two places: an upfront transfer fee and an exchange-rate markup. The transfer fee is lowest when you pay from a bank account or PayPal balance — sometimes zero on popular corridors like India — and higher when you pay by debit or credit card.
The bigger cost is usually the rate markup. Xoom does not use the pure mid-market rate; it builds in a margin that typically runs about 1% to 3% above mid-market, and on some thin corridors it has been recorded higher. That markup is easy to miss because it is baked into the rate rather than shown as a fee — which is exactly why you should compare on the amount your recipient receives, not the advertised fee.
Pros and cons
| Strengths | Weaknesses |
|---|---|
| Backed by PayPal; send from PayPal balance | 1%–3% exchange-rate markup |
| Fast — cash pickup often in minutes | Pricier than Wise on most bank transfers |
| 160+ countries, multiple payout types | Card funding adds a fee |
| Home delivery and mobile reload options | Markup can be higher on thin corridors |
| Good deals on some corridors (e.g. Central America) | Cost varies a lot by route |
| Trusted brand, strong app | Rate not as transparent as Wise |
Is Xoom safe?
Yes. Xoom is a regulated money-transfer service operated by PayPal. In the UK it is provided by PayPal UK Ltd, authorised by the FCA as an Electronic Money Institution that safeguards customer funds in a separate account, with equivalent licensing in the US and other markets. Combined with PayPal’s scale and security infrastructure, it is a safe, legitimate way to send money — the question is cost, not trust.
Who should use Xoom?
Xoom makes the most sense if you already keep a PayPal balance and value the convenience of sending from it, or if you are sending to a corridor where Xoom happens to offer a strong deal — Central America is a frequent example. Its fast cash pickup and home-delivery options are genuinely useful. But if your priority is the lowest possible cost on a bank-to-bank transfer, the 1%–3% rate markup means you should compare it against Wise first.
Editorial verdict
Xoom is a solid, trustworthy service that trades a little extra cost for PayPal-grade convenience and broad reach. For PayPal loyalists and certain corridors it earns its place. For everyone chasing the cheapest transfer, Wise’s zero-markup model usually wins — see exactly how they compare in our Wise vs Xoom breakdown.
Compare Xoom for your transfer
Xoom’s cost swings widely by corridor and payment method. Before you send, check today’s mid-market rate so you can judge the markup and compare on the amount received.