July 26, 2019

Xoom money transfer: in-depth review [for African transfers]

by Jens Ischebeck

About Xoom

Xoom, a PayPal service, is a digital money remittance platform that helps in making transfers from the United States of America to more than 30 countries across the world.

Although Xoom appeared in the remittance scene in 2001, it has become one of the most sought after money transfer companies within the USA latest after its acquisition by PayPal in 2015.

This is because this remittance service provider allows clients to send money to their loved ones across the world, without having to wait in long queues for banks to process money transfers.

You only need a mobile phone or a computer and internet connectivity, and you will have all access to all remittance services at the comfort of your home.

Here is a ‘how-to’ guide on Xoom that gives an elaborate step-by-step description of what Xoom is all about and how this money transfer company works.

Let's start:

Xoom: Company Description

This international money remittance service provider was founded in 2001 by entrepreneurs Kevin Hartz and Alan Braverman. The two entrepreneurs wanted to venture into the money remittance industry using digital innovations.

They were, however, sure that Western Union, the dominant remittance giant, would be a threat to their vision. This is because most of the investors and potential clients did not believe that it was time to have digital remittance.

In 2015, Xoom Incorporation was acquired by PayPal Incorporation. This offered PayPal a successful ingress to over 1 million active users of Xoom in the USA. This step has led to PayPal leveraging globally in the expansion of money transfer services across different countries in the world.

The company has its headquarters in San Francisco, California in the USA. They also have a working centre in Guatemala.

Xoom’s transfers are made in the form of sending money to you recipients, payment of utility bills such as electricity and gas, and reloading prepaid phones with airtime top-ups.

How Trustworthy are Xoom Remittances?

Xoom money transfer is one of the most secure digital banking platforms in the world. Their systems are secured with 128-bit data encryption, making their banking transactions more reliable.

A firewall secures their servers, and they are not linked with the internet directly. Employees of Xoom, especially those that deal with the systems, undergo a background check on their criminal and financial histories before they get hired. All these security measures are important in ensuring that the Xoom money transfer system is more reliable and trustworthy.

Xoom is a subsidiary of PayPal, which is a reputable online company globally.

You, therefore, have nothing to worry about when it comes to transacting online through Xoom. This international money transfer app will refund its clients in case of losses or if your recipient fails to receive the transferred money due to fraud.

In Which Countries is Xoom Available?

Users of the Xoom app or website can transfer money from the USA and Canada to more than 30 countries across the world. 

Such countries include; Mexico, China, Germany, the Philippines, Uruguay, Netherlands, the UK, Columbia, and Australia. Other countries supported by Xoom in money transfers include India, Italy, Chile, Spain, Pakistan, Jamaica, Poland, and Peru.

Xoom has also expanded into the African continent, in several countries such as South Africa, Ghana, Kenya, Nigeria, Gambia, Ethiopia, and Ivory Coast.

This remittance service provider aims at expanding services to every content globally. It belongs to the circle of the best money transfer apps for African recipients.

Market leader fight: #Xoom challenges #WorldRemit in #Africa!

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How Xoom Money Transfer Works

Xoom transfers are facilitated online through the Xoom app or their website.

You will need to download the Xoom app from any of apps store such as Google Play or Apple App Store.

With the app and internet connection, you can send money across the world through the recipient’s bank account or have the money delivered via cash pickup locations.

How to Open a Xoom Account

Creating a Xoom account is free and the process only takes a few minutes to complete. The procedure is as follows;

• Browse into their website or app and click the ‘Sign-Up’ button on the taskbar.
• Fill in and complete the Sign-up form which is automatically generated once you click on the ‘sign-up’ button. The details given are used for logins.
• A verification link will be sent to your email address.
• Confirm your registration by clicking on the mailed link.

After a successful sign-up, you can use your Xoom login details to access your account at any time.

Xoom Money Transfer Procedure

With a Xoom account, the process of transferring money is simple. The step-to-step process is as follows;

1. Enter your Xoom login details to sign in to your account.

2. Select the destination country where the money is to be transferred. You should take into consideration the financial operations of the destination country before sending money. For example, some countries will perform extra security checks for amounts exceeding certain limits.

3. Enter the amount you intend to transfer. The minimum amount one can send is 1USD, while the various Xoom transfer limits regulate the maximum.

4. Select the method of money receipt. Recipients can receive the transferred money through either bank deposits or via cash pickups.

5. For bank deposits, you should select the recipient bank from the outlined list of major banks that support international transfers. For cash pickups, you should choose the location that best suits you and the physical address of your residence.

6. Enter your recipient’s details. Here you are expected to provide some basic information about your recipients such as names, physical address, email address, name of recipient’s bank, and account number.

7. Select the method of payment. Xoom does not allow the use of cash as a source of funding for transfers. The available options on payment methods include the use of debit cards, credit cards, or via the checking bank account.

8. Provide your details for the selected means of payment. Information provided includes account or card name, security codes, and expiration dates for cards. Cards must strictly be from the USA.

9. Transaction Review and Payment Authorisation. This final step allows you to verify that all the details you have provided are correct. Once you have verified this information, you can authorise the transfer of money by clicking on the ‘authorise payment’ button.

Xoom Rates

Xoom charges transaction fees as well as currency conversion fees to every transaction made.

Here is an outlook of the diverse Xoom rates;

1. Transaction Fee

Several factors contribute to the variance of transaction fee for various transactions. These factors include;

• The amount being transferred
• Destination country
• The method of payment used
• The type of transaction

Generally, transaction fees are lower when transactions are done via your bank. This ranges from free (for new account holders) to around 4.99 USD for every transaction. Transaction fees for transfers done by use of debit or credit cards can range from 24.99 USD for every 1000 USD transferred.

This amount increases as the amount to be transferred increases. However, transfers via banks are slower compared to those done through debit or credit cards.

2. Xoom Exchange Rate

Before money is transferred to the destination country, it must be converted from the US Dollar to the destination currency. For example, if the money is being transferred to South Africa or Kenya, then the US Dollar must be converted into their respective currency, namely South African Rand and Kenya shillings respectively. Exchange rates affect the total cost of international money transfer.

Exchange rates are unpredictable. They vary from time to time, and sometimes they might be confusing to users. Fortunately, this international remittance company provides you with a Xoom exchange rates calculator where you can determine the total amount your recipient will get based on the destination currency.

Xoom Transfer Limit

There are diverse Xoom Transfer Limits that differ with the three different levels offered for customers to choose.

Each level provides different privileges to active clients who adhere to the demands and restrictions of those levels.

1. Level One money transfer

This is the level where all subscribers begin. In this level, clients are not requested to submit any additional document apart from the minimum requirements for money transfers. This level provides a variety of transfer limits as follows;
• 2,999 USD per transfer
• 2,999 USD for every 24 hours
• 6,000 USD for every 30 days
• 9,999 USD for every 180 days

2. Level Two money transfer

This level requires you to present several documents and information for identity verification. Such documents include occupation details, social security number, and the main source of income. The Xoom customer service must first verify all the documents submitted by users, for their accounts to move to the next level.

Users in this level get a higher Xoom transfer limit immediately after their documents have been submitted.Transfer limits for individuals who qualify for this level include;
• 10,000 USD per transaction
• 10,000 USD for every 24 hours
• 15,000 USD for every 30 days
• 25,000 USD for every 180 days

3. Level Three money transfer

For this level, you will be required to submit several details and documents. Documents to be provided would include recent two bank statements, passport copy, and the last two pay stubs. You will also be required to give details such as your relationship with your recipient and why you are sending money to them.

After successfully complying to the rules of this level, the Xoom transfer limit for users in this level is increased.

For clients who qualify for this level, the following are the transfer limits availed to them;
• 10,000 USD per transaction
• 10,000 USD for every 24 hours
• 25,000 USD for every 30 days
• 60,000 USD for every 180 days

Xoom Customer Service

There are times when your transaction will require additional verification. With the live Xoom customer service that runs for 24 hours in all the seven days of a week, you are guaranteed of support whenever you are in need. Representatives are available to respond to you anytime you call the company.

The other good thing about their customer service is that responses are made in your preferred language between Spanish, English, or Filipino. Users can choose a suport agent in their own preferred language for easy communication.

You can also receive emails whenever you initiate the money transfer process. This way, you will be well informed on the progress of the transaction at the comfort of your office or home. Updates on the progress of transactions are forwarded to both you and your recipient for transparency.

Xoom money transfer limits

Xoom Tracking

With the company’s new Xoom Tracking centre, you can now monitor the status of your transactions at any point in the day. This transaction tracking feature includes the following tracking methods;

• Text Updates

When you submit your mobile number during the transactions, you will receive a confirmation message when your recipients receive money.

• Email Updates

You can monitor your transaction by integrating your email address with the company’s tracking centre. You can also opt to submit your recipient’s email address. This way, you and your recipient will be in a position to receive updates on the progress of your transaction.

• Making a Toll-free Call

You can call representatives of this PayPal service whenever you want to confirm your transaction status. Their response is instant and in languages that you can relate with.

• Device Tracking

You can also track your transactions by logging in to your account via your phone, tablet, or your computer. Click on ‘Track Transaction’ on the task bar. You will get access to the status of your most recent remittance transaction.

Pros and Cons of Xoom Money Transfer


• Extremely secure. One of the attributes that make Xoom a reputable remittance company is their secure website and servers. Their systems are secured with 128-bit data encryption and serves detached from a direct internet connection.

• Money-back warranty. In case of loss of money out of fraudulent activities, the company guarantees a refund of your money in full. They also follow up on transactions that never arrived in the recipient’s account, and refunds money after verifying the error.

• Accreditation and Regulation. The international money transfer service provider is by the US state agencies from both federal and state governments. It is also accredited and certified by third-party organizations which monitor their financial activities to ensure quality controls and standards are provided to US citizens.

• Xoom’s Calculator. You can calculate the total amount that your recipient will get after the deduction of currency conversion and transaction costs by use of their calculator.

• Transaction Speed. Customers can send money from the USA to Africa and across the world within seconds by the use of the Xoom App or website.

• Reduced transaction fees. Compared to most money transfer service providers, Xoom has the most affordable transaction fees.


• Tedious validation process. The process of validating transfers through Xoom can be extremely overwhelming. In their efforts to keep their financial transactions safe, the company makes its verification process an unnecessary hassle. A high percentage of individuals who were denied access to Xoom’s services were as a result of a failed validation process.

• Limited access. Xoom app or website can only be accessed online. Individuals who have no access to internet cannot access the provider’s services.

• Not suitable for start-ups. Xoom is only ideal for person-to-person money transfers and not for businesses or start-ups. Efforts to use the services for start-ups will be highly voided.

• Not suitable for poor people. You will need a smartphone or a computer and internet connection in order to use Xoom’s services. You will also need to have an active bank account with a minimum of over 10 USD to make a single transfer. Some of these minimal requirements are not accessible to individuals living along and below the poverty line.

• Not suitable for unbanked people. You must have either a bank account, a credit card, or a debit card to use Xoom. Use of the bank account option as a payment method is considered the cheapest. Unbanked people are likely to pay more for transfers.

Xoom Review and Summary

Transfer services of Xoom are of great value to citizens and immigrants in the United States of America who intend to send money to Africa and other countries across the world.

This PayPal’s subsidiary has made money transfer to African countries an easy endeavour. With strong backing by PayPal, Xoom money transfer service continues to penetrate Africa’s leading economies such as South Africa, Nigeria, Algeria, and Kenya.

The growing money remittance service provider offers cheaper transaction costs, especially when transfers are made via the bank. Xoom reviews suggest that the registration process can be extremely tedious due to the system’s security measures. However, considering the company’s competitiveness in the remittance industry, Xoom makes money transfer from the USA to African countries faster and less expensive.

With its strict security checks, users sending money through Xoom money transfer service can be sure that their money is secure and it will safely be delivered to the recipient.

Users from the USA and Canada who want to send money to African countries can use the Xoom money transfer service for faster, secure and efficient international money transfers.

The process is easy and affordable.

review of the Xoom money transfer app