MoneyGram and Xoom (PayPal's international transfer arm) both promise fast, secure international money transfers. The right answer depends on whether you value cash pickup, app polish, exchange rate, or PayPal-account integration.
This guide walks through the head-to-head differences in fees, speed, country coverage, and account experience as of April 2026.
Quick Verdict
MoneyGram wins on cash-pickup network breadth and time-to-first-send for new users. Xoom wins on PayPal integration, mobile-wallet payouts in major corridors, and a slightly cleaner app for repeat sends.
If you are sending to a recipient who needs cash, pick MoneyGram. If you live inside the PayPal ecosystem and your recipient has a bank account or mobile wallet, Xoom usually feels easier.
Fees on a Real Send
Sending $500 from a US bank account to the Philippines in April 2026:
- MoneyGram: flat fee around $0 to $3, exchange rate roughly 1% to 1.5% under mid-market. Recipient receives ~28,650 PHP at a 57.30 rate.
- Xoom: flat fee around $4.99, exchange rate roughly 0.5% to 1.5% under mid-market. Recipient receives ~28,750 PHP at a 57.50 rate.
The two are usually within 0.5% on most Asia and Latin America corridors. Promotions matter. MoneyGram regularly runs $0 fee on first sends. Xoom often offers $0 fee for new PayPal-funded sends.
Speed
MoneyGram cash pickup typically completes in under 10 minutes after payment. Bank-deposit completes in zero to four hours.
Xoom bank deposits to major corridors (Mexico, India, Philippines, Brazil) often arrive within minutes. Xoom mobile-wallet payouts (GCash in Philippines, BBVA in Mexico) are also near-instant.
For pure speed, MoneyGram leads on cash pickup, while Xoom often leads on bank or mobile-wallet pickup in popular corridors.
Country Coverage
MoneyGram covers 200+ countries with cash pickup at 350,000+ agent locations. Xoom covers 160+ countries but only some allow cash pickup, and its agent network is smaller (around 70,000 locations, often through partnerships).
For obscure destinations, MoneyGram has the deeper bench. For the top 30 corridors that account for most US-outbound sends, both work well.
Funding Options
MoneyGram lets you fund with bank account, debit card, or credit card. Xoom lets you fund with bank account, debit card, credit card, or your PayPal balance.
The PayPal balance funding option is Xoom's signature feature. If you keep money in PayPal from selling on eBay or Etsy or freelancing, you can convert that balance into a Xoom transfer in two taps. MoneyGram has no equivalent.
Limits
MoneyGram new accounts start at $1,000 per transaction; verified accounts go up to $10,000 per transaction and ~$50,000 daily. Xoom typically caps verified accounts at $25,000 every 180 days for first-tier users, rising to $50,000+ for fully verified senders.
For very large sends ($25,000+), MoneyGram is more flexible. For typical $100 to $5,000 sends, both work.
App Experience
Xoom has a slightly more polished app with stronger filtering for past recipients and clean status notifications. The MoneyGram app has caught up significantly in 2025 to 2026 with Plus Rewards, Price Lock, and faster status pings.
Both apps support biometric login, two-factor authentication, and saved recipients.
Customer Support
MoneyGram in-app chat responds in 5 to 12 minutes during business hours, with 24/7 phone support at 1-800-MONEYGRAM. Xoom support is delivered through PayPal's customer service. Phone wait times can run 15 to 45 minutes during peak hours, though chat is usually faster.
If chat speed matters, MoneyGram tends to be more responsive.
Sign-Up Speed
MoneyGram approves new accounts in under five minutes most of the time. Xoom verification can take 1 to 24 hours for the first send, especially if you are funding with PayPal balance you just received from a sale.
If you need to send tonight, MoneyGram usually wins.
When MoneyGram Beats Xoom
- Recipient needs cash pickup at a non-bank location
- You need to fund with a credit card
- The destination country is rare or unbanked
- You want to sign up and send within 10 minutes
When Xoom Beats MoneyGram
- You hold a PayPal balance and want to use it
- The recipient uses a mobile wallet (GCash, GoPayz, Mercado Pago)
- You are sending to a major corridor where Xoom undercuts MoneyGram on price
- You want a slightly more polished app for repeat sends
What Neither Does
Neither MoneyGram nor Xoom helps your credit score. Money transfers do not report to credit bureaus. If you want every monthly bill and on-time payment to count toward your credit file, use a credit-builder product like the Self Visa® Credit Card. It reports to all three major bureaus and has high approval odds for people just starting their credit journey.
For free credit monitoring while you build, Creditship tracks your score and gives concrete next-step advice without charging a subscription fee.
Frequently Asked Questions
Is MoneyGram or Xoom cheaper?
It varies by corridor. On Mexico and Philippines bank deposits, the two are usually within 0.5% of each other. MoneyGram tends to win when running $0-fee first-send promos, while Xoom wins for PayPal-funded transfers since you avoid debit-card processing fees.
Can I send money from PayPal to MoneyGram?
Not directly. You would need to transfer your PayPal balance to a bank account first, then fund a MoneyGram send from that bank. Xoom is the PayPal-native option for cross-border PayPal-funded transfers.
Which is safer, MoneyGram or Xoom?
Both are fully licensed money transmitters with bank-grade encryption, two-factor authentication, and recipient verification. The biggest safety risk is the recipient, not the platform. Never send to someone you have not met in person, and never send a transfer to "claim a prize."
Do MoneyGram or Xoom build credit?
No. Both move money but neither reports to the credit bureaus. To build credit, use a tool that reports payment history to Experian, Equifax, or TransUnion, like a secured credit card, credit-builder loan, or rent-reporting service.
