Difference Between PayPal Xoom and Western Union

Edited by Diffzy | Updated on: September 14, 2022


Difference Between PayPal Xoom and Western Union Difference Between PayPal Xoom and Western Union

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Xoom (Xoom) and western union (wu) are convenient money transfer services for customers who need to quickly send funds to distant locations. The two companies, founded 150 years apart, provide comparable services but with substantial differences in the ways monies can be transmitted, the destinations to which they can be sent, and the recipients authorized to receive them. Western Union is one of the oldest money transfer businesses globally, while Xoom is a PayPal international money transfer app.

PayPal Xoom vs Western Union

The critical difference between PayPal Xoom and western union is that it only allows users to send money digitally via their smartphone, tablet, or computer. Customers can make transactions with the western union over the phone, online, in person, or at one of the company's more than 100,000 ATMs across the world. Xoom does not have as many countries as the western union. Xoom is more affordable than western union.

Xoom started as an electronic funds transfer company in 2001 and has since spread to over 159 countries. On Xoom's digital format platform, which emphasizes cheap rates and convenient payout options, financial transactions, airtime top-ups, and cash withdrawals are all possible alongside a regular bank transfer. In 2015, PayPal bought out xoom.

Western union alliance is one of the market's oldest money transfer providers, founded in 1850. The company maintains an extensive network of agent sites for physical transfers. Still, it has recently made significant steps to modernize and digitize its operations to compete with the slew of new transfer start-ups that have concentrated on quick online transactions.

Difference Between Paypal Xoom and Western Union

Table: PayPal Xoom vs Western Union
Parameters Of Comparison
Paypal Xoom
Western Union
Lower fees
It imposes a price for each cash payment. However, the actual amount fluctuates.
The costs charged vary based on the region to which one is transferring money.
Exchange rates
It often adds a premium of 1 – 3 per cent to the mid-market cost.
aThe corporation adds a 3-6% margin to the conversion rate.
Transactions are routinely handled to the recipient's bank with minutes.
If one chooses a financial institution deposit, disbursements might take seven business days.
It has almost 21000 ratings, with the rating of 4.5 out of  5
It has 17000 ratings with the rating of 3.3 out of 5

What Is Paypal Xoom?

Paypal's Xoom is all about speed. The web-based business, which began operations in 2001, completes the majority of transfers in minutes. Depending on the country, you can send money from the united states to over 160 countries with various delivery choices, including deposits into bank accounts and cash for pickup. However, you must submit any personal information to send more significant money. Xoom has average exchange rate margins compared to its competitors, and its markup rates over the mid-market rate are also on par.

Best for

People want to send vast quantities of money quickly, even if it involves giving out personal information.

The Advantages Of Using Xoom

  • If you use a bank account to finance your account, it will be less expensive. Xoom charges $4.99 or less for bank account transfers to various destinations, regardless of the amount sent.
  • Xoom is a lightning-quick platform. Even transactions funded using bank accounts, which might take up to a week with some competitors, can arrive in minutes in most circumstances.
  • Verified accounts have high transfer limitations. By authenticating personal information on xoom, you can send up to $100,000 each day to a recipient's bank account.
  • Minimum transfer to shift money with Xoom. You'll need to transfer at least $10.
  • The website is user-friendly. You can view your transfer's feeds, speeds, and delivery choices without logging in because Xoom organizes its website by the destination country. There is a tool for returning customers to send a transfer quickly. The frequently asked questions are well-organized and easy to understand.
  • Customer service is available in a variety of languages. If you require assistance over the phone in the united states or Canada, agents understand English, Spanish, French, and Filipino. Email assistance is also available in Vietnamese and Chinese.
  • On google play, the app is rated 4.7 stars, and on ios, it is rated 4.8 stars.

The Drawbacks Of Xoom

  • Some places require more time - according to the company's website, some deliveries can take up to a few days. However, several competitors' bank deposits take longer.
  • To transfer more significant amounts, personal data must be verified. If you merely have a basic profile on the service, you can send only $2,999 every day.
  • Some forms of assistance are missing - there is no live chat assistance available with several other companies.
  • High costs apply to card funding - with a credit or debit card, you'll pay about $90 to send $2,999 to several popular destinations, which is the daily maximum for a user who has completed a basic profile and hasn't validated additional information with Xoom. Additional fees, such as interest and cash advance fees, may be added by your credit card issuer.

Methods And Choices For Xoom Transfers

Xoom provides several payment options. The alternatives are as follows:

  • Xoom's website and mobile app are used to send messages.
  • Many internet services accept payment via bank account, debit card, or credit card. One can also use your PayPal account to make a payment.
  • Bank deposit at the recipient's bank, cash collection at a venue such as a bank or retail store in many countries, and delivery directly to the recipient's house in a few countries are available delivery methods.
  • Limits on transfers: $2,999 per day if you merely have a basic profile on the site; $50,000 per day to a recipient's bank account if personal information is verified through Xoom.

Advice On Foreign Money Transfers In General

Compare the costs of transfers from various providers.

There are two types of costs: an upfront fee and a markup on the exchange rate. Find the company that offers the most pleasing combination of minimal fees and the best exchange rate. Nonbank internet companies usually offer cheaper transfers than banks.

Understand how currency exchange rates function (and how to find the best).

The price of one currency concerning another is known as an exchange rate. If you wish to convert us dollars to euros, you will look up how much one us dollar is worth. Focus on the foreign currency amount when checking the exchange rate for an overseas transfer using services like western union. The higher it is, the more money is given to your beneficiary.

Credit cards should be avoided.

Some suppliers offer it, but it may come with a larger upfront price and additional costs such as interest and cash advance fees from your credit card issuer. Use a debit card instead of a credit card if you need money immediately. Transfers made directly from a bank account are typically slower.

What Is Western Union?

Western union allows those who do not have access to traditional banking services to send money from one person to  the another person and from one location to another. It has substantial market dominance as one of the top money transfer firms, allowing it to dictate to clients on matters like transfer prices and terms. It is a frequently costly option that can nevertheless be useful for folks who need to move money quickly. While it has limited commercial applications, it is a valuable tool for personal usage. With this in mind, it's worthwhile to look into how western union works.

Western Union is the largest of the two corporations, and its one-time monopoly of the telegraph sector has given it an instant global reputation. In 2006, the company stopped sending telegrams, but it had already moved to new endeavours. Western Union has around 500,000 agent locations in over 200 countries worldwide. Customers can send money by phone, online, or in-person with western union.

Fees vary depending on several criteria, including the payment method, the speed with which the money is delivered, whether the money is paid in cash or wired to a bank, and the sender and recipient's locations. The exchange rate adds another layer of unpredictability to overseas payments.

The Advantages Of Western Union

  • Registration is available in 70 countries, with transfers to more than 200 countries (including us, the UK, Europe, Australia, New Zealand, Asia, and the middle east)
  • Payouts, bill payments, and mobile wallet transfers are all supported.
  • Make a transfer online, in person, or over the phone.
  • Transfer speeds can be changed at any time.
  • Debit card with a balance on it
  • Transfers between individuals and businesses

Negative aspects of the Western Union

  • Reasonably costly service
  • The fee structure is complex.
  • Bad feedback

Why should you use western union to send money to a bank account?

The following are the top five reasons:

Clear fees

If you wish to send money to a friend's bank account in another country, banks demand exorbitant fees in many parts of the world. Sending money from one bank account to another can be complicated and costly due to hidden fees and complicated exchange rate computations. Western union is your service if you seek a quick and easy way to move money from one bank to another. One always knows the exchange rates and costs before conducting a transaction with western union's money transfer services.

Allow loved ones to receive money with ease.

The most common reason people send money using western union is to support family and friends. People transfer money for various reasons, one of which makes life easier for others they care about. Even if you can't be there in person, you may rest assured that they'll be financially taken care of. Sending money to a bank account with western union eliminates the need for your recipient to leave the house. There will be no lineups, no waiting, and only the money your loved one requires on their account.

Transfers that are simple to duplicate

We feel that sending money to another bank account via the internet is a sensible way to do so and that it should be as simple as possible. If you make regular transfers to an international bank account, you should only need to enter the recipient's information once. With the western union app, you can effortlessly remember your receiver's bank account information and make repeat transfers from the convenience of your own home or while on the road.

International investment financing

Anyone wishing to invest in a foreign country has to be able to make substantial payments in a secure and easy-to-track manner. The maximum amount one can send to a bank account varies depending on the sender and receiving countries. If one has any issues with transfer limits, you can always contact our customer service. We understand the importance of having peace of mind, especially when sending considerable sums of money to another country. Thanks to the MTCN (tracking number), you may rest easy knowing that your receivers can follow every international money transfer in real-time, thanks to the MTCN (tracking number).

Acceptance by everyone

Not everyone is willing to accept cash when paying for products in other countries. It is simple to pay mortgages and other bills in a foreign country when you can transfer money to offshore accounts. The ability to conduct repeat transfers makes paying monthly bills straightforward, but it also eliminates the need to open a bank account in a different country.

Main Differences Between Paypal Xoom And Western Union in Points

Western Union and Xoom are distinguished by the number of countries they serve and how they transmit cash.

Rates and fees

Xoom enables international money transfers at a lesser cost than the western union for the most part. Because Xoom does not have the overhead of operating physical locations like western union, it can charge lesser fees. Keep in mind that the costs charged by Xoom and western union differ depending on your location, the country to which you're sending money, your funding source, the payout currency, and the total amount transferred. The vast bulk of Xoom's transactions is transmitted to Mexico and the Philippines, where they are funded with a bank account and disbursed in local currency. Western Union, on the other hand, may offer superior exchange rates. A $600 payment to Mexico in July 2020, for example, would net the beneficiary 13,598 pesos via wu but only 13,400 pesos via Xoom.

Recipients eligible

If one needs to send money to a company, you'll need to use western union. Xoom only allows customers to send money to other consumers (family and friends). Still, the western union allows consumers to send money to other consumers and businesses and pay bills.

Money transfers

Customers can only use Xoom to send money from their bank account, debit or credit card, or PayPal account. Western Union accepts cash for money transfers since it has physical locations with agents worldwide.


Even though xoom advertises quick transfers in several countries, the company frequently has little influence over the actual delivery to the recipient's account. This is because processing times vary by bank. 4 western unions, on the other hand, can guarantee speedy delivery because it has its agents worldwide.


It's a close race! Whether you should use Xoom or western union depends on the situation. Because neither will always be speedier or more cost-effective, it's essential to receive quotes from both to determine who wins. The cost of a transaction varies greatly depending on how you wire money, where you deposit it, and how it is collected when using a money transfer service. Money can be transferred in several ways, including via internet platforms. Western Union and Xoom both have a lot going for them and are well-known money transfer firms.

However, when all factors are considered, Xoom outperforms western union, particularly in pricing and transaction timescales. Despite western union's many years of experience in the transactions business, Xoom's electronically centred approach assures that it can offer low pricing and hassle-free help.


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"Difference Between PayPal Xoom and Western Union." Diffzy.com, 2023. Mon. 20 Mar. 2023. <https://www.diffzy.com/article/difference-between-paypal-xoom-and-western-union-656>.

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