2025 Latest PayPal and Xoom Cross-Border Remittance Process Guide

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You can easily complete cross-border remittances using PayPal and Xoom. In 2025, the global digital cross-border remittance market is expected to reach 12 to 13.4 billion USD, with an annual growth rate of about 15%. Xoom, under PayPal, collaborates with Tencent Financial Technology to support direct transfers to WeChat Pay wallets or bank accounts, with a maximum of $5,000 per transaction. This optimized process offers you a more convenient and secure remittance experience, meeting the digital needs of Chinese users.

Key Highlights

• PayPal and Xoom both enable convenient and fast cross-border remittances, supporting multiple currencies and countries to meet diverse user needs.
• During registration, you need to prepare a valid email, phone number, and ID documents, complete real-name authentication, and link a bank card to ensure account security.
• Before transferring, verify recipient information, understand fees and transfer times to avoid failures due to incorrect details.
• PayPal is ideal for multi-currency and global payments, while Xoom offers fast transfers and diverse receipt methods, allowing users to choose based on needs.
• Enabling two-step verification and regularly changing passwords can effectively protect account security, and contacting customer service promptly resolves issues.

PayPal Cross-Border Remittance Process

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Registration and Setup

You can quickly register a PayPal account and complete setup with the following steps:

1. Prepare a commonly used phone number and email. It’s recommended to use international emails like Gmail or Outlook. For business accounts, you also need business owner information, a scanned business license, and legal representative ID proof.
2. Visit the PayPal website and click the register button in the top right corner, choosing a personal or business account.
3. Enter your phone number, email, password, and address. Business accounts require uploading the business license and front/back photos of the legal representative’s ID.
4. Verify your email and identity. PayPal will send a verification email, and you need to click the link to complete verification.
5. Go to the “Wallet” page to add a credit card or bank account. It’s recommended to link a VISA or MasterCard with a U.S. billing address. You can also link accounts like Velo Checking from Bank of America or Hong Kong bank accounts.
6. Complete a small verification transaction to confirm the linked information is correct.
7. It’s recommended to enable two-step verification and link multiple U.S. phone numbers to enhance account security.

Tip: PayPal does not support RMB withdrawals. You can use third-party tools like Payoneer or WorldFirst to transfer funds to a Hong Kong bank account.

Transfer Preparation

Before initiating a cross-border transfer, you need to prepare the following information and documents:

1. The recipient’s PayPal account email address.
2. Your PayPal account has completed real-name authentication and bank card linking.
3. Confirm the recipient’s account is active and supports the required currency. PayPal supports 25 currencies, including USD, EUR, GBP, CAD, AUD, JPY, and RMB, covering 202 countries and regions globally.
4. If you plan to withdraw to a Hong Kong bank account, ensure the bank account name matches the PayPal account name.
5. Some banks may require transaction records or tax payment proof, especially for large transfers.

Initiating a Transfer

You can initiate a PayPal cross-border transfer through the following methods:

You only need to log into your PayPal account, select “Transfer” or “Send,” enter the recipient’s email, amount, and currency, and confirm to complete the operation. PayPal will automatically handle currency conversion and notify the recipient.

Fees and Timing

PayPal cross-border remittance fees and transfer times are as follows:

• Merchant transaction fees are typically 4.4% plus a fixed fee (varies by currency).
• Small payments (under $5) have a 6% fee plus a fixed fee.
• Cross-region transfer fees are 5%, whether using PayPal balance, linked bank account, or card.
• Currency conversion fees are generally 2.5%–4%, with PayPal displaying the real-time exchange rate including fees on the transaction page.
• Withdrawals to U.S. bank accounts incur a $35 fee per transaction, while fees for Hong Kong bank account withdrawals vary by amount and currency conversion.

Transfer time reference table:

You can view fees and exchange rates in real-time on the transaction page to avoid additional costs due to rate fluctuations.

Common Issues

When using PayPal for cross-border remittances, you may encounter the following issues:

1. Incorrect address information can lead to transfer failure. Carefully verify country, city, and zip code details.
2. Insufficient funds or restricted payment methods will prompt you to change the payment method.
3. If the recipient’s account is unverified or restricted, they need to complete verification or contact customer service.
4. Mismatched billing addresses between the linked credit card and PayPal account may cause payment failure. Use a card with a U.S. billing address.
5. PayPal receipt fees are high, and even if funds arrive, PayPal may reclaim them if the client uses a credit card.
6. Accounts may be suspended after complaints. Maintain good transaction records to avoid disputes.
7. PayPal supports 202 countries and regions with 25 major currencies. You can transfer to global users anytime but should monitor local policies and rate changes.

Note: If you encounter transfer failures or account issues, contact PayPal customer service via the website for professional assistance.

Xoom Cross-Border Remittance Process

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Registration and Setup

You can register via the Xoom website or official app. Before registering, prepare a valid email (e.g., QQ, Outlook, or Gmail), a phone number for receiving SMS, a bank card under your name (Visa or MasterCard), and ID documents (ID card or passport).
Registration process:

1. Visit the Xoom website or download the official app and click “Register.”
2. Follow prompts to enter personal information, including email, phone number, and bank card details.
3. The system will send a verification email to your inbox. You need to click the link within 3 days to complete verification.
4. If registering via the app, the system will send a 4- or 6-digit PIN code to your phone. Enter the PIN within 30 minutes to complete registration.
5. Set a password of 8–16 characters, including uppercase, lowercase, and numbers or special characters, excluding your name, phone number, or email.
6. After registration, log in, go to the KYC verification page, upload ID photos, and submit for official review. Once approved, you can use deposit and transfer functions.

Tip: Linking a Visa or MasterCard from a Hong Kong bank increases transfer success rates.

Transfer Preparation

Before initiating a cross-border transfer, confirm the following:

• Recipient’s name and bank account details are accurate. Xoom supports direct transfers to Chinese bank accounts, and recipients don’t need a Xoom account.
• Your account has completed real-name authentication and bank card linking to ensure security.
• You understand the transfer amount, fees, and real-time exchange rates. Xoom displays all fees and the recipient’s actual received amount on the transfer page.
• You can pay with PayPal balance, bank account, or credit card. Some regions also support cash pickup and home delivery.

Note: Xoom supports multiple fiat currencies, including RMB, USD, and EUR. Choose the currency based on the recipient’s needs.

Initiating a Transfer

You can follow these steps to initiate a Xoom cross-border transfer:

1. Log into your Xoom account and go to the transfer page. If the page is in English, switch to Chinese in the top right corner.
2. Enter the transfer amount, and the system will display fees and the recipient’s actual received amount.
3. Click the “Send Now” button, confirm the details, and click “Continue.”
4. If not logged in, the system will prompt you to log in with a PayPal account or register a new one.
5. Enter the recipient’s name, bank account details, and ensure they match the bank’s records.
6. Select the payment method and pay the transfer amount.
7. Xoom will review the transfer, and once approved, the recipient will receive the funds.

The process is simple and fast, supports Chinese, and is suitable for users with language barriers. You can track transfer progress in your account anytime.

Fees and Timing

Xoom’s cross-border remittance fees and transfer times have clear advantages:

• For transfers of $1,000 or less, the fee is $4.99. Transfers over $1,000 are fee-free.
• In addition to service fees, Xoom charges currency conversion fees. Rates are displayed in real-time on the transfer page for cost comparison.
• You can pay with PayPal balance or bank account; some credit cards are also supported.
• In most cases, Xoom cross-border transfers arrive within minutes. If processed during China banking hours (7:30–22:00 Beijing time), transfers typically arrive within 30 minutes.
• If you choose bank transfer as the funding source, arrival may take up to three days. Xoom processes transfers only after receiving bank funds.

You can view all fees and rates in real-time on the transfer page to avoid extra costs from rate fluctuations.

Common Issues

When using Xoom for cross-border remittances, you may encounter these issues:

• Email or phone number verification fails during registration. Ensure details are correct, the email can receive messages, and the phone can receive SMS.
• KYC identity verification fails. Upload clear ID photos and ensure information is valid.
• Transfer fails or is delayed. Check if recipient bank account details are correct or confirm if the bank supports international transfers.
• Fee and rate issues. Xoom displays all fees and real-time rates on the page for you to verify in advance to avoid misunderstandings.
• Account security issues. Enable two-step verification and change passwords regularly to protect your account.
• Xoom supports multiple payment methods, including PayPal balance, bank accounts, and credit cards. Choose the most suitable method based on your needs.

For unresolved issues, contact Xoom customer service via the website or app for professional assistance.

Platform Comparison Analysis

Process Comparison

When choosing a cross-border remittance platform, you should first consider differences in the process. Although PayPal and Xoom are both under PayPal, their processes and service focuses differ. The table below outlines their main differences:

If you prioritize e-wallets and multi-scenario payments, choose PayPal. If you need diverse receipt methods or fast transfers to Chinese bank accounts, Xoom is more suitable.

Fees and Speed

When making cross-border remittances, fees and transfer speed directly impact the experience. PayPal and Xoom each have advantages:

If you need ultra-fast transfers, Xoom supports arrivals within minutes, ideal for urgent remittances. PayPal covers more countries, suitable for global multi-currency transfers. Choose based on your specific needs.

Applicable Scenarios

Your experience varies by scenario when choosing a platform:

• PayPal, via its stablecoin PYUSD, supports fast, low-cost, near-instant settlements for individuals and businesses, ideal for small-to-medium cross-border transfers and B2B payments. You can use blockchain technology for global transfers with low fees and high speed.
• Xoom supports a Chinese interface, suitable for online operations with strong brand recognition. If you need diverse receipt methods like home delivery or cash pickup, choose Xoom. However, Xoom has higher fees, larger rate fluctuations, and stricter account management, making it more suitable for traditional online remittance users.

You can also consider other mainstream platforms:

• Wise supports multi-currency accounts, with transparent rates, ideal for long-term conversions and multi-currency management.
• Panda Remit supports direct USD transfers to Chinese bank cards, with no fees for transfers ≥$6,000 and low rate losses, suitable for dispersed transfers under $50,000.
• Alipay, via platforms like Wise, can transfer foreign currencies to Alipay international accounts, automatically converting to RMB, suitable for salary income, Hong Kong/U.S. stock dividends, and similar scenarios.
• These platforms emphasize compliance, with some supporting auto-conversion, and each has advantages in fees and rates. You can choose flexibly based on amount, purpose, and transfer speed.

Tip: When choosing a cross-border remittance platform, prioritize transfer speed, fee transparency, and diverse receipt methods to ensure secure and efficient fund arrivals.

Cross-Border Remittance Security

Risk Prevention

When making cross-border remittances, you must understand the main risks of different methods. The table below summarizes common risks and their manifestations:

You can take the following measures to reduce risks:

• Always verify recipient names and bank account details to avoid losses from errors.
• Avoid transferring on public networks to prevent data theft.
• Choose reputable, compliant platforms like PayPal, Xoom, or Hong Kong banks to ensure fund security.

Mainstream banks and platforms continuously enhance security measures. For example, platforms strengthen anti-money laundering controls, using technology to shorten transfer cycles and integrate systems for one-click logins and real-time fund tracking. You can enjoy a more efficient and transparent remittance experience.

Account Protection

When using PayPal and Xoom, platforms protect your account through multiple methods. The table below outlines PayPal’s main security measures:

You can further protect your account with these methods:

1. Enable two-step verification to enhance login security.
2. Regularly change passwords, avoiding duplicates with other platforms.
3. Avoid clicking links in unfamiliar emails or SMS to prevent phishing attacks.
4. Monitor platform security notifications and contact customer service immediately for anomalies.

Mainstream banks and platforms also improve payment infrastructure, offering unified online fund management and collaborating closely with institutions like Hong Kong banks to ensure timely arrivals and conversions. By following platform rules and actively cooperating with security measures, you can significantly reduce risks in cross-border remittances.

You can quickly complete cross-border remittances with PayPal and Xoom. PayPal is ideal for multi-currency, global personal and business payments. Xoom is user-friendly, supporting 24/7 multilingual customer service, suitable for Chinese users and cross-border freelancers. When choosing, consider transfer speed, fees, and security, selecting the best platform for your needs to ensure efficient and secure fund arrivals.

FAQ

What to do if a PayPal transfer fails?

You should first check if the recipient’s email and account details are correct. If correct, contact PayPal customer service for detailed solutions.

How long does a Xoom transfer take?

You typically receive funds within minutes. If using a bank account payment, it may take up to three days. You can track progress in real-time on the transfer page.

Are there amount limits for PayPal and Xoom transfers?

You can choose the appropriate transfer amount based on platform limits.

How to protect account security?

You can enable two-step verification and change passwords regularly. Avoid transferring on public networks. Contact customer service immediately for anomalies.

How are transfer fees calculated?

You can see all fees on the transfer page. PayPal fees are ~4.4% plus a fixed fee. Xoom charges $4.99 for transfers under $1,000, free for over $1,000.

After a deep dive into the cross-border remittance processes of PayPal and Xoom, it’s clear that despite their convenience, you may still be bothered by high fees, opaque exchange rates, and lengthy transfer times. Whether it’s PayPal’s transaction fees of up to 4.4% or Xoom’s occasional transfer delays, they often fall short of meeting your full needs for efficient and low-cost remittances. This is precisely the pain point that BiyaPay is dedicated to solving. We offer a superior cross-border financial solution, allowing you to say goodbye to high remittance costs. With a simple registration, you can enjoy remittance fees as low as 0.5% and achieve same-day delivery to most countries and regions worldwide, far exceeding the speed of traditional platforms. We also provide a real-time exchange rate converter and support the conversion between various fiat and digital currencies, enabling you to easily manage your global assets on a single platform. Say goodbye to high costs and long waits, and register now to start your new journey in smart finance.