Xoom vs Western Union: Which is faster and cheaper? | Finder

Xoom vs Western Union

See whether Xoom or Western Union is better for your next money transfer.

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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.

Min. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details
AUD 1 Same day AUD 20.00 0.748 USD
733
Western Union sends money online to friends and family in 200+ countries around the world. Show details

Compare up to 4 providers

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.

Xoom is not available in Australia

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.

Which has lower fees?

Xoom

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

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.

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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.

Let's crunch the numbers: Sending US$500 and US$5,000 to Mexico

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.

Sending $500 to Mexico
XoomWestern Union
Transfer fee$4.99$2.99
Exchange rate1 USD = 18.4242 MXN1 USD = 18.8148 MXN
Transfer speedUp to 4 business days6 business days
Total Mexican pesos receivedMXN$9,120MXN$9,351
Receiver getsMXN$231 lessMXN$231 more
Sending $5,000 to Mexico
XoomWestern Union
Transfer fee$4.99$15
Exchange rate1 USD = 18.4242 MXN1 USD = 18.8148 MXN
Transfer speedUp to 4 business days6 business days
Total Mexican pesos receivedMXN$92,029MXN$93,791
Receiver getsMXN$1,762 lessMXN$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.

Which offers better exchange rates?

Xoom

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:

  • If the mid-market rate is 1 USD = 0.8811 EUR
  • Xoom's exchange rate might be 1 USD = 0.8734 EUR

This ends up being a margin of 0.87%.

Western Union

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:

  • If the mid-market rate is 1 USD = 0.8811 EUR
  • Western Union's exchange rate might be 1 USD = 0.8634 EUR

This ends up being a margin of 2%.

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Winner: Tie

Both Xoom and Western Union have varying margins, and neither is consistently better than the other.

Which is faster?

Xoom

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

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.

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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.

General features

Payment methodsReceiving optionsMaximum and minimum transfersTransfer speedsCurrencies
XoomBank transfer, credit card, debit cardCash pick-up, bank transferMinimum: $10

Maximum: $10,000

2-3 business days20+ currencies
Western UnionBank transfer, credit card, debit card, cashCash pick-up, bank transferMinimum: $1

Maximum: $50,000

Same day100+ currencies

Xoom

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.

Western Union

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.

Bottom line

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.

Looking for more options?

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.

Min. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details
GBP 0 1 - 2 days AUD 3.99 0.77 USD
767
Special offer: $40 off when you transfer more than $250+ with code AUFIND40, conditions apply.
Azimo sends money directly to a bank account or over 280,000 cash pick-up points. It also has fast transfers to 50+ countries.
Go to site Show details
AUD 250 1 - 2 days AUD 15.00 0.766 USD
755
$0 transfer fees for Finder customers.
OFX has no maximum limit transfers, with competitive exchange rates for 45+ currencies.
Go to site Show details
AUD 1 1 day AUD 5.20 0.773 USD
769
Pay no fees on your first two transfers, up to $3,000.
SingX offers the real exchange rate every time you make a transfer and can help you send money across the world.
Go to site Show details
AUD 10 Within an hour AUD 2.99 0.769 USD
767
Special offers like free transfers and better exchange rates available for new customers.
Remitly has quick, affordable transfers around the world, with both express and economy options.
Go to site Show details
AUD 1 Same day AUD 0.00 0.77 USD
770
XE has fast transfers with no fees and a range of foreign currency tools. Go to site Show details
AUD 200 1 - 2 days AUD 5.00 0.773 USD
769
Exclusive: Use code FINDER10 to receive US$10 off your first transaction.
InstaReM offers simple transfers with a flat 0.5% transfer fee for most transfers. Zero-margin rates on some currencies.
Go to site Show details
AUD 5 1 - 2 days EUR 3.00 0.765 USD
763
Special offer: Zero fees on your first 10 transfers.
CurrencyFair has bank-beating exchange rates and fast transfer times on 15+ popular currencies.
Go to site Show details
AUD 1 Same day AUD 3.99 0.772 USD
768
Use promo code 3FREE to send your first 3 transfers with no fee. Conditions apply.
WorldRemit sends money to 110+ countries for bank-to-bank deposits, cash pick-ups or mobile top-ups.
Go to site Show details
AUD 1 1 - 2 days AUD 4.50 0.774 USD
770
Wise uses the mid-market rate and transparent fees to help you send money in 50+ currencies. Go to site Show details

Compare up to 4 providers


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.

More guides on Finder

International Money Transfer Offers

Important Information*
Logo for Azimo International Money Transfers
Azimo International Money Transfers

Special offer: $40 off when you transfer more than $250+ with code AUFIND40, conditions apply.
Azimo sends money directly to a bank account or over 280,000 cash pick-up points. It also has fast transfers to 50+ countries.

Logo for OFX (Ozforex) International Money Transfers
OFX (Ozforex) International Money Transfers

$0 transfer fees for Finder customers.
OFX has no maximum limit transfers, with competitive exchange rates for 45+ currencies.

Logo for TorFX International Money Transfers
TorFX International Money Transfers

TorFX guarantees to match any competitor's exchange rate. Conditions apply.
TorFX sends money overseas in 30+ currencies, with competitive rates for transfer amounts over $2,000.

Logo for Send International Money Transfers
Send International Money Transfers

Send guarantees to match any competitor’s exchange rate. T&Cs apply.
Fee-free transfers in 30+ currencies to over 200 countries.

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