Xoom vs Western Union

Xoom charges a fee for each money transfer you make, but the exact amount you will be charged will vary depending on the payment method you select, the amount you are sending, the country you are sending to and from, and the delivery method you choose.

As an example, if you were sending £200 to Australia, you would pay a fee of £1.99 for a bank deposit, and £6.99 for a cash pickup.

Western Union’s fees will also vary depending on the country you are sending money to, the amount you are sending, your payment method, your payout method, and whether you are sending the money online or at an agent location.

Using the same example, a £200 transfer to Australia would incur fees between £1.90 (for a bank deposit paid for by card), to £9.90 (for a cash pickup paid for in cash).

Xoom tends to add a markup of around 1 - 3% on the mid-market rate, although exactly how much this markup will be depends, again, on the specific details of your transfer. Variables that will affect this include the currency pair you are transferring between, and the sum you are sending.

Exactly how much of a markup Western Union adds onto the mid-market rate isn’t made clear, but the general consensus seems to be that the company adds a margin between 3 - 6% on the exchange rate. Again, this can change depending on where you are sending your money, your payment method, and how much you are sending.

Xoom supports international transfers to 159 countries currently.

Western Union supports international transfers to over 200 countries currently.

Xoom says its transfers are typically processed to the recipient’s account within a matter of minutes, which is often the case when you select the delivery method as a cash pickup. Transfers to and from bank accounts, however, could take up to a couple of working days.

Western Union also advertises its transfer times as taking just minutes to process (specifically for cash delivery), although transfers can take up to 7 working days if you select a bank deposit. This can also be affected by the sum you are sending or the country you are sending to.

Xoom’s payment options include credit or debit card, bank transfer, or using your PayPal balance. Payout options include cash pickups, bank deposits, or making an airtime top-up.

Western Union’s payment options include credit or debit cards, bank transfer, or cash. Payout options are either cash pickups or via bank deposit.

Xoom has over 21,000 reviews on TrustPilot with an overall ‘Excellent’ rating of 4.5 out of 5. Amongst the positive reviews, users frequently praise the company’s faster transfer times, easy-to-use website, and competitive rates.

Some users do note their transfer time being delayed due to the provider’s verification process, which can require a valid form of ID for larger sums.

Western Union has over 17,000 reviews on TrustPilot and an overall ‘Average’ rating of 3.3 out of 5. Amongst the positive reviews, users particularly praise the numerous agent locations (over 500,000) Western Union has placed around the globe, making international transfers easy and accessible for millions of people.

Negative reviews, however, frequently mention delayed or lost transfers, expensive rates, and a lack of customer service.

Xoom’s website supports 12 languages, with the ability to email or call customer service for assistance with your transfer. They also have a help centre which addresses a lot of commonly asked questions.

The Xoom app allows for 24/7 access to your transfers, with a user-friendly interface that really emphasises the company’s focus on digitally-led international transfers. The app is free and available on both iOS and Android.

For security, Xoom has a verification process to protect your identity, typically requiring you to upload a driving licence or passport. For large sums of money, you may also be asked to upload a bill and proof of address. Xoom uses 128-bit data security encryption to keep any information sent between your web browser and their website secure and use both SMS notifications and 2-factor authentication to keep your money secure when arranging international transfers.

Western Union’s website supports a number of languages to make international transfers to people globally and also has customer support in the form of email, phone, or visiting an agent location directly.

The app is available in English, Spanish, and Mandarin, and was designed with the purpose of making online transfers more convenient for people wanting to avoid travelling to agent locations.

Western Union does have a verification process to keep identities safe, requiring users to upload a valid form of ID when initiating larger transfers. In addition, the provider has implemented Software Composition Analysis (SCA). This is a customer authentication security layer applied to both payment booking and account access and manipulation. It is part of the two-factor authentication (2FA) security protocol.

As well as international money transfers in cash or sent to a bank account, Xoom also provides the option for users to send money for:

• Bill payments

• Mobile airtime top-ups

These services can be particularly popular for users sending money to support family back home.

A useful feature Western Union includes is providing you with a tracking number after you initiate your transfer, enabling you to communicate with the recipient on when they should expect the receive the money you have sent.

Sending $200

Sending this amount would incur fees between £4.99 and £6.49, with delivery by cash pickup being cheaper than a bank deposit. The exchange rate would be 1 USD = 1.3407 SGD (at the time of writing), with cash pickups available in minutes while bank deposit would take up to 2 working days.

Sending $1,000

Sending this amount would have the same exchange rate, but would incur fees between $4.99 and $30.49, with a bank-to-bank transfer being the cheapest option, and a bank deposit paid for by card is the most expensive. Transfer times remain the same, between a couple of minutes and up to 2 working days.

Sending $20,000

The importance of selecting your payment method carefully really shows here, as a transfer paid for by bank account would incur a fee of $4.99, but paying by credit or debit card would cost you $601.49. Transfer time would typically take around 2 working days, although for this sum you may need to provide additional verification details before your transfer is processed.

Sending $200

Sending this sum, you would get an exchange rate of 1.00 USD = 1.3494 Singapore Dollar (SGD) (at the time of writing). You could expect to pay fees between $0 for a transfer from a bank account to the recipient's bank account, up to $12 when paying for a cash pickup via credit card. The predicted service time is within minutes for a cash pickup, and to 3 business days for a bank deposit.

Sending $1,000

Fees for sending $1,000 vary from $0 - again, for a bank deposit paid for from your bank account, to $34 for a cash pickup paid for by credit card. A cash pickup paid for by debit card would be $7, whilst a bank deposit paid for by debit card would be $2.99. Transfer times range from 0 - 7 business days, which unfortunately aren’t specified much beyond that.

Sending $20,000

The exchange rate changes to 1.00 USD = 1.3590 SGD for this sum. Cash pickup is no longer an option for this sum, nor is paying for the transfer by credit card, debit card, or wire transfer. There are no transfer fees associated with this transfer, however, and the transfer time would be between 0 - 7 business days.