Difference Between PayPal Xoom and Transferwise

Earlier transfer money used to take place in person when paper money was handed in person as there was no digital or plastic money available.


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But after the introduction of digital money and plastic money, the transfer of it becomes quite easier as now people don’t need to meet in person for the exchange of it.

They can transfer using some of the technology that can be connected to their bank directly or have their bank (Paytm bank).

Examples of such platforms are PayPal Xoom, and Transferwise, both of them are used for transferring money online. Despite their same function, there are several differences between both of them.

PayPal Xoom vs Transferwise

The difference between PayPal Xoom and Transferwise is in the feature and advantage it offers to its users. Despite their convenience and easier features, there are some of the features that are present in PayPal Xoom but not in Transferwise. PayPal offers better fees, and it is used in several countries, it transfers money within seconds, it also offers cash payout option which is absent in most of the other similar options, whereas in comparison of it Transferwise it has slightly less good fees structure, it might take some extra time for transferring money, it does not have cash payout option, and is used in fewer locations. Despite its less good features, Transferwise has a better exchange rate and is quite transparent in terms of exchange rate markups.

PayPal Xoom vs Transferwise

PayPal acquired Xoom in 2015, which was first started in 2001 for transferring money. Examples of countries where this can be used for transferring money are China, Mexico, India, Pakistan, etc.

it offers several payout options, including the cash payout option that is still not offered by several similar platforms. It has a better fees structure and transfers money faster.

It also adds markups to the exchange rate, and there is less transparency.

Transferwise was founded in 2011 in order to make a platform for easy money transfer with better fees and a fair exchange rate. It offers transparency to its user with better fees and other functions.

It is preferred by many users over other platforms. It offers several payout options. It has added a new feature of multi-currency accounts and wise debit Mastercard.

Comparison Table

Parameters of ComparisonPayPal XoomTransferwise
FeesBetterComparatively less
Exchange ratesNot as better as wiseFairest exchange  rate
LocationsLarger distributionCovers fewer locations
Transfer timeFasterComparatively less fast.
PayoutOffer cash payoutDoes not offer cash payouts

What is PayPal Xoom?

The final amount after the exchange rate of markups and fees will depend on several things some of them are:

  • The transaction type.
  • Payment method along with the currency using for the transaction.
  • The amount that is transacted.
  • The location or country was the transaction is done.
  • In which currency the recipient is receiving the money. 

The reason why PayPal Xoom is used more is that it is accessible to more locations; it is used or can be used in more than 100 countries.

The transaction can be completed within seconds to few days as it might depend on the currency of money used for transactions. And it offers a cash payout option along with other options as well. 

Pros of PayPal Xoom:

  • It is secure.
  • It is faster.
  • It is supported in around 160 countries. 
  • Several delivery methods and transfer options.

Cons of PayPal Xoom:

  • There is limited transfer.
  • Additional fees that can be higher than others.
  • Delivery might take additional time.
  • Poor exchange rate.

What is Transferwise?

It is transparent when it comes to their exchange rates, and their fees are determined by:

  • The amount that is being transacted.
  • The payment method used for the transaction.
  • Located or country where the money is being transacted.

Wise is not supported in several locations. It is accessible in around 59 countries, but in those, they are preferred the most. It transfers money securely and low cost.  

For payouts, the most used method is bank transfers, and there is no option of cash and check payouts for any currencies.

It is liked by its users due to its transparency and better exchange rates. It offers higher security for transactions in any currency.

Pros of Transferwise:

  • It is faster.
  • It is simple to use.
  • It is cost-effective.
  • It is secure.

Cons of Transferwise:

  • Not available in many countries or locations.
  • It charges a little high fees.
  • It does not have cash or cheque as a payout option.

Main Differences Between PayPal Xoom and Transferwise

  1. If a comparison in terms of fees is made, PayPal Xoom is slightly better due to their beneficial rates, while Transferwise is relatively less beneficial. But one advantage of Transferwise is that there is no additional markup on the exchange rate along with the fees.
  2. Transferwise is a better choice when it comes to exchange rates. Due to their transparency policy, this also makes it a more cost-effective option, whereas there is some additional markup on the exchange rate, and in general also there is no transparency of its exchange rate markups, making it very complex.
  3. There are many places in the world where everything won’t work, especially when it comes to technology and innovation. In the case of Transferwise and PayPal Xoom, this is also an important difference, as PayPal Xoom can be used in several locations that exceed 70 countries, whereas Transferwise cannot be used in many countries. They are used in less than 60 countries.
  4. While in comparison of transfer time, there is a slight difference of 19 or 20. PayPal Xoom is slightly faster as it can transfer money in seconds from one to another person, whereas Transferwise might use few extra seconds than PayPal Xoom to transfer the money.
  5. One of the main advantages of PayPal Xoom is the option of cash payouts. This option allows cash pickups as a payout option, whereas although transferring money with Transferwise is convenient and easy, but it does not offer cash pickups as a payout option.
  6. Although Xoom was founded earlier, together with PayPal, Xoom was formed in 2015 that was later the introduction of Transferwise, which was introduced earlier in 2011.


  1. https://digikogu.taltech.ee/en/Download/387c267c-e8ec-49c9-94f4-b29f6985b6fd/TransferWiseiUSAstMehhikosserahalekannetemj.pdf
  2. https://heinonline.org/hol-cgi-bin/get_pdf.cgi?handle=hein.journals/tlr91&section=28
  3. https://dialnet.unirioja.es/servlet/articulo?codigo=5747402
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