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Why Xoom Ended The Use of PayPal as a Payment for Money Transfers

Since we made our announcement yesterday regarding our decision to discontinue the use of PayPal as a payment source, we’ve had lots of questions.

We understand that many of you prefer to pay for your money transfers using PayPal and have had excellent experiences. We are very sorry our decision will inconvenience you. However, we believe this is the best overall decision for us to make on behalf of all our customers. We’d like to take this opportunity to answer many of your questions.

The Xoom Core Business: Money Remittances for Friends and Family

At Xoom, our core business is money transfer for friends and family remittances. PayPal funded transactions are mostly for commercial payments which is not the core Xoom business. Since commercial payments are not our focus, we cannot effectively vet the merchants asking for payments through Xoom.

Why Did Xoom Do This?

First, our customers had too many bad experiences with unprofessional or, in some cases, fraudulent merchants. We’ve decided to stop supporting PayPal to protect the interests of these customers.

Second, if you want to buy commercial goods or services with PayPal, it is probably best to use a service that is directly supported by PayPal as PayPal is very effective at controlling merchant quality.

Third, PayPal funded transactions represent a small percentage of our overall business. Removing support for PayPal will help us focus on our core business even more than before. We expect this decision will keep us very focused on constantly improving the family remittance service.

Lastly, in order to take advantage of new PayPal processing features, Xoom would be required to integrate to a new PayPal platform. Given the size of our PayPal business and given that commercial business is not our focus; we have decided not to spend resources on a new integration as it would compromise our focus on the family remittance business.

Using Other Payment Sources for Your Xoom Money Transfer

Please remember, if you are sending money to friends or family with PayPal through Xoom, you can continue to use Xoom by linking your Xoom account to your United States bank account, or a credit or debit card.

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  1. Fabri Ferrero
    Mar 23 2010


    So, if link Xoom to my USA bank account I would be still able to send the money to Argentina to my sister, right?

  2. Xoom Global Money Transfer
    Mar 23 2010

    >Yes you will still be able to send money to Argentina.

  3. Fabri Ferrero
    Mar 23 2010

    >Thank you very much for the reply.

    Anyways, I'm from Argentina and when I'm trying to link with my Wachovia USA bank account the error "Debes ser residente de los EE.UU. para poder agregar una cuenta bancaria de los EE.UU." shows up.

    So, the mayority if the people will remain with this problem.

    What to do now?

  4. Xoom Global Money Transfer
    Mar 24 2010


    Please visit our online help center at and send us your question using the email form. Please place "BLOGHELP" in the subject line and we will expedite your case.

  5. Fur
    Mar 25 2010

    >In other words you will also no longer accept transfers from countries other than the USA.
    Isn't that a bit short sighted and bad business?
    What do those people outside the USA do instead?

  6. Xoom Customer Service
    Mar 25 2010

    >Hello Fur,

    You may still send using a non US credit card to any of the other countries we service. The Philippines is the only country that a US based payment source is required.

    Thank You,
    Matthew N.
    Xoom Customer Service.

  7. Dave S
    Mar 29 2010

    >Why is the Philippines treated differently? I've been using Xoom to send money to my wife's family there for over four years and now will no longer be able to do so.


  8. Xoom Customer Service
    Mar 29 2010

    >Hello Dave,

    Thank you for your questions and comments. Many people are asking why we no longer accept non-US funding for transactions to the Philippines. Xoom is in the remittance business with a focus on friends and family money transfers. Xoom is not in the commercial business where money is sent for goods or services. As such, Xoom cannot certify the quality of merchants. Unfortunately, some (not all) commercial merchants are unprofessional or even fraudulent. Our customers who send money to poor quality or fraudulent merchants have a very bad experience. The best way for Xoom to protect these customers is to simply stop the business. If you want a commercial service, it is best to use a service that focuses on commercial and has a process for certifying merchants. PayPal, for example, is in this business and is very effective at managing merchant quality. We realize this decision will impact our customer base and we apologize for the inconvenience we have caused.

    Thank you,

    Matthew N.
    Xoom Customer Service

  9. gvdsa
    Mar 29 2010

    > XOOm.Yo soy un comerciante de antiguedades de Argentina que cobraba sus ventas a través de Paypal,con ello como Uds.mismos dicen el control de la operación lo hacía PayPal.Uds no tenían que ver con la transacción comercial,como así también había a veces algún dinero enviado para hacer algún favor a algún amigo.Todo esto sumaba un saldo en PayPal,que para cobrarlo en Argentina había 2 maneras:Tener una cuenta en EEUU o pedir un cheque,que si no se "perdía",podía llegar a cobrarse en 30 a 45 días.La aparición de Xoom nos permitió poder cobrar ese saldo (Del cual Xoom, no tenía nada que ver…),a través del Banco Francés, en cuestión de minutos.Sin tener una cuenta en EEUU o esperar con suerte que llegara el cheque de 30 a 45 días.Lamentablemente, esto también se discontinuó,según me informaron a través de un ticket y también en atención telefónica de Paypal.Repito,operaciones comerciales sin intervención de Xoom,solamente era el vehículo para poder hacerse del dinero en la cuenta de Paypal…No entiendo todavía porqué eliminaron esa opción.Les dejaba un buen dinero de comisión además…Gracias por su atención y si yo estuviera equivocado y todavía pudieramos contar con sus servicios para retirar dinero desde Paypal les agradecería mucho me contesten.Saludos.Gustavo Sierra

  10. parry
    Mar 30 2010

    >oh!! and here i was waiting to accumulate my money in paypal so that i could transfer it to my indian bank account.Looks like i will just discontinue the use of Xoom and will look elsewhere

  11. A
    Mar 30 2010

    >i use xoom to send money to friends in phillipeans i am in the uk so you lost another client bad idea i will be telling evryone i know not to use xoom talk about shooting ones self in the foot good shot ! mr carroll uk

  12. Michell
    Mar 30 2010

    >I read the news that you no longer accept paypal and I am so sad because most us are using paypal to send money to our families.

  13. Xoom en Español
    Mar 30 2010

    >Hello Gustavo.

    En verdad sentimos mucho que hayamos afectado a tantos hermanos en Argentina y otras partes de Latinoamerica. Lo que me gustaria que se dieran cuenta es que con PayPal nos estaba afectando bastante y en lugar de darnos la oportunidad de crecer como compania solo nos estaba dando problemas. Yo se que ustedes solo ven la parte donde estan siendo afectados, pero quien ve lo que en realidad pasa con Xoom? Hay tantas cosas que nadie sabe y del por que esta medida.

    En verdad lo siento pero esta decision es solo para mejorar como compania.

    Si tienes mas preguntas o comentarios por favor avisame

    Vladimir Moreno
    Xoom Customer Service

  14. Maria Lourdes
    Apr 1 2010

    >I am living now in Norway and can't anymore send money to the Philippines via Xoom using my bank and credits cards issued locally. I think it is a very backward move Xoom has done.

  15. Cloakify
    Apr 1 2010

    >lo que tendrian que haber hecho es un filtro de la gente que trbajo siempre con paypal y nunca les dio un problema, en mi caso yo llevo con ustedes haciendo operaciones creo que ya mas de 2 años y nunca tubieron problemas conmigo o con mi cuenta de paypal, asi como yo tiene que haber muchos otros usuarios que tienen que haber actuado de buena maneras, en fin tendre que pedir el cheque a paypal y cobrarlo dentro de 20 dias con suerte, es una lastima ya no me sirva mas

  16. allthings
    Apr 4 2010

    >I cannot understand the link between poor merchants and Philippines. Now even if you know the person, non-USA cannot send money. But wait, it is OK if I am in USA, so it is non-USA citizens who are being discriminated against.

    Long-winded reasons about poor quality merchants is a typical PayPal ploy to cloud the response, when no response is in fact given.

    Poor service and a totally unsatisfactory explanation so far.

  17. Puppet Master
    Apr 6 2010

    >This is such an incredibly short-sighted move. The bottom line is Xoom can't be bothered to expend the development effort upgrading their website to be compatible with the new PayPal platform. However, the wishy-washy excuse that only commercial merchants use PayPal is truly laughable – another case of anyone outside of the US not really counting. Pretty ironic considering the nature of Xoom's business!

    The post says: "United States bank account, or a credit or debit card". Option 1: won't ever have that. 2: cash advance fee. 3: Excessive exchange rate/commission

    One hopes that Xoom will see the error and return the PayPal service once people are forced to look elsewhere to continue their PERSONAL money transfers.

  18. Nin
    Apr 6 2010

    >What is going to happend to the USER that dont live in the states? Paypal was the only way to get my money know what people like me going to do?

  19. rodrigo
    Apr 13 2010

    >Who am I to disagree of the owners of a company, I just want let my opinion because I was a customers since 2004: If xoom is a money transfer service it's not resposible of xoom if someone send money to a fradulent seller, as a money transfer service xoom should not be responsible for it and the person who sent a money for someone he don't know and that had no references should be ignored or banned if complain for xoom. Because few ignorants who send money for fraudlent sellers everybody must pay the price? I'm not USA and will never set my foot in USA and can't use xoom anymore because some people are idiot and send money for criminals.

  20. Xoom Customer Service
    Apr 13 2010

    >Hello Rodrigo,

    Thank you for your comment. Although what you say makes sense it is not exactly the case. Xoom firmly adheres to the very strict laws and regulations set forth by the individual states that make up the U.S. as well as all associated U.S. federal agencies that govern international money remittances. Thus Xoom is responsible for all transactions it sends on behalf of our customers. Therefore we must take any steps necessary to comply with these standards. We do this not only for our security but for the security of our customers as well. We do realize that these decisions do affect some very loyal customers and for that we apologize.

    Thank you
    Matthew N
    Xoom Customer Service

  21. Hasif Ahmed
    Apr 15 2010

    >Your apology is not enough for the loyal customers you had for very long time, like I was one. Considering your loyal customers, you could have arranged primary research which includes survey to find out that how many percent use Paypal as source and how many percent use Card/Bank to send money. Once the result is out, you would find that more than 50% of your customers use Xoom with Paypal.

    Until the now Xoom has been growing day by day by whom? By all these loyal customers of yours. And now as you had changed your services, your growth rate will obviously decrease in very high rate which you can see already.

    Agreeing the fact that the Xoom is for personal use only and not for commercial and some people are using for commercial usage and ending up fraud charge etc. But comparing to those some commercial customers to the bunch of personal customers is nothing. You just cannot take the service away from your all other valuable customers who grown you up just because of some frauds, commercial users etc. This sounds more like that the mother & father scolded their son badly and the son just left the parents for it without caring about their feelings until he grown up.

    We must respect your decision and in no way we can force you to start accepting Paypal but we can of course write our feedback about your decision. Sometimes in business, you just shouldn't think everything professionally, even in textbooks it said think wisely before you take any major steps. Thinking about your customers is the first priority for any business to stay on the market. If you take certain step and loose huge numbers of customer then it's better you don't take it because that's not what is called business.

    I wish good luck with the business growth of Xoom.


  22. Xoom Customer Service
    Apr 16 2010

    >Hello Ahmed,

    I Thank you for your feedback and it is well received. I do apologize for the inconvenience to you but please know that you may still use a credit card or bank account to fund transactions. Thanks again for your understanding.

    Thank you
    Matthew N
    Xoom Customer Service

  23. melly
    Apr 17 2010

    >Hi Xoom Customer Service
    I find it hard to believe that because a limited number of customers have used your service to send money to merchants means that you have stopped allowing anyone from outside the US from sending money to the Philippines using Xoom.
    I have been a UK customer of yours for over 4 years using it to send money to my Girl Friend there and the money I have paid to Xoom just in commission over that time must have come to thousands.
    You have stopped paypal and for payments and for the Philippines you have also stopped anybody with a US Credit or Debit Card.
    And left NO option for anybody that is not from the US whatsoever!
    Stop me if I’m wrong but wasn’t it the Philippines remittance that started your online business in the first place?
    By stopping anybody from outside the US from using the service to the Philippines it seems you saying that nobody outside the US can be trusted.
    It seems to me that it would be people in the US that would be most likely to try using the service for paying merchants for goods.
    And this all seems like a very backwards move for a money remittance website.
    Well after 4 years of use looks like I’m forced to have to start using Western Union or hopefully another service if I can find one.
    To me it all sounds like there is another underlying reason why you have done this.
    Because stopping half or more of your customers from using your service does not seem to make any sense at all as far as I can see.
    I really do hope the management of Xoom re-think this.
    Kind Regards
    Matthew James
    EX-Xoom customer

  24. rodrigo
    Apr 20 2010

    >I'm just thinking here, just because xoom stopped work with PayPal the people will stop to use xoom for commercial purposes? Who have money to send for persons he never seen on life, for sure have a credit card, don't you all understand that who can spend money buying things from another countries have also a credit card and will not stop to do it just because paypal is not a option anymore? The frauds will continue and people will continue accepting xoom for commercial orders.

  25. Xoom Customer Service
    Apr 20 2010


    Thank you for the comments.

    Matthew N
    Xoom Customer Service

  26. jonna
    Apr 21 2010

    >I'm really sad. I have been a customer since 2003 but recently I am not able to use xoom because it doesn't accept paypal anymore.

    Well it's Xoom's decision and I can't do anything about that.

    I hope this move will not hurt Xoom as a business. Let's see..

    I'm hoping to read the news in the future that says: "Xoom Is Now Accepting Paypal!"

  27. Xoom Customer Service
    Apr 22 2010


    Thank you for your understanding and we thank you for your business.

    Matthew N
    Xoom Customer Service

  28. aeht
    Apr 28 2010

    >Hi Xoom Customer Service,

    I'm working here in the Phils. for a home based job and my employer pays me through xoom money transfer. It's just that recently, they informed me that xoom doesnt allow non-US account anymore so instead they send my salary thru paypal. But now, I'm having problems since I can't withdraw any amount from Paypal. I heard Paypal has done a lot of changes with their system recently (perhaps because of the adjustments xoom did that affected them); Now paypal is holding my money; and i've heard a lot of people who are experiencing the same.

    I just wonder what's really the big difference between a personal or commercial remittance? and in what way the commercial are causing harm to your business?; since xoom still earn from them whether its for a personal or commercial money transfer… it's just disappointing to know that xoom is already not available here; i usually receive money without any hassles from xoom; and now, I can't even get my own money because of this..:(

  29. Xoom Customer Service
    Apr 30 2010

    >Hi aeht,

    Thank you for your comments. Yes it is true that we no longer accept PayPal as a funding source for transactions as well as non U.S. transactions to the Philippines. Furthermore, we no longer accept commercial transactions of any kind.

    Regarding PayPal, as was stated in the post, it actually accounts for a very small percentage of our business. The majority of people using PayPal to fund Xoom transactions are much like yourself, involved in some kind commercial venture. Those factors combined with the fact that our system is no longer compatible with PayPal's system required that we make a change and thus we do not accept PayPal payments.

    As to your question about commercial vs. personal payments there is in fact a big difference. Personal payments are between two individuals who know each other on some personal basis and the funds are sent without expectations on behalf of the sender. For example, a mother in the Philippines receives money from her son who works in the U.S. A commercial payment is between two parties who have no other interaction beyond the transaction and the sender is expecting an item or service in return. The issue with that scenario is that if the recipient does not provide the product or service as agreed Xoom would become involved in the dispute which can cost Xoom time, money and resources. Situations like that require some form of "buyer protection" such as eBay offers, and which Xoom does not. The commercial remittance business is a completely different form of business. eBay and PayPal are two examples of businesses whose primary function is to provide for commercial transactions, and they perform that function very well. Another example of why Xoom is not to be looked to for commercial transactions is that even eBay does not allow it's customers to use services such as Xoom to pay for items for the very reasons I described above.

    I hope that I was able to answer your questions and we apologize for any inconvenience, however we do wish you the best.

    Thank you
    Matthew N
    Xoom Customer Service

  30. futuredude
    May 12 2010

    >I use Xoom quite heavily and this decision won't affect my brand loyalty, or any of my numerous friends who also use this service. I was a fanatical user of Paypal until last year when I experienced a very serious fraud transaction on my account, Paypal really fumbled the ball on that one and I ended up canceling my account. Why use Paypal when I can use my bank account or credit card direct and save the extra fees and transaction time, not too mention the potential horror of any follow up resulting from bad transaction?

    Carpe Diem

  31. futuredude
    May 12 2010

    >I use Xoom quite heavily and this decision won't affect my brand loyalty, or any of my numerous friends who also use this service. I was a fanatical user of Paypal until last year when I experienced a very serious fraud transaction on my account, Paypal really fumbled the ball on that one and I ended up canceling my account. Why use Paypal when I can use my bank account or credit card direct and save the extra fees and transaction time, not too mention the potential horror of any follow up resulting from bad transaction?

    Carpe Diem

  32. Xoom Customer Service
    May 13 2010


    Thank you for your comments and for your understanding in this matter.

    Matthew N
    Xoom Customer Service

  33. ravi
    May 23 2010

    >is xoom accept debit card??
    i want to tranfer money to china.

  34. Xoom Customer Service
    May 24 2010


    Yes you may use a debit or credit card to send to China.

    Thank you
    Matthew N
    Xoom Customer Service

  35. William
    Jun 17 2010


    Why can't I use my Canadian Debit Card/ Credit card to pay to send money to the Philippines? is there any explanation for this?


  36. Xoom Customer Service
    Jun 18 2010

    >Hello Wiliam,

    Hello William,

    Yes, we posted an explanation concerning this topic in a subsequent post. Please visit the following link for more information:

    Thank you
    Matthew N
    Xoom Customer Service

  37. MoneyTronics - Simple Money Making
    Jun 28 2010


    I cannot accept that it's true, I have some PTC (pay-to-click) accounts, and I'm registered in some websites that Pay-for-something, it's not a business, I'm paid just to see ads, for a fidelity reward, and the payment way that those sites uses is AlertPay, Liberty Reserve (not reliable) and PayPal that is the payment that I've choose, the problem is that the only way to withdraw to Brazil is using xoom, not just me, but many many others PTC user us it too, so, the PayPal is very important to us trough Xoom.

    Very sadly with Your decision,


  38. Xoom Customer Service
    Jun 28 2010

    >Hello MoneyTronics,

    Please also note that PayPal is no longer compatible with our system regardless of whether or not we wished to continue it's use.

    Thank you
    Matthew H
    Xoom Customer Service

  39. charjan06
    Jul 10 2010

    >Can we use paypal debit mastercard?

  40. Xoom Customer Service
    Jul 12 2010

    >Hello Charjan06,

    Great question. The answer is yes, you can use a PayPal issued car with the Mastercard logo.

    Thank you
    Matthew N
    Xoom Customer Service

  41. Nelson Castillo
    Oct 1 2010

    >En vez de flexibilizar y aumentar el servicio, solo restringen el servicio con una medida tan ladina como que ahora sólo aceptan tarjetas de débito/credito emitidas en USA.
    Yo no sé que concepto tiene XOOM de "crecer como compañía" cuando cada día tienen "menos clientes"…

  42. MKS
    Oct 18 2010

    >Why can't I send money to the US from Australia? XOOM has no link to the US on their country list. Am I missing something?

  43. Xoom Customer Service
    Oct 19 2010

    >Hello MKS,

    We currently do not offer service to the U.S. at this time.

    Thank you
    Matthew N
    Xoom Customer Service

  44. Ryam
    Oct 23 2010

    >According to XOOM: "PayPal is no longer compatible with our system regardless of whether or not we wished to continue it's use."

    Xoom has NO plans to have a progressive system.
    Is that what this is all about?

    Come on, Xoom must do something to advance, unless
    the real issue is… XOOM is cutting down their own IT staff… employees, that is

  45. Xoom Customer Service
    Oct 25 2010

    >Hello Ryam,

    Thank you for your comments. Again, in addition to our platform being incompatible the majority of Xoom customers using PayPal tended to be involved in merchant transactions which violates our terms of service. We have chosen to focus on accepting the preferred payment methods that are dictated by our core group of customers, those customers with U.S. based bank accounts or credit cards sending to friends and family abroad.

    Thank you
    Matthew N
    Xoom Customer Service

  46. elerouxx
    Oct 26 2010

    >I don't understand why you 'have chosen to focus' on payment methods dictated by most of your customers. Cancelling Paypal support and then international credit cards renders Xoom unusable to almost anyone except U.S. citizens. I have lots of positive things to say about Xoom, but it just came to an end for me. Now I see no way to send money to my mother except putting it into an envelope.

  47. Nelson Castillo
    Oct 26 2010

    >Xoom, Come on, I can't buy it your answer…

  48. Jaime L
    Oct 28 2010

    >I can't understand why xoom is not accepting Canadian funds anymore. I can't use debit or credit cards issued in Canada to send my money. This has affected all your canadian customer base.

    Regards, Jaime

    Nov 3 2010

    >Why you don't aloud to use a credit card issue in any country in South America? I'm in Peru with a credit card of Interbank and I can't send money to Colombia because my credit card is not from USA.This is ridiculous.Visa is accepted in the whole world.

  50. anna
    Dec 16 2010

    >Good day! I'm here in the US and a regular customer of XOOM. I usually send money to the Philippines through Cash Pick up basis and the money received there instatntly. Now my question, if I send money to my sister in her Metrobank account, and I payed here with my Debit card usually, how long does it take for her to receive the money in her account? Thanks

  51. Xoom Customer Service
    Dec 17 2010

    >Hello Anna,

    If you send to her Metrobank account it will usually be available within a few minutes. If you have any questions please send them to me at using the subject XOOMBLOGHELP

    Thank you
    Matthew N
    Xoom Customer Service

  52. KittyAntonikWakfer
    Jan 17 2011

    >On Oct 19 2010:
    "We currently do not offer service to the U.S. at this time.

    Thank you
    Matthew N
    Xoom Customer Service
    So are there plans to "offer service to the US"? And if so, when? And from which countries? Using what methods for sending and receiving?

  53. Xoom Customer Service
    Jan 18 2011


    We don't have any current plans to send funds to the U.S. We will certainly notify all of our customers as soon as there are any changes.

    Thank you
    Matthew N
    Xoom Customer Service

  54. sdiaz
    Jan 23 2011

    >why did you stop accepting Canadian issued credit/debit cards as a form of payment or funds from Canadian bank accounts? you are losing out on a huge customer base, particularly from the ever growing Colombian community…

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