The Internet has revolutionized payments and money transfers, so now we are going to see what Xoom is and we will explain how this remittance service owned by PayPal works, designed for migrants to send cash to their countries of origin through the web or the apps.
The full name of Xoom is “Xoom, a PayPal service” since the purchase was closed in 2015. An important aspect, because when sending money internationally, security is key, so having a well-known company behind helps.
We recently explained what Bizum is , a platform to send small payments within Spain, and in this case we focus on abroad. In particular, Latin American, Asian and African countries , whose inhabitants work in Europe or the United States, and want to send money to their loved ones .
Xoom, in particular, has three basic functions :
- Send money almost anywhere in the world (136 countries).
- Recharge mobile phones from foreign operators.
- Pay bills from other countries.
Sending money, the key function of Xoom
The main utility of Xoom is to send money home easily, even to people who do not have a bank account . Due to its international focus, it works a little differently depending on the location.
Let’s see the options for who sends the international remittance and who receives it:
- Sending the money : bank account, credit or debit card.
- Receipt of money : bank account, office collection or hand delivery by courier.
In theory, Xoom could be used to send money from a Spanish bank account to a French one, for example, but it is not its specialty, as the bank itself does that well. The value of Xoom appears on transfers to areas where not everyone has a bank account.
For example, we could send money to Latin countries such as Colombia, Ecuador or Venezuela , Eastern Europe such as Romania, Bulgaria or Ukraine , countries of the Asian subcontinent such as China or Pakistan , or Africa, such as Morocco and Cameroon .
Xoom claims that delivery is always fast, but of course it depends on the circumstances. In each place it works through local partners, with different schedules, laws and ways of working.
Shipments are nominative , so the recipient must identify himself for the collection , which will be made with cash, going to a bank branch, a specialized office or other establishments.
In some countries there is the possibility that a courier will go to the recipient’s home and deliver the money in hand. This no longer depends on Xoom, but on the partners in each region, the most common being pick-up at the window.
Not surprisingly, Xoom works based on the fees it charges for managing remittances. In general, this subject is handled with transparency, clarifying at all times the key figures:
- The amount we send in the currency of origin (euros, dollars, pounds …)
- The amount the recipient will receive in their local currency (pesos, dirham, yuan …)
- Xoom’s commission.
- The total we pay (money sent + commission).
These details are key, since those who have recently arrived in a country may not handle the language very well, and both the web and the Xoom apps are clear, so there is no confusion.
Of course, Xoom also applies a commission when converting currencies , about which is much less clear. In that sense, it is worth comparing other competing services, to see which one charges less for the conversion at all times.
Charge mobiles and pay bills, two useful extras
Sometimes we prefer to know what exactly what we send is spent on, and for this Xoom allows us to pay a pending invoice , or to charge a prepaid mobile . The remittance service reaches almost any country (136 in total), but these others are more limited.
Let’s see which are the supported countries:
- Mobile recharge : Argentina, Bangladesh, Bolivia, Brazil, Cameroon, Chile, China, Colombia, Costa Rica, Ecuador, El Salvador, Philippines, Ghana, Guatemala, Guinea, Honduras, Kenya, Morocco, Mexico, Nicaragua, Nigeria, Pakistan, Panama, Paraguay, Peru, Poland, Dominican Republic, Senegal, Singapore, Tunisia, Uruguay and Vietnam
- Bill payment : Colombia, Costa Rica, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Dominican Republic and Vietnam.
How to use Xoom, step by step
Let’s see how Xoom works in practice , which can be used through its apps (Android and iOS) or the web. We will carry out the tutorial from the website, as it is more versatile, and it works on mobile phones, tablets or computers.
- We enter the xoom.com websites in the web browser (mobile or PC), or from this link:
Web: Xoom
- If we do not have an account, we register by indicating our name and surname, apart from an email, mobile number and password:
- Once we have the account, the upper menu will show us the options of “Send money” , “Reload invoices” and “Reload” :
- If we choose the option “Send money”, the process begins by choosing the destination country :
- We have chosen Bolivia for the example, with the possibility of using euros, dollars, pounds and Canadian dollars from the original currency , while for the delivery we can choose between dollars or Bolivians
- The summary indicates what we are going to send, what the other person receives, the commission and the total to pay:
- There is a semi-hidden commission in the exchange rate , so it might not be the most advantageous for us.
- In this case, the recipient may receive a bank deposit or collect the cash at the counter , at our choice:
- When choosing cash pickup, Xoom displays the entities to choose from , depending on the country:
- Below we will give the exact data of the recipient , who must show the legal identification in their region:
- Before choosing the payment method, Xoom will probably ask us to fill in more personal information about ourselves:
- Finally Xoom asks us for the payment method , which in this case can only be a credit or debit card (not a bank account):
- With this we will have finished, there is only one last screen that summarizes the data . After reviewing them, and if everything is fine, the transaction will be effective by clicking on “Authorize payment” .
- Now we will indicate to the other person that the shipment has been made, taking into account the term established by Xoom (which depends on the country, time zones, opening hours …)
Some tips on Xoom
We must be cautious, because of how a remittance service (Xoom, Western Union, MoneyGram, Ria …) works, their plans are the favorites of the scammers, because they do not allow us to recover the money. Let’s look at some important safety tips :
- Frauds such as the Nigerian scam , false remote romantic relationships, viruses that ask to call fake technical services , rentals that simulate an Airbnb website … they often use this type of service to ask for money.
- Only send funds to acquaintances, not on behalf of others, as it could lead to legal problems.
- If they offer you something “too good to be true” and you have to pay for it, it will surely be false.
- It is not usual with this kind of platforms to pay an online purchase, a rent, a monthly salary … if they ask you, it should be a reason for mistrust.
Shipping limits in Xoom
Xoom works with a 3-level user system , to prevent money laundering or its use for illegal purposes. Leveling up to send larger quantities requires providing supporting documentation.
Let’s see the shipping limits and documentation for those who reside in the European Union:
Level 1
- 1,000 euros a day.
- 3,000 euros every 30 days.
- 6,000 euros every 180 days.
The basic level only requires the information of the profile that we fill in online, although when exceeding 500 euros they could ask us for more information.
Level 2
- 10,000 euros a day.
- 20,000 euros every 30 days.
- 30,000 euros every 180 days.
Accessing level 2 requires sending an official document (NIF or NIE, passport, driving license, residence permit …) and an invoice showing our address (water, electricity, fiber …)
Level 3
- 10,000 euros a day.
- 30,000 euros every 30 days.
- 60,000 euros every 180 days.
In addition to the identity document, they ask us for a bank statement or payroll , and answer some security questions by email.
Now you know what Xoom is , an online service that avoids wasting time sending money abroad from a physical establishment. Seeing how it works and how simple it is, it is a good alternative, but we must always compare commissions and exchange rates to find the most advantageous.
