PayPal combines a widely used digital wallet and checkout service with international personal payments. Xoom, which is part of PayPal, is a separate money-transfer service for bank deposits, cash pickup, wallet delivery, bill payments and mobile reloads in supported countries.
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Reviewed by Klaus Thorup · 16 August 2026 · How we review providers
Is PayPal a good choice?
PayPal is highly convenient when both sides already use it, while Xoom can be a strong option when the recipient needs cash, wallet credit, a bill payment or a mobile reload. Currency conversion is often more expensive than with a specialist, so compare the final amount received before choosing convenience over price.
Best for
- Payments to an existing PayPal contact
- Online purchases and merchant payments
- Xoom routes where cash, a wallet, bill payment or mobile reload is needed
PayPal pricing at a glance
PayPal and Xoom have separate pricing. A PayPal international personal payment can include a transaction fee and an exchange-rate adjustment, while Xoom sets its own fee and exchange rate for each destination, payment method and way of receiving the money.
This is a USD-to-EUR currency-conversion example. Your exact price may differ by country and by how you pay and receive the money.
About PayPal
PayPal began as Confinity in 1998, adopted the PayPal name in 1999, joined eBay in 2002 and became an independent public company again in 2015. Xoom became part of PayPal in 2015.
For 2025, PayPal reported 439 million active accounts and $1.79 trillion in total payment volume. That scale mainly reflects its wider wallet and merchant network, not only international person-to-person transfers.
How PayPal pricing works
For a US personal international payment, PayPal currently lists a fee of 5% of the amount, with a minimum of $0.99 and a maximum of $4.99, before currency conversion. Its US fee page lists a 4% exchange-rate adjustment for payments and personal transfers; charges in other countries differ.
Xoom shows its own fee, exchange rate, recipient amount and expected delivery time before confirmation. Its price should be compared separately from a normal PayPal payment because the available receiving methods and charges are different.
What else you get
A familiar payment network
Many people and online businesses already use PayPal, which can make arranging a wallet or merchant payment straightforward.
Several ways to receive through Xoom
Depending on the country, Xoom can deliver to a bank, card, mobile wallet or cash location and may also support bill payments or mobile reloads.
Useful merchant features
PayPal's checkout tools, transaction history and eligible purchase protections add value beyond international money transfers.
Strengths and trade-offs
Reasons to choose PayPal
- Very convenient when the sender and recipient already use PayPal
- Large merchant and online-payment network
- Xoom offers more recipient choices than a bank-only transfer service
Reasons to compare alternatives
- Currency conversion can include a several-percent exchange-rate adjustment
- PayPal and Xoom use different fees, exchange rates and protections
- An account or payment review can occasionally delay access to money
Support and account checks
Help is provided through PayPal or Xoom according to the product used; a Xoom transaction is handled under Xoom's separate agreement.
PayPal or Xoom may ask for identity, address, tax or business documents and can limit an account or transfer while information is checked.
A cash recipient must meet the local payment partner's identity and name-matching requirements.
When to look elsewhere
Choose Wise or Instarem when a low-cost bank deposit is the priority. Compare Remitly or MoneyGram when the recipient needs cash or another local receiving option, and keep PayPal for merchant or same-currency wallet payments where its convenience is most valuable.
Large investment-related exchange?
For a large currency conversion that is part of genuine investing or trading in the account, compare Interactive Brokers first: its pricing can be difficult to beat. IBKR is a brokerage, not a stand-alone transfer service; use a transfer specialist for cash pickup or a direct payment to someone else.
What to know before you use PayPal
A Xoom transfer is a personal money transfer rather than a purchase and is not covered by PayPal's buyer or seller protection programmes.
The US fee example is not a worldwide price. Select the sender country and payment type before comparing the total.
Use the final amount the recipient receives to compare PayPal or Xoom with another provider, especially when currency conversion is required.
Sources
Reviewed 16 August 2026
- PayPal — History and facts (opens in a new tab)
- PayPal — Full-year 2025 results (opens in a new tab)
- PayPal — US consumer fees, effective 19 May 2026 (opens in a new tab)
- Xoom — User agreement, effective 11 May 2026 (opens in a new tab)
PayPal vs the competition
These guides compare prices and practical product differences, so you can see which provider may suit you best.