While both providers promise instant card transfers, Xoom boasts delivery in minutes even on bank transfers whereas Tranferwise typically takes a day or two. Because processing varies widely depending on the transfer amount, currency, country, and payment method, it’s difficult to pick a clear winner, but Xoom may have the edge. To that end, both TransferWise and Xoom offer relatively fast processing times that vary from minutes to a few business days. In a pinch, processing speed becomes critical. Worth noting too, Xoom has a maximum transfer limit of $50,000, so not only is TransferWise less costly for large transfers, but depending on the transfer amount, it may be the only option. And remember from above, TransferWise lowers their transfer fee on transfers that pass a certain threshold. In this scenario, Tranferwise is the cheaper option no matter how you transfer the money. Total cost of transaction if sending via credit card (including applicable fees) Total cost of transaction if sending via debit card (including exchange rates and applicable fees) Total cost of transaction if sending via bank account(including exchange rates and applicable fees) Let’s take a look at a few examples to see how this actually plays out: USD → EUR Additionally, Transferwise lowers their rates for larger transfers, so for companies who need to transfer say, hundreds of thousands of dollars at once, the savings could be substantial. The fee is calculated as a percentage of the transfer amount, and this varies depending on the currency and payment method. the current exchange rate you’d find on google) without a markup, and instead calculates a fee that it adds to the transfer. Transferwise, on the other hand, is unique in that it offers the mid-market exchange rate (i.e. You’ll also be charged additional fees depending on the transfer amount and payment method. This means your recipient receives less money and Xoom pockets the difference. For example, if the exchange rate from EUR to USD is 0.913, Xoom might offer to process the transfer at a slightly lower rate of 0.902. Xoom, like many, simply adds a mark up to the current market rate. Costĭespite offering a similar service, Xoom and TransferWise charge their customers differently. We’ll take a look at each of these categories to help you determine which money transfer service is better for you. When choosing an international money transfer provider, businesses are often concerned with the following: Fortunately, competitors like Transferwise and Xoom have swooped in with money transfer services that save companies time and money.īoth TransferWise and Xoom (owned by PayPal) offer a similar money transfer service, but there are subtle differences that give each of them an advantage over the other depending on the application. Historically, the international money transfer space was monopolized by banks which imposed high transaction fees and slow processing times on cross-border transactions. A major component of this is to make sure money transfers flow seamlessly–and cheaply–from one country to the next.
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