Xoom (XOOM) and Western Union (WU) are both suitable money transfer services for customers who need to send payments to distant locations quickly.
The two firms, which were founded precisely 150 years apart, provide identical services, but with substantial changes in the method monies may be transmitted,
the locations to which they can be delivered, and the recipients who are authorized to collect them.
Key Takeaways
- PayPal offers a versatile online payment system, Xoom focuses on international money transfers, and Western Union enables sending cash worldwide through physical locations.
- Transaction fees vary: PayPal charges for receiving payments, Xoom bases fees on transfer amounts and destination, and Western Union’s fees depend on the transfer method and destination.
- Western Union supports the highest number of countries, while Xoom offers faster transfers to select locations, and PayPal excels in online transactions and e-commerce.
PayPal Xoom vs Western Union
PayPal is a widely used payment platform that allows users to make online purchases and send money to other PayPal users. Xoom is a subsidiary of PayPal that specializes in international money transfers. Western Union is one of the world’s oldest and most well-known money transfer companies.
Xoom began as an electronic funds transfer business in 2001 and has now expanded to cover over 159 countries around the world.
Financial transactions, airtime top-ups, and cash withdrawals are all feasible accompanying a standard bank transfer on Xoom’s digital format platform, which focuses on reasonable prices and convenient pay-out alternatives.
PayPal purchased Xoom in 2015.
Western Union Alliance was established in 1850, rendering it one of the market’s oldest cash transfer companies.
The corporation has a massive network of agent sites for tangible transfers, but in recent times it has also made significant efforts to modernize
and digitalize its facilities to combat the myriad transfer start-ups that have focused on easy online transactions.
Comparison Table
| Parameters of Comparison | PayPal Xoom | Western Union |
|---|---|---|
| Lower Fees | Xoom imposes a price for each cash payment you make, however, the actual amount will fluctuate. | The costs charged by Western Union will indeed vary based on the region to which you are transferring money. |
| Exchange Rates | Xoom adds a premium of 1 – 3 percent to the mid-market cost. | The common view appears to be that the corporation adds a margin of 3–6% to the rate of conversion. |
| Faster | According to Xoom, transactions are routinely handled to the recipient’s bank within minutes. | However, if you choose a financial institution deposit, disbursements might take up to 7 business days. |
| Ratings | On Customer reviews, Xoom has almost 21,000 ratings with an approximate ‘Outstanding’ rating of 4.5 out of 5. | Western Union has almost 17,000 Ratings and reviews evaluations and an aggregate ‘Standard’ rating of 3.3 out of 5 stars. |
| Features | Xoom also allows subscribers to transmit money for bill reimbursements and cell phone prepaid top-ups. | Whenever you begin your transaction, Western Union will provide you with tracking information, which is a handy function. |
What is PayPal Xoom?
Xoom is a PayPal platform that permits you to send payments internationally to friends and relatives.
You may use Xoom to transfer cash to a user’s financial account, debit card, or mobile PayPal account, transfer funds for pick-up or transport, pay overseas bills and refill a prepaid phone.
That is, you may only transfer money to your colleagues and family and pay their expenses.
They have several safeguards in place to ensure that monies are being moved for personal use and that they maintain within their area of service.
Xoom is for those who are acquainted with all parts of the internet. They feature a fantastic web interface and an incredibly simple app that allows you to evaluate their costs, set up deposits, and track the progress of your transfer.
Financial transactions for your family members and friends are among the supplementary services offered by Xoom.
Xoom accepts a wide range of major and minor currencies for international transactions. They provide over 100 currencies in total for the 130 accepting nations.
The speed of your Xoom transaction is determined by the type of payment and the proximity of your receiver. Transfers made using credit or debit cards arrive in moments.
However, unusual currencies are more expensive, and bank-to-bank transactions take much longer (3-5 days).
What is Western Union?
On the contrary, Western Union provides both personal and commercial transactions.
They have a global network of partner locations, making it simple to facilitate small and big transactions for personal and corporate needs.
You may make transfers digitally, in cash at agent branches, via their app, or over the phone using Western Union.
Basically, Western Union has your backup whether you prefer to do everything electronically or need to communicate with a live person during the procedure.
Western Union now provides a prepaid debit card in addition to expenses and business transactions. Western Union permits applications from more than 70 nations and allows you to give funds to more than 200 countries.
Western Union’s exchange values will be calculated using the market’s official rates and a margin.
Generally, you’ll pay a total of a 6% premium on the exchange rate, as well as a transfer charge dependent on the transfer type, pay-out mechanism, and velocity of the transfer.
Western Union accepts 130+ banknotes in their 200+ recipient nations.
Not all sending countries accept all 130+ denominations, however, you may check accepted currencies for your nation on Western Union’s location-specific website.
Main Differences Between PayPal Xoom and Western Union
- If you wish to send money to a company, you’ll require to use Western Union. Customers can only send to adjacent users using Xoom (family and friends).
- Customers may only use Xoom to send payments from their bank wallet, debit or credit payment, or PayPal profile. Western Union allows cash for currency transactions since it has physical facilities with agents all over the world.
- Xoom advertises quick transfers in several countries, and the firm frequently has little influence over the actual transfer to the recipient’s wallet. Because Western Union has its brokers throughout the world, it can assure timely delivery.
- The Xoom website is available in 12 languages, and you may email or phone customer care for help. Western Union’s website allows you to make worldwide transfers to customers all over the world.
- Xoom is less expensive than Western Union when it comes to overseas money transactions. As it does not incur the burden of operating physical locations like Western Union.
- https://boj.org.jm/uploads/pdf/papers_pamphlets/papers_pamphlets_An_Investigation_of_Recent_Trends_in_the_Remittance_Industry__Evidence_from_Jamaica.pdf
- https://tesi.luiss.it/id/eprint/29849
Last Updated : 13 July, 2023
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.
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