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Xoom is an international money transfer app from PayPal while Western Union is one of the world's oldest money transfer services.
We look at their fees, exchange rates and additional features side by side to see which of the two is best for your next money transfer.
The fees and rates used in this comparison are accurate as of 20 March 2019.
The "Rate" and "Amount Received" displayed are indicative rates that have been supplied by each brand or gathered by Finder.
Exchange rates are volatile and change often. As a result, the exchange rate listed on Finder may vary to the actual exchange rate quoted for the brand. Please confirm the actual exchange rate and mention "Finder" before you commit to a brand.
Unfortunately, you won't be able to sign up for an account in Australia unless you have a bank account in either the US or Canada.
Xoom's transaction fees vary depending on your payment method, how much you're sending, the destination and the currency. Based on these factors, fees can range from a couple of dollars to over $200.
Western Union's transaction fees also vary based on payment method, amount sent, destination and currency. They also start at a few dollars and can potentially run up to hundreds of dollars.
Winner: Tie
Both Xoom and Western Union fees start low but can get very high in certain situations, but generally sit within a similar range.
The table below shows how much it costs in fees and exchange rates to send money to Mexico with Xoom and Western Union.
It both cases it assumes you're taking the slower but cheaper option of using bank transfers only, rather than paying with card or requesting a cash pick-up.
Xoom | Western Union | |
---|---|---|
Transfer fee | $4.99 | $2.99 |
Exchange rate | 1 USD = 18.4242 MXN | 1 USD = 18.8148 MXN |
Transfer speed | Up to 4 business days | 6 business days |
Total Mexican pesos received | MXN$9,120 | MXN$9,351 |
Receiver gets | MXN$231 less | MXN$231 more |
Xoom | Western Union | |
---|---|---|
Transfer fee | $4.99 | $15 |
Exchange rate | 1 USD = 18.4242 MXN | 1 USD = 18.8148 MXN |
Transfer speed | Up to 4 business days | 6 business days |
Total Mexican pesos received | MXN$92,029 | MXN$93,791 |
Receiver gets | MXN$1,762 less | MXN$1,762 more |
In both cases Western Union is a more cost-effective option than Xoom, thanks to its more favourable exchange rates.
Your loved ones will get MXN$231 more with Western Union than Xoom when sending $500 and MXN$1,762 more with Western Union than Xoom when sending $5,000.
Xoom adds a margin to the exchange rates it offers customers. This varies depending on currencies and other factors and can range from less than 1% to over 3%.
Here's an example of USD to EUR:
This ends up being a margin of 0.87%.
Western Union's margins on international transfers also vary widely and can range from around 1% to more than 5%, depending on the situation.
Here's an example of USD to EUR:
This ends up being a margin of 2%.
Winner: Tie
Both Xoom and Western Union have varying margins, and neither is consistently better than the other.
Xoom transfers vary depending on the location, and might be processed by the same or next day in some cases, while taking up to four business days in others. Transfers of $10,000 will also take an additional 2-3 days on top of the norm.
Western Union bank transfers can take around three days on either end, adding up to six business days if you both send money through a bank transfer, and the recipient receives it the same way. It offers consistent express options for cash pick-ups around the world though.
Winner: Western Union
Western Union can consistently offer transfers within minutes for cash pick-ups all around the world. Meanwhile, Xoom transfer times vary widely and are dependent on making a deposit early enough in the day.
Payment methods | Receiving options | Maximum and minimum transfers | Transfer speeds | Currencies | |
---|---|---|---|---|---|
Xoom | Bank transfer, credit card, debit card | Cash pick-up, bank transfer | Minimum: $10 Maximum: $10,000 | 2-3 business days | 20+ currencies |
Western Union | Bank transfer, credit card, debit card, cash | Cash pick-up, bank transfer | Minimum: $1 Maximum: $50,000 | Same day | 100+ currencies |
To send money with Xoom, you'll need a US or Canadian bank account. With that, you can sign up for an account online or by downloading the Xoom app. You can also log in with a PayPal account, but you won't be able to draw on your PayPal account balance for Xoom transfers.
Once you're signed in, you can send money online through Xoom.
You'll need to create an account if you want to send money online through Western Union, but you won't need to if you'd rather go to a Western Union branch or make a payment over the phone.
In all cases, you will need to have the recipient's details on hand and be able to make a payment before you can send money overseas.
It's neck and neck! Whether Xoom or Western Union is better for your needs depends on the situation. Neither will always be faster or more cost-effective than the other, so it's worth getting a quote from each to see which comes out on top.
It's worth comparing a wide range of options beyond Xoom and Western Union to see if you can save money on your next transfer.
The calculator below can make it much easier. Just enter the details of your transfer below, and it will crunch the numbers to see how much different providers may cost.
The "Rate" and "Amount Received" displayed are indicative rates that have been supplied by each brand or gathered by Finder.
Exchange rates are volatile and change often. As a result, the exchange rate listed on Finder may vary to the actual exchange rate quoted for the brand. Please confirm the actual exchange rate and mention "Finder" before you commit to a brand.
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