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Xoom vs Western Union: Which Transfer Service Is Faster & Cheaper? (2025 Comparison)

By Adam.h • 7/8/2025

Xoom vs Western Union: Which Transfer Service Is Faster & Cheaper? (2025 Comparison)

When sending money abroad, choosing the right provider can save you time and money. Xoom (a PayPal service) and Western Union are two of the most popular options for international money transfers. But which one is faster, cheaper, and more reliable in 2025? This in-depth guide compares Xoom and Western Union on fees, speed, coverage, and more—so you can make the best choice for your next transfer.

Table of Contents

Overview: Xoom vs Western Union

Xoom is a digital-first money transfer service owned by PayPal, known for fast online transfers to bank accounts, cash pickup, and mobile wallets in 160+ countries. Western Union is the world's largest remittance provider, with 500,000+ agent locations and a strong presence in both digital and cash transfers.

| Feature | Xoom | Western Union | |----------------|-----------------------------|------------------------------| | Founded | 2001 (acquired by PayPal) | 1851 | | Countries | 160+ | 200+ | | Cash Pickup | Yes | Yes | | Bank Transfer | Yes | Yes | | Mobile Wallet | Yes (select countries) | Yes (select countries) | | In-Person | No | Yes (agent locations) | | App/Online | Yes | Yes |

Fee Comparison

How Do Xoom and Western Union Set Fees?

  • Xoom: Charges a transfer fee (varies by country, amount, and payment method) + exchange rate markup
  • Western Union: Charges a transfer fee (varies by country, amount, payout method) + exchange rate markup

Example Fee Table (Sending $500 from US)

| Destination | Xoom Fee | WU Fee | Xoom Rate | WU Rate | Amount Received (Xoom) | Amount Received (WU) | |---------------|----------|--------|-----------|---------|-----------------------|----------------------| | Philippines | $4.99 | $5.00 | 1 USD = 56.2 PHP | 1 USD = 55.8 PHP | ₱28,100 | ₱27,900 | | Mexico | $3.99 | $4.00 | 1 USD = 17.1 MXN | 1 USD = 16.9 MXN | $8,550 | $8,450 | | India | $2.99 | $3.50 | 1 USD = 83.0 INR | 1 USD = 82.5 INR | ₹41,500 | ₹41,250 |

Rates and fees are examples. Use our calculators for real-time numbers.

Transfer Speed

  • Xoom: Bank transfers and cash pickups are often instant or same-day; some corridors may take 1–2 days
  • Western Union: Cash pickup is usually instant; bank transfers can be instant or take 1–3 days depending on country and bank

Coverage & Payout Options

  • Xoom: Strong for digital transfers, cash pickup, and mobile wallets in Asia, Latin America, Africa
  • Western Union: Unmatched global reach, especially for cash pickup in rural or remote areas
  • Both: Support sending from the US, Canada, UK, and many other countries

Real-World Example: Sending $500 to the Philippines

Let's compare a $500 transfer from the US to the Philippines:

  • Xoom:
    • Fee: $4.99
    • Exchange rate: 1 USD = 56.2 PHP
    • Amount received: ₱28,100 (bank deposit, cash pickup, or mobile wallet)
    • Speed: Instant to a few hours
  • Western Union:
    • Fee: $5.00
    • Exchange rate: 1 USD = 55.8 PHP
    • Amount received: ₱27,900 (cash pickup or bank deposit)
    • Speed: Instant for cash pickup, 1–2 days for bank deposit

Result: Xoom is slightly cheaper and faster for this corridor, but always check real-time rates.

How to Use the Fee Calculators

Pros & Cons

Xoom

  • Pros: Fast digital transfers, easy PayPal integration, good for bank/mobile/cash
  • Cons: Not available for in-person cash sending, exchange rate markup

Western Union

  • Pros: Largest global network, instant cash pickup, in-person and online options
  • Cons: Higher fees for some corridors, exchange rate markup, agent locations may have different rates

FAQ

Which is faster: Xoom or Western Union?

Both can be instant for cash pickup, but Xoom is often faster for digital bank transfers. Always check the estimated delivery time for your corridor.

Which is cheaper for international transfers?

It depends on the country, amount, and payout method. Use the fee calculators to compare real-time costs for your transfer.

Is my money safe with Xoom and Western Union?

Yes, both are regulated, licensed, and use secure technology. Always use official apps or websites.

Can I send money in person with Xoom?

No, Xoom is digital-only. For in-person cash sending, use Western Union agent locations.

Do both services support mobile wallet payouts?

Yes, in select countries. Check the payout options for your destination.

References & Further Reading

Compare your transfer: Xoom Fee Calculator | Western Union Fee Calculator

XoomWestern UnionMoney TransferComparisonFees2025
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