Spotify will do just fine and has MUCH higher quality. Airplay receiver connected to that small stereo with do. You can get one for like $50 at Amazon.
This is what I have in my kitchen - active speakers that are connected to $50 Airplay receiver. I can play from iPad or iPhone.
XM is obsolete low quality tech. Used to be useful on long highway trips but now with unlimited cell data plans why does it even exist still.