Mercado Pago vs Xoom: What are the differences?

Introduction

Both Mercado Pago and Xoom are popular online payment platforms that offer convenient and secure payment solutions. While they share some similarities, there are key differences between them that make each platform unique.

1. Currency Exchange: One notable difference between Mercado Pago and Xoom is their approach to currency exchange. Mercado Pago allows users to make payments and receive funds in different currencies, offering a seamless experience for international transactions. On the other hand, Xoom specializes in international money transfers, providing competitive currency exchange rates and serving as a reliable platform for remittances.

2. Available Countries: Another significant difference is the coverage of each platform in terms of the countries they operate in. Mercado Pago has a broader presence, serving multiple countries in Latin America, including Argentina, Brazil, Mexico, and more. On the contrary, Xoom primarily focuses on facilitating money transfers to a select number of countries, mainly targeting regions like Asia, Europe, and North America.

3. Customer Base: Mercado Pago boasts a substantial customer base due to its affiliation with MercadoLibre, one of the largest e-commerce platforms in Latin America. This association enables Mercado Pago to tap into a wide user network and offer integrated payment solutions for online shopping. In contrast, while Xoom is well-known for its remittance services, it does not have a comparable customer reach in terms of online retail transactions.

4. Payment Methods: When it comes to payment methods, Mercado Pago offers a variety of options, including credit cards, debit cards, bank transfers, and cash payments through affiliated convenience stores. This versatility allows users to choose their preferred payment method based on their convenience and accessibility. Conversely, Xoom primarily relies on bank transfers and debit card payments for transactions, limiting the range of options available to users.

5. Fees and Rates: Both platforms charge fees for their services, but the fee structure differs between Mercado Pago and Xoom. Mercado Pago generally charges lower transaction fees, making it an attractive option for businesses and individuals conducting frequent online transactions. Xoom, on the other hand, may have higher fees due to the additional costs associated with international money transfers and currency exchange.

6. Mobile App Integration: Mercado Pago provides a mobile app that offers seamless integration with the MercadoLibre ecosystem, allowing users to make payments directly within the app. This integration enhances the user experience for MercadoLibre customers by streamlining the checkout process. In contrast, while Xoom also offers a mobile app, its focus is primarily on facilitating international money transfers rather than integration with specific e-commerce platforms.

In summary, Mercado Pago stands out for its currency exchange capabilities, broader geographical coverage, extensive customer base through MercadoLibre, versatile payment methods, competitive fees, and integration with the MercadoLibre ecosystem. Xoom, on the other hand, specializes in international money transfers, targeting specific regions, and offering competitive currency exchange rates.