Xoom is sending payments internationally. In those markets, the recipient does not necessarily even have internet access - and in some cases may not even have a bank account. Their alternative is to receive a wire from Western Union or MoneyGram, which is who Xoom has replacement value for. If you are using PayPal to send money to friends (and your friends have PayPal accounts), you probably aren't the target market segment for XOOM. Hope that helps.