Xoom vs Venmo: Which one is better for Americans?

Sending money to family overseas is very different from splitting the bill with a friend at dinner. Xoom and Venmo were built to address these needs separately. They’re both popular for money transfers, but each excels in different scenarios.

This guide compares Xoom vs Venmo and their pros and cons, features, fees, and conditions, so you can make an informed decision about which one best fits your needs.

We'll also introduce Wise — your international money transfer alternative. Use Wise to send stress-free transfers to over 140 countries - all at the standard mid-market exchange rate.

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Xoom vs Venmo: General overview

Xoom and Venmo are both part of PayPal, and they’re designed to solve unique money transfer problems.

Xoom focuses on international transfers. Users in the US can send money to more than 160 countries. In 2024, Xoom also added support for PayPal USD (PYUSD), a stablecoin that enables eligible transfers with no transaction fee.¹

For sending money abroad, Xoom works well for most Americans, whether it’s for supporting family or settling bills overseas.

Venmo, in contrast, is made for domestic payments. It lets users send and receive money instantly with friends, split bills, pay rent, and even buy or sell cryptocurrency. It’s accepted at over two million US retailers, basically wherever PayPal is accepted.² The app also comes with a Mastercard debit card for everyday use.

Venmo works best for everyday US payments, whether shopping online, paying at a store, or using its debit card for daily expenses.

Pros & cons

Each service has its strengths and weaknesses. Here’s what they do well, and what their limitations are.

Xoom vs Venmo: Fees

Here’s a rundown comparing Xoom vs Venmo fees.

Note that Xoom has a variable fee structure, so fees vary by the country you send to, the funding method, and payout option.

If fees and exchange rates are your top priority, Wise is worth considering. Wise uses the mid-market exchange rate, and fees are shown upfront. This simplifies overseas payments while helping you avoid hidden costs.

Xoom vs Venmo: Exchange rates

Xoom applies a conversion spread on all cross-currency transfers. The FX markup is estimated to be around 4.49% above the mid-market rate.¹¹ That means the rate you get is less favorable than the true market rate. The cost depends on several factors:

• The type of transaction
• Your payment method and the currency you use
• The amount being sent
• The destination country
• The currency selected for the recipient

Venmo only supports USD transactions, so exchange rates aren’t a factor. All transfers stay in US dollars, meaning there are no currency conversion costs when using Venmo domestically.

Xoom vs Venmo: Supported countries

Xoom lets US users send money to over 160 countries worldwide. Transfers can be sent via bank deposit, cash pickup, mobile wallet, or to pay bills abroad. Availability of certain payout methods, fees, and speed can vary depending on the destination country, and some destinations may have additional restrictions.

For example, when sending money from the US to the Philippines, Xoom supports payout methods like cash pickup, mobile wallet, bank deposit, and even door-to-door delivery.¹² Meanwhile, when sending to Haiti, only mobile wallet and debit card deposits are available.¹³

Venmo is strictly domestic and only works within the US and US territories. You can’t send money internationally using Venmo. What you can do, in this case, is move your money from Venmo to Wise, so you can handle everyday payments and international transfers seamlessly.

Xoom vs Venmo: Transfer times

Transfer times with Xoom vary. Some transfers, like cash pickup or mobile wallet deposits in supported countries, can arrive within minutes. Bank deposits may take several hours to a few days, and options like door-to-door delivery can take up to two business days. First-time or large transfers may take longer due to verification checks.

Xoom also enforces transfer limits, which can affect how much you can send in a single transaction or within a set period.

Venmo transfers within the US are typically instant between Venmo users. Standard transfers to a linked bank account usually take 1–3 business days and are free. For faster access, Venmo also offers Instant Transfers, which are processed within minutes for a fee.

Xoom vs Venmo: Safety & security

Xoom uses 128-bit encryption to protect transfers and account data. It complies with U.S. anti-fraud and anti-money-laundering laws, which is why some transactions may require identity or verification checks.

Overall, Xoom works best when sending money to people you trust, like family or friends. Sending for commercial purposes is prohibited.¹⁴ Users should also double-check recipients and use strong, unique passwords.

Venmo also encrypts all transactions and offers two-factor authentication, PINs, and biometric login for extra security. Payments marked as purchases may be eligible for Purchase Protection, but Venmo balances are not fully FDIC-insured. Users should watch out for scams or fake requests.

Frequently asked questions

Which is cheaper, Xoom or Venmo?

Venmo is more affordable for US local payments, as transfers funded via bank, Venmo balance, or debit card are free. Credit card payments cost 3%.

Xoom fees vary by destination, payment method, and payout option. For international transfers, Xoom can be more expensive due to higher transaction fees and foreign exchange markups compared to alternatives like Wise.

Can I transfer money from Xoom to Venmo?

No. Xoom only supports international transfers, whereas Venmo is primarily used for US domestic payments. You can’t send money directly from Xoom to Venmo.

As a workaround, you can first transfer money from Xoom to your PayPal account, then move the funds from PayPal into your Venmo account.

Can I use both Xoom and Venmo together?

Yes. You can use them together, but you can’t send money directly from one to the other. Venmo works well for everyday US payments, and Xoom is ideal for sending money internationally. Using both allows you to handle domestic and cross-border transactions efficiently.

Final verdict: Which provider is better?

Choosing between Xoom and Venmo ultimately comes down to what you need.

Venmo is fast, mostly free, and secure for peer-to-peer payments and everyday purchases. Xoom is better for sending money abroad, offering access to many countries with multiple payout options, though fees, conversion spreads, and transfer times can vary.

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Sources

1. PayPal - Xoom and PayPal cross-border transfers
2. PayPal - Venmo is accepted by millions of US retailers
3. Xoom - 128-bit data security encryption
4. Consumer Reports - Venmo privacy concerns
5. Investopedia - Venmo FDIC insurance
6. Xoom - Fee calculator
7. Venmo - Fee sending with credit card
8. Xoom - Send money within minutes
9. Venmo - Instant transfer fee
10. Venmo - Withdrawal fees
11. MoneyTransfers - Xoom FX markup
12. Xoom - Transfers from US to PH
13. Xoom - Transfers from US to Haiti
14. Xoom - Prohibited for commercial use

Sources checked 12/16/2025