Have you ever heard of a digital wallet that allows you to deposit money to a bank account, send cash for pickup and even have cash delivered. Well, here it is. A paypal service called Xoom which makes your money transfers even safer with no more waiting in lines or even filling out paperwork.
So now, let's have a look at what Xoom is and why it is so popular for sending money locally and even abroad to different countries.
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What is Xoom?
Xoom is a PayPal service (also owns Venmo) created to transfer money online, pay bills etc all out of harm’s way. Headquartered in San Francisco, this service was founded on 1st March 2001 by Kevin Hartz. This Paypal services’ current CEO is John Kunze who has been active from 2006. This digital money transfer provider had been launched with the intention to send money around the world fast and securely. This means that a british who lives in the U.S can easily send money to his friends or family back in the U.K. Not only in the U.S or U.K, Xoom can be used in most of the countries. In early December 2020, Xoom enabled its US, Canada, the UK, and Europe customers to transfer money directly to mobile wallets in 12 countries in Africa.
People across the globe can use this wallet and it’s features in over 130 countries across the world.
In 2020, this service expanded to provide transfer of money to mobile wallets in Rwanda, Cameroon, Ghana, Kenya, Madagascar, Malawi, Mozambique, Burundi, Tanzania, Uganda, Zambia, and Zimbabwe. Xoom also has plans for a rollout to include more countries in the year 2021.
Back in the 2002’s, PayPal’s parent organisation was eBay. This means that PayPal was acquired by eBay and 70+% of eBay auctions accepted PayPal payments. PayPal was acquired on October 3 2002 for 1.5 million dollars. In 2015 July, eBay and PayPal decided to split into two different companies. PayPal, the long time eBay partner, will slowly fade out as the primary payment processor of eBay. Early steps will be made in 2018 but the full rollout won’t complete until July 2023. Later, after the split, PayPal announced that it was going to acquire Xoom. In November 2015, This San Francisco-based transfer service (Xoom) was acquired by PayPal. PayPal spent about $890 million which was £25 dollars per share.
The reason why PayPal bought Xoom is because it was said to the next gen digital money transfer service back in the years. Connecting with Xoom, PayPal could reach a lot of people and also help people with no bank accounts to easily send money.
Pros and Cons of Xoom
- Track transactions anywhere, anytime
- Quickly and safely send money abroad
- Personal customer service
- Top up phones and pay utility bills in just a tap
- Difficult verification process
- Requires government issued ID to send higher amounts
Does it cost to send with Xoom?
When you send money or pay bills, Xoom may charge a fee but this fee differs in different countries. When you perform a currency exchange in your transaction, a fee will be applied. For example if you want to send money to the United Kingdom from USD, Xoom’s exchange rate will be applied as the USD gets converted to GBP. If your sending amount will be 1000 USD, then the receiving amount will be calculated as 710.70 GBP. Certain amounts of fees will be calculated. As a receiving option, you can either choose bank deposit or cash pickup. For the transaction mentioned above:
Bank Deposit Fee:
- Fee for paying with your PayPal balance will be $0
- Fee for paying with your bank account will be $0
- A fee for paying with your Debit card will be $30.49
- Fee for paying with your Credit card will be $30.49
Bank deposits arrive typically within 2 hours and are available in all major banks such as Barclays and HSBC.
Cash Pickup Fee:
- Fee for paying with your PayPal balance will be $10
- A fee for paying with your bank account will be $10
- Fee for paying with your Debit card will be $10
- Fee for paying with your Credit card will be $10
Cash pickup transfers arrive typically within a few minutes and are available in locations throughout the UK.