Is Xoom as Fast as its Name Implies? A Review of Xoom’s Money Transfer Service
Sending Money with Xoom Corporation
I want to tell you about another interesting money sending service that I discovered last year. It’s called Xoom, as in, money zooming all over the world.
Xoom calls themselves an “online-to-offline international money transfer service.” In each country to which they send money they team up with a local partner, which could be a bank, a check cashing outlet, a money changing service, or any similar type of company. You can send money using a U.S. credit card, or pay with your U.S. bank account. You send your money through Xoom’s website, and your recipient picks it up in person at the partner’s location in their country.
I’ve used their service several times to send money to relatives overseas. Xoom is based in San Francisco, California, andt heir fees are very low. To send $500 within the United States, for example, costs only $13.99, but they can send money to many different nations. The recipient does not need a bank account or internet service. Are they better than Moneygram? Maybe. I was quite pleased with Xoom’s money transfer service during the year or so that we used it, but then they inexplicably dropped the country we were sending money to from their list.
This may be Xoom’s biggest liability, that they do not send money to many nations. The privately held Xoom can send funds to only 20 countries, though it will be adding 14 more in the near future. Exactly which countries can you transfer money to with Xoom right now? Here’s the list:
Frankly, this list struck me as a little odd. Why enable money transfers to Nepal, but not to China? Still, if you are sending money to a popular destination like Mexico, India or the Philippines, you should give Xoom a try. In fact, Xoom has recently set up a global remittance service specifically for immigrants from these countries who wish to send money back home.
Xoom’s Global Remittance Service
In 2006 Xoom Corp. began offering a remittance service for people to send money overseas to relatives. Some of the largest U.S. banks, such as Wells Fargo and Bank of America, are already heavily invested in the remittance business. Xoom’s latest move is predicated on the belief that smaller banks, such as regional and community banks that do not have the finances or technology to build their own global remittance service, will be eager to get into the remittance market and will sign on to Xoom’s platform to do it.
Xoom’s remittance service is called Xoom WebAgent, and Xoom is confident that it will appeal to banks that have large immigrant constituencies.
Xoom is entering a field already occupied by major players, such as Western Union and MoneyGram International, and other companies that offer so-called “white-label” remittance services. Xoom will have a ways to go to catch up to the giants of the remittance industry: Western Union can send money to about 200 countries, and MoneyGram reaches more than 170.