Xoom Madagascar to receive money in Madagascar via Paypal
Xoom Madagascar is a service that is part of Paypal which allows you to receive money in Madagascar. It is equivalent to Western Union.
Xoom Madagascar was acquired by Paypal in 2015 and in 2019, Paypal is launching it as an international money transfer service. Affiliation with Paypal is interesting since it allows someone, living in Madagascar, to receive money in cash through a Paypal account. Please note, the sender of the funds must be European and American (30 countries are supported). The sender can reside in any of these 30 countries, but recipients can reside in more than 130 countries. So this is not an online payment, but an asymmetric transfer of money from rich countries to poor countries.
Xoom Madagascar offers a very simple interface
I had heard of Xoom Madagascar, so I decided to take a look. You can open your own account on Xoom with an email address, but also use it through your Paypal account. The principle is as follows: Sender (with Paypal) -> Xoom -> Transfer of money in cash -> You withdraw the money via one of the withdrawal points available in Madagascar.
How to receive money from Xoom in Madagascar
Note that I haven’t fully tested the process, as being in Madagascar, I can’t send the money, just receive it. Because at the time of the transaction, you will be asked to indicate your country of residence and Madagascar is not compatible at the moment (for sending). So, let’s say I live in France and I want to send 100 euros to someone in Madagascar. So, I go to Xoom Madagascar and I indicate the amount:
So, for 100 euros, you will pay 2.99 euros in commission which is much lower than a traditional bank transfer. Xoom is slightly more expensive than Western Union (for a money transfer from France to Madagascar, because WU shows me 1.90 euros in commission). So after you have indicated the amount, you click Continue and you will have the Receipt Mode which is cash withdrawal. Just click Continue and Xoom displays the available pickup points.
Malagasy banks compatible with Xoom Madagascar
Currently, Xoom Madagascar is a partner with Banque des Mascareignes and SIPEM. Note that in Xoom’s locations, the Banque des Mascareignes is no longer displayed, but only SIPEM. This bank currently has 8 agency in Antananarivo, but it also has some in Majunga, Moramanga and Tuléar. SIPEM is not present in Diégo or Fianarantsoa.
This clearly limits the possibilities of Xoom. Because Western Union is present in almost all cities. From July 2020, banks such as BFV-SG or BNI have not renewed their contract with WU, but it still works at Caisse d´Epargne. But for Tana, Xoom will work.
So, we come back to Xoom Madagascar and click on Continue. This time, you must provide the name of the recipient. You must include the name (as it is marked on their ID card), address, city, phone number and an email address (the latter is optional).
And I couldn’t go any further because I couldn’t pay, because Madagascar can’t send money through Xoom, only receive it.
Xoom, an alternative to Paypal in Madagascar?
Xoom Madagascar might seem like an alternative to Paypal in Madagascar, but there are limits. On the one hand, Xoom is a transfer of money between individuals. Businesses can’t really use it. Second, most clients in Freelancing, since that’s what interests us, have never heard of Xoom. We could encourage them to use them, but it is still complicated.
However, when sending money through Xoom Madagascar, you can use your Paypal balance, a credit card or a bank account. And there it is interesting for individuals in Europe who want to send money to Madagascar via Paypal. Xoom’s interface is very intuitive and that can save the day from time to time. However, compared to Western Union, sending’s costs are still expensive and Xoom also makes money on converting the currency rate, for example, from Euro to ariary.
But it is still one more alternative for money transfers. Money transfer is a $ 600 billion market with a lot of people in poor countries going to work overseas. This allows them to send money to their families as quickly as possible. Because Xoom Madagascar claims that the transfer is instantaneous and that the money is available within minutes of sending.
People in Madagascar would have to test Xoom to see if the process is as easy, especially if there are no worries about withdrawing cash at SIPEM or the Banque des Mascareignes.