Introduction
PayPal and Xoom are both digital money transfer platforms that provide convenient and secure ways to send and receive money online. While both services offer similar features, there are key differences that set them apart.
Transfer Speed: One of the major differences between PayPal and Xoom is the transfer speed. PayPal offers instant transfers within its network, allowing users to send money to each other in real-time. On the other hand, Xoom may take a bit longer to process transfers, typically within a few hours or up to 48 hours, depending on the recipient's location and the method of payment.
International Transfers: PayPal and Xoom differ in their international transfer capabilities. While PayPal supports international transfers to more than 200 countries and regions, Xoom focuses primarily on serving customers who want to send money internationally. Xoom provides a wider range of destination countries and additional services, such as bill pay and mobile reloads, making it a more comprehensive option for international transfers.
Fees and Exchange Rates: Another significant difference between PayPal and Xoom is in their fees and exchange rates. PayPal charges transaction fees that vary based on factors like the country, currency, and transaction amount. Additionally, when sending money internationally, PayPal may apply an exchange rate markup. In contrast, Xoom offers predictable and competitive exchange rates with no hidden fees for international transfers, making it a cost-effective choice for sending money abroad.
Payment Options: PayPal and Xoom also diverge in terms of payment options. PayPal allows users to send money using various funding sources, including bank accounts, credit or debit cards, and PayPal balances. Xoom, on the other hand, mainly focuses on bank account transfers and credit or debit card payments, making it more streamlined for individuals who prefer these payment methods.
Transfer Limits: Both PayPal and Xoom have different transfer limits. PayPal's transfer limits depend on the user's account type and verification level, which can be increased by providing additional information. Xoom, on the other hand, has predefined limits that vary based on the recipient's location, with higher limits available for verified accounts. Therefore, if you have specific transfer limit requirements, it is important to consider which platform suits your needs better.
Customized Services: Xoom offers additional customized services that are not available on PayPal. For example, Xoom allows users to pay utility bills and reload mobile phones in select countries, providing added convenience for users who frequently make these types of payments. This feature is not available through PayPal, making Xoom a more versatile option for users seeking a wider range of services.
In summary, PayPal and Xoom differ in transfer speed, international transfer capabilities, fees and exchange rates, payment options, transfer limits, and additional customized services. Choosing the right platform depends on your specific needs and preferences, as both services provide secure and reliable options for sending money online.
What are some alternatives to PayPal and Xoom?
Stripe
Stripe makes it easy for developers to accept credit cards on the web.
WePay
WePay helps people sell tickets to events, send invoices, sell items online, and accept donations online. WePay also provides an API that allows developers to access its payments platform.
Payoneer
It is a financial services company that provides online money transfer and digital payment services and working capital solutions
TransferWise
It bypasses pricey international payments entirely by using two local transfers instead of one international transaction. If you want to convert your pounds to euros, you send the money in pounds to its UK-based account.
Braintree
Braintree replaces traditional payment gateways and merchant accounts. From one touch payments, to mobile SDKs and international sales, we provide everything you need to start accepting payments today.
