How Does Xoom Work and How Long Do Transfers Take?

Xoom is a global money remittance services. Xoom is designed to appeal to people seeking fast, secure, and low-cost international money transfer.

Ruchi Gupta - Author

Dec. 16 2020, Published 3:03 p.m. ET

Xoom is a global money remittance service. The company appeals to people who want to send money without having to wait in line or fill out paperwork like with traditional money transfer services. How does Xoom work and is it right for you? 

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You can send money with Xoom from your computer or mobile device. Xoom markets itself as a fast and low-cost international money transfer service. You can send money with Xoom to more than 160 countries. Recently, the company started sending money directly to mobile wallets in countries in Africa. 

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Currently, the service is available in the U.S., Canada, and the U.K. Money can be sent to 13 countries. Xoom users in the U.S. can send up to $50,000 in a day, but not more than $60,000 in a month or $100,000 in six months.

How does Xoom work?

To send money with Xoom, you need to connect a funding source — a bank account, credit card, or debit card. You can also send money with Xoom from your PayPal balance. 

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When sending money with Xoom, you need to provide information like the recipient’s name, address, and phone number. If you are making a deposit to a bank, you need the recipient’s bank name and account number. Besides sending money, Xoom also lets you reload phones and pay bills for other people as long as you have the necessary information.

How long do Xoom money transfers take to process?

Most Xoom money transfers get to the recipient in minutes. However, some transactions can take days to process. Factors that impact the Xoom transfer time include the country you’re sending the money to, the source of funds, and the payout method, which can be cash pickup, bank deposit, home delivery, or mobile wallet.

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As for the funding source, bank transfers can take up to three days to reach Xoom. The service only starts processing your transfer request after receiving the funds from the bank. You can avoid Xoom transfer delays by loading funds into the account and preparing information and documents that might be required in advance.

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Why is Xoom asking for my social security number?

Xoom offers an international money transfer service at three levels. Each level has a limit on the amount you can send and the documents required. If you are sending $2,999–$9,999, Xoom will only require your profile information. If you are sending $10,000–$30,000 from the U.S., Xoom will require your social security number or passport. 

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If you are sending $50,000–$100,000, Xoom will require more documents like a driver’s license and bank statement. Also, you will have to answer security questions by email.

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What happened to Xoom?

Technology doesn’t work perfectly all the time. Occasionally, Xoom experiences technical challenges that may take down some services. At times, Xoom users may face problems trying to log into their accounts or access the Send money function.

Technical breakdowns may also make Xoom’s customer support center inaccessible over the phone. However, when Xoom’s phone lines are down, it continues to provide customer support by email and other channels as it works to restore the phone lines.

Is Xoom owned by PayPal?

Xoom’s surging popularity has left many people wondering who owns the service. PayPal acquired Xoom in 2015 in a cash transaction valued at $890 million. Before selling to PayPal, Xoom was a publicly-traded company listed on Nasdaq under the ticker symbol “XOOM.” PayPal acquired Xoom as it prepared to split from its parent eBay and go public. 


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