Nonexistent customer service
Prior to being acquired by PayPal, it was smooth going. Now, good luck. If something goes wrong with your PayPal account, not only can you not use Xoom; you will be told that, while PayPal can stop a Xoom transaction, Xoom is separate from PayPal. So basically, in order to use Xoom, I have to resolve an issue with PayPal that arose from a change to their terms. Ridiculous.