5 Xoom Alternatives In Canada

Are you considering settling bills or other international transfers from the comfort of your home or anywhere in Canada? Then you should consider Xoom–especially if you already own an account with PayPal. PayPal is Xoom’s parent company, thus, PayPal is heavily integrated into Xoom. An example of such integration is logging into Xoom for the first time using your PayPal login details or performing international money transfers with your payment methods linked to your PayPal account.

Xoom is a payment company available in over 140 countries and offers a number of transfer options for both sender and receiver. A sender can send funds to a recipient online–credit or debit card, bank transfer, PayPal account, and payment method linked to a PayPal account–or at a physical location (agents). The recipient on the other hand can (1) receive the transferred money directly into their bank account, (2) collect the payment in local cash from an agent near them, (3) cash home delivery service — available in some countries, and (4) airtime top-up — available in some countries.

Before settling for Xoom, compare their fees (a complicated setup) and options with other alternatives.

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Key Features & Fees

- International transfer through pick-up: from 4.99 CAD

- Transfer through bank deposit: from 2.99 CAD

- International transfer exchange rate markup: Up to 4.99%

- Account Levels with Transfer Limits

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If these features or fees do not meet your requirements, consider the other alternatives discussed in this article.

Pesa: Instant and Secure International Money Transfer

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No one should have to pay high fees or unfavourable exchange rates when sending international transfers. This is why looking for the best alternative out there is necessary.

Create a Pesa account for free and you get to send money internationally to over 50 countries - all for free and at the best exchange rate in the market. With Pesa, you see exactly what you want to send before you send and your recipient is guaranteed to get exactly that - No extra cost or surprises.

The Pesa app is great to have on the go. You can hold multiple currencies and seamlessly convert currencies all in one place. So, send and receive money from Canada, Nigeria or the United Kingdom like a local - instant, secure, reliable and fee-free.

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Other Xoom Alternatives in Canada

PayPal

PayPal is one of the oldest and most popular online payment companies in the world. It is available in over 200 countries and territories and has acquired over 200 million active users or customers in the last 25 years. PayPal is a great alternative if you and the receiver both have accounts with them. Otherwise, you (and the receiver) will lose money due to their stacked up charges for international transfers.

Key Features of PayPal

- 200+ countries

- 25 currencies

- Exchange rate: Mid-market +3-4%

- 2.9% fee for domestic transfers (credit card option)

- 5% fees for international transfers

- Inactivity fee: 20 CAD

WorldRemit

WorldRemit is a fintech company based in London that specialises in international money transfers with a huge network of agents in over 130 countries, and you can send money in more than 70 different currencies. WorldRemit lets users send money in two ways. You can either have it deposited directly into the receiver's bank account, or they can pick it up as cash–this option is available in some countries. Interestingly, over 50% of their transfers go to receivers in Africa.

WorldRemit also offers some cool additional features. You can send money to your recipient’s mobile wallet or even top up their phone with airtime. It's worth noting that WorldRemit’s exchange rates might have a markup of about 4%, but they do charge a flat fee of 3.99 CAD for international transfers, which can be handy for budgeting. Plus, they're upfront about all their charges before you confirm the transfer, so there are no hidden surprises.

Key Features & Fees

- Money transfer is not instant.

- A fixed 3.99 CAD transfer fee

- International transfer exchange rate markup: Up to 4.99%

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Send and receive money in Canada with Pesa.

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OFX

OFX is an Australian money transfer service that's been around since 1998 (originally called OzForex). They cater to both individuals (think sending money to family abroad) and small and medium businesses. OFX allow transfers to over 170 countries in more than 50 currencies, and they claim it is free on their end. Sounds too good to be true. Well, there's a catch.  Sometimes, the bank you're transferring through, or another intermediary might charge a fee.  This can be frustrating because you won't know the exact amount upfront, and it could be as high as $35! Also, the exchange rate you see advertised on their website isn’t the final rate you get. It's always best to double-check the rate before you hit confirm.

Key Features & Fees

- Third-party fee is hidden.

- Markup on mid-market rate

- Minimum Transaction of 1,000 USD

Remitly

Remitly offer remittance and foreign exchange services, just like Xoom. Setting up a transfer with Remitly is easy–online or through their mobile app. You choose your preferred payment method (bank transfer, debit card, etc.) and how fast you need the money to arrive. For this, Remitly offers both budget-friendly economy options and faster express deliveries, depending on your urgency. Remitly offers flexibility on how the recipient gets the money you’re sending. You can choose to deposit directly into a mobile money account or bank account, or even have it ready for cash pickup by the recipient.

Pros

• Cash pick-up and delivery option for recipient
• Choose the required delivery speed– economy or express payments
• Available in 145+ countries.

Cons

• Fees depend on the preferred payment method and delivery speed.
• Exchange rates include a markup
• No pay-in option for cash

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Create a PESA account today - and start sending and receiving money globally.

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