Xoom Canada Money Transfer: Fees, Rates and How To

Sending money internationally can feel complicated, especially with so many options out there. Xoom, a PayPal service, offers a quick way to send money from Canada to many countries worldwide. But how much does it really cost, and how do their fees and exchange rates compare?

We're breaking down everything you need to know about using Xoom and how it compares to Wise—a popular alternative known for convenient international money transfer services at the mid-market exchange rate.

What Is Xoom and How Does It Operate in Canada?

Xoom, a digital money transfer service owned by PayPal, is an online money transfer service that lets you send funds internationally quickly and securely. In Canada, Xoom allows users to send Canadian dollars to over 160 countries¹, providing various sending methods options, including bank deposits, cash pickups, and home delivery.

While it provides convenience and speed, Xoom charges fees and applies a currency exchange markup, which can impact the total cost of your transfer.

Xoom Transfer Limits for Canadian Users

Xoom sets different transfer limits depending on your account verification level. These limits control how much money you can send daily, monthly, and over six months.

Xoom Sending Limits by Account Level²

To upgrade your account and increase your sending limits, you’ll need to provide additional identification documents and proof of address. Limits also depend on your residency status in Canada.

Understanding Xoom's Fees and Exchange Rates

If you're sending money internationally with Xoom from Canada, it's important to be aware of the costs involved—like transaction fees and exchange rate markups.

Transaction fees

Xoom's transaction fees³ vary based on several factors:

• Payment method: Using a bank account or PayPal balance typically incurs lower fees, while credit or debit card payments may attract higher charges.
• Delivery method: Sending funds for bank deposit might have different fees compared to cash pickup or home delivery.
• Destination country and currency: Fees can differ depending on where you're sending the money and in what currency.

These fees can change based on the amount sent and the specific countries involved. However, Xoom does provide a fee calculator on its website so users can see the exact fees for their transactions before making a payment.

Exchange rates

In addition to transaction fees, Xoom applies a markup to the exchange rate. This means the rate you receive is slightly less favourable than the mid-market rate, which is the rate banks use to trade currencies among themselves. The exact markup isn't specified, but it's included in the exchange rate provided during the transaction process.

For example, if the mid-market rate for CAD to EUR is 1.00, Xoom might offer a rate of 0.97, with the 0.03 difference representing their markup.

This would mean that for every 1000 CAD transferred via Xoom, you might pay 30 CAD to cover the markup.

To ensure transparency, Xoom displays the exchange rate and the total amount the recipient will receive before you confirm the transaction.

How to Send Money with Xoom from Canada - Step by Step

On the Xoom app⁴

1. Log in to your Xoom account and tap Send Money.
2. Select the destination country.
3. Choose the delivery method – options vary by country (bank deposit, mobile wallet, cash pickup, or delivery).
4. Enter your recipient’s bank account, mobile wallet, or choose a pickup location.
5. Add your contact’s personal details.
6. If it’s your first time, complete your sender profile.
7. Choose your payment method (bank account, PayPal, or card).
8. Carefully review all details.
9. Slide to Send

On a web browser⁴

1. Go to My Account and click Send Money.
2. Choose the destination country.
3. Pick the delivery method.
4. Enter recipient’s bank/mobile details, or select a cash pickup location.
5. Provide their personal information.
6. Complete your profile, if it’s your first time.
7. Select your payment option.
8. Review everything for accuracy.
9. Click Send to confirm the transfer.

For cash pickup, your recipient will need to show:

• A valid photo ID
• The transaction number
• Ensure all recipient details match exactly, or the pickup may be declined.

Commonly asked questions about Xoom Transfers

Q: What is the maximum amount I can send through Xoom?

A: Xoom’s transfer limits depend on your account verification level. For Canadian users, you can send up to 999 CAD per day at the basic level, with limits increasing up to 75,000 CAD daily (and more over 30 and 180 days) as you provide additional documents like government-issued ID, proof of address, and income verification. Higher limits are available once your account is fully verified.

Q: How long does a Xoom transfer take?

Most Xoom transfers are delivered in minutes, especially if you’re wiring money to a bank account. However, some bank transfers or home deliveries can take a few days⁵. Delivery times depend on the destination country, how you pay, and how your recipient receives the money. You can track the transfer online or via email and text updates.

Q: Are there any hidden fees with Xoom?

Xoom charges a clear transaction fee, but it also adds a markup to the exchange rate, which can make your transfer more expensive. While the transfer fee may look low, the amount your recipient gets might be less than expected due to this rate difference. Always compare providers to see the actual cost, including both fees and exchange rates.

Comparing Xoom with Wise for International Transfers

While Xoom and Wise offer international money transfer services, some key differences exist in how they price, process, and deliver your payments.

Xoom is owned by PayPal and focuses on fast transfers with multiple delivery options, while Wise focuses on transparent pricing and offers the real exchange rate and multi-currency account that lets you hold 40+ currencies.

Xoom vs Wise: Feature Comparison

Final thoughts

If you’re looking for fast transfers with flexible delivery options like cash pickup or home delivery, Xoom can be a great option, especially if your recipient doesn’t have a bank account. It’s also convenient if you already have a PayPal account and want an integrated option.

However, Xoom might not be the best fit if you want the convenience of a multi-currency account or the mid market exchange rate. With its marked-up currency conversion and variable pricing, costs can add if you frequently need to make high-value transfers.

Looking for an alternative? Wise might be a better fit if you want a multi-currency account that lets you hold, convert, and spend in 40+ currencies around the world. With a focus on transparency, Wise uses the real mid-market exchange rate with no hidden markups and has a high 1.5 million CAD transfer limit..

In the end, the right choice comes down to what you need, whether it's just a one-time transfer or managing money in different currencies.

Sources:

1. Send Money Internationally | Transfer Money Abroad | PayPal US
2. How much money can I send, and how can I raise my sending limits? - Xoom
3. What are the fees to use Xoom? - Xoom
4. How can I send money?- Xoom
5. When will my money get there? - Xoom
6. Wise Fees & Pricing: Only Pay for What You Use
7. Guide to CAD transfers | Wise Help Centre