When it comes to online money transfer, there are two names that have gone popular because of their amazing services, thus battling off Transferwise vs Xoom. These online money transfer platforms have been two of the most trusted names in the industry. Let’s find out how both fair from each other.
If you are working from home or working as a freelancer, or perhaps you are the boss hiring people from other parts of the world, most likely you have already encountered different online money transfer platforms, and perhaps the very reason why you are reading this is that you are looking for the perfect tool to be able to either receive or send money, respectively.
Online money transfer platforms like Transferwise and Xoom are just two of the most well-known and commonly used tools to send and/or receive money. But which among the two is better? That is exactly what we are going to talk about today.
But before that, allow us to share with you first some very interesting facts from Statista about digital remittances where both Transferwise and Xoom falls:
- First, they found that the transaction value in the Digital Remittances segment amounts to US$21,297m in 2020;
- Second, the transaction value is expected to show an annual growth rate (CAGR 2020-2023) of 12.6% resulting in the total amount of US$30,423m by 2023;
- Third, by 2023, the number of users is expected to amount to 2.4 million;
- Fourth, the average annual transaction value per user in the Digital Remittances segment amounts to US$13,315.0 in 2020; and
- Lastly, the highest transaction value in this segment in the world is reached in the United States (US$21,297m in 2020).
So, why are we sharing these with you? Well, we want to make a point here. We want you to know that digital remittance is becoming big. Well, it is not surprising, to be honest, given the fact that it is very convenient, and that it is very easy. Everything can be done in just a couple of clicks. Plus! The big plus is that the rates are quite reasonable.
Of course, rates vary from one platform to another, but to be fair, if you come to think about it, given all the factors like convenience, time, and effort, the money you pay for every transaction is worth it.
Anyway, later on, we are going to tackle that particularly on these two platforms we are making a comparative review today.
Having said that, we are going to tackle the following in particular:
- What Transferwise and Xoom are all about?
- Exchange Rates
- Ease of Use
- Countries Covered
- Customer Service Support
- Pros and Cons
TRANSFERWISE VS XOOM: QUICK COMPARISON
Before we proceed to a more detailed comparative review, here’s a quick look at how different or similar both Transferwise and Xoom are from one another:
|ITEMS FOR COMPARISON||TRANSFERWISE||XOOM|
|Transfer Type||Online Only||Online Only|
|Fee||~0.5%||$5 to $11|
|Minimum and Maximum Transfer Amount||Minimum: $1 Maximum: $199,999||Minimum: $10 Maximum: $10,000|
|Money Transfer Speed||1-2 Days||Within minutes to a few days|
|Currencies||45+ currencies||130+ currencies|
|Payment Methods||Bank transfer, credit card, debit card||Bank transfer, credit card, debit card|
|Receiving Options||Bank Account Only||Bank Transfer, Cash Pickup, Home Delivery|
TRANSFERWISE VS XOOM: BRIEF BACKGROUND
To begin with, our thorough review of both Transferwise and Xoom, let’s take a look at each company. It is important for any user or customer to make time to get to know the company first before you start using it especially when money is involved.
We understand how hard it is to earn money, thus, it is vital to ensure that you are using a dependable and secured money transfer platform especially since it is online.
So, here’s a little information about both companies.
Transferwise is a British online money transfer company based in London. It was founded back in January 2011 by Estonians Kristo Käärmann and Taavet Hinrikus.
Dubbed as the “Robin Hood” of the money transfer industry, the company supports more than 1,000 routes all across 49 currencies. Furthermore, Transferwise is one of the very few companies that offer a true mid-market rate.
Transferwise focus on ensuring that bank transfers are affordable than any traditional banks by charging reasonably low and transparent transfer fees, at the same time, converting money at the true mid-market exchange rate.
To put it simply, there is zero markups on the exchange rate.
As of today, Transferwise supports sending money to 71 countries, and sending money from 43 countries.
Overtime, Transferwise has become one of the top choices if not the top choice when it comes to international money transfers. On top of that, the company is also known for its excellent customer service, and for providing a spectacular user experience (from an easy sign-up process to very efficient money transfers).
While some users find it too good to be true, well, that is precisely what Transferwise is all about — it is good, and that it is true as well. No wonder why the company has massively grown to what it is today.
If you are interested to know more about Transferwise, here’s an informative video by CreativeNomad TV for your reference. Watch the video by clicking the play button below:
Xoom Corporation or popularly known as simply Xoom is an electronic funds transfer or remittance provider that lets consumers send money, pay bills, at the same time, reload mobile phones from the United States, Canada, and Europe to more than 130 countries all over the world.
With Xoom, you can pay using your debit or credit card, or your bank account.
Depending on the country you are sending money to, the money can be received either in cash form, airtime top-up, or simply be deposited in a particular bank account that supports Xoom money transfer.
As earlier mentioned, Xoom can also be used to pay bills particularly in 10 countries, which include Colombia, Jamaica, Honduras, Mexico, Guatemala, Costa Rica, Dominican Republic, El Salvador, Nicaragua, Panama, and Vietnam.
Interestingly, Xoom is owned by a very popular online money transfer company, PayPal. Thus, the services of both platforms are integrated, which means you can use a PayPal-linked bank account, credit card or debit card.
Apart from their website, Xoom is also available in a mobile app form and it is available for both iOs and Android users.
TRANSFERWISE VS XOOM: FEES
Back in the days, people from different parts of the world can only send money through banks or money transfers. Good thing online money transfer companies were established. They have brought an amazing change in the money transfer industry. It definitely made transferring money so much easier and more convenient.
Anyway, but just like any services, online money transfer companies do charge for certain fees. Let’s take a look at how Transferwise and Xoom differ when it comes to this aspect.
As stated on the Transferwise website, the cost of a transfer depends on three important things. These are the amount you’re sending, how you pay, and the exchange rate.
With regard to the amount of money you are sending, the more money you spend, the higher your transfer cost will be. According to Transferwise, that is because “TransferWise fee is worked out as a percentage of the amount you’re sending.” Note that the percentage depends on currency to currency. There is an exception though when you are sending a smaller amount of money. For this, Transferwise charges a cheap, minimum fee.
Now, as to how you pay, this varies depending on where you are sending from. Meanwhile, for the exchange rate, Transferwise ensures you always get the mid-market rate. According to their website, “It’s the one banks use to trade between themselves.”
Same with Transferwise, Xoom’s rate will depend on three things — the amount you transfer, the method of payment, and the destination country.
While there are counties that do not attract any fees, this only applies to those paying using a bank account and that the transfer amount exceeds a predetermined threshold.
Normally, payments that were made using bank accounts do have lower fees as compared to making payments using either a debit or credit card.
If you want to find out how much your transfer might cost, Xoom has an online calculator where you can check that out.
TRANSFERWISE VS XOOM: EXCHANGE RATES
This time around, we are going to look into both platforms’ exchange rates. Let’s see which one is better when it comes to foreign exchange rates.
As mentioned earlier, Transferwise uses mid-market rates, which means the rates are very close to the prevailing market rates. If you want to know though how much the recipient will get ones you make a transfer or vice versa, the company has a calculator, which can be accessed through its website. You can use the tool to check the current exchange rates.
Transferwise will, however, inform you of the actual exchange rate you will get before you make the transfer. Furthermore, the website lets you monitor fluctuations between two currencies.
Furthermore, you can avail of a free sign up for free alerts if you want to keep updated regarding foreign exchange rates on Transferwise.
Just like Transferwise, Xoom does also has an exchange rate calculator, a tool that you can use if you want to have an idea regarding the exchange rates.
Nonetheless, you will know about the rate through the deal confirmation.
TRANSFERWISE VS XOOM: EASE OF USE
One of the things that we look up to when using an online money transfer platform is the ease of use. While rates and exchange rates are important, how easy to navigate the platform is also a very important deciding factor.
Having said that, here’s what we found:
Transferwise is available both on mobile and desktop. You can also make money transfer using either the mobile app (available for both iOs and Android users) or the website. By the way, if it may help, the Transferwise website can be used in different languages, which include English, German, Spanish, French, Italian, Hungarian, Polish, Portuguese, Russian and Japanese.
In terms of the registration process, it is very easy. In fact, you can even use your Google or Facebook account in making an account. When signing up, you can sign up according to how you opt to use the account whether as an individual, a business, or an online seller.
Furthermore, Transferwise allows you to pay using a credit or debit card, or through an electronic bank transfer.
Just the same, Xoom is available using either your smartphone or desktop computer. The mobile app version is also available for both iOs and Android users. Meanwhile, their website can be accessed in French, Spanish, Portuguese, Chinese, and Vietnamese.
Signing up with Xoom is also very easy. It takes just a few clicks to be able to complete the whole registration process.
When it comes to transferring funds, you can transfer money to a bank account, send money to a cash pick-up center, or you can top off mobile phones.
Good thing for U.S. residents, you can also use Xoom to pay bills originating from different countries.
TRANSFERWISE VS XOOM: SECURITY
When we talk about online money transfer, another thing that we take into consideration is the safety and security not just of our personal information, but the money itself. Having said that, here’s what we found about both Transferwise and Xoom’s security features.
Transferwise secures the information you provide online by using high levels of encryption.
Apart from that, if you use your Google account in signing up, you get to take advantage of a two-factor authentication system, which means double the security. Just the same though, Transferwise security has already added two-factor authentication to further their security and safety features.
To add, Transferwise’s operations are regulated by the UK Financial Conduct Authority (FCA).
Just like Transferwise, Xoom also provides a high level of encryption to ensure the security and safety of your account.
Furthermore, it does have the required licenses to operate as an overseas money transmitter, which is issued by different state regulatory bodies in the United States.
Xoom is also registered with the U.S. Financial Crimes Enforcement Network (FinCEN).
TRANSFERWISE VS XOOM: COUNTRIES COVERED
Transferwise and Xoom do have their respective list of countries they serve. If you want to know what countries you can send money to, just like below links:
Transferwise – List of Supported Countries
Xoom – List of Supported Countries
TRANSFERWISE VS XOOM: CUSTOMER SERVICE SUPPORT
Another important aspect when choosing the best online money transfer platform is the dependability and availability of customer service support. Since everything is done online, it is important that someone out there is always ready to help should the user encounters problems while making a transfer, receiving money, or other technical issues.
Transferwise has a live chat, email, as well as phone support that are all available to all — yes, even to non-customers. As mentioned earlier, Transferwise is also known for having excellent customer service support. No wonder as it is very easy to get in touch to one when a problem arises
They do have FAQ and help center as well.
Unlike Transferwise, Xoom does only has email and phone support. Nevertheless, it’s easy to get in touch with customer service support. Also, the FAQ and help center is also available for use.
TRANSFERWISE VS XOOM: PROS AND CONS
This comparative review between Transferwise and Xoom will not be complete without sharing with you the pros and cons of both online money transfer providers.
For some, the pros and cons are the ultimate deciding factors. Having said that, here’s what we found from both platforms:
| They make transferring money simple. Apart from their website, and mobile app, they do have a new Transferwise bot, which is available through Facebook Messenger. |
It offers the ability to carry out batch payments for up to 1,000 recipients, which is ideal for freelancers or self-employed individuals.
It is available both on mobile and desktop. The mobile app is available for both iOs and Android users, while the website is available in English, French, German, Italian, Japanese, Hungarian, Polish, Portuguese, Russian and Spanish.
They do have excellent customer service support, which is available through live chat, email, or phone.
| It does not accept outbound payments from certain places.|
Hardly comparable to other online money transfer providers because of the fees.
Some customers have a concern regarding the verification of identity.
| It can transfer money on-the-go through its mobile app, which is available both for iOS and Android users. |
Money transferred can be delivered through a bank account, in cash, reload airtime, or paying utility bills.
It provides same-day money transfers in a lot of countries.
Have a daily maximum limit amounting to $10,000.
Actively responds to queries and issues through Trustpilot.
| There’s a minimum fee for credit cards amounting to $4.99. |
There’s no live chat customer service support.
They do have higher markups on exchange rates compared to most of its competitors.
FINAL THOUGHTS ON TRANSFERWISE VS XOOM
Both Transferwise and Xoom have gained popularity for a number of reasons. Both have their respective highs and lows, highlights and downsides, pros and cons. Nonetheless, they are equally excellent in what they do – online money transfer.
Transferwise and Xoom are just two of the many companies that provide online remittance services with ease. Because of these companies, sending and receiving money wherever you are in the world was made possible, and it is just amazing, really.
Have you chosen your preferred online money transfer yet?