Remitly Vs Xoom

Remitly and Xoom are fairly similar in terms of their service. So which one is better for you and your needs? This review compares these two providers side by side to find the best international money transfer service for you, including:

  • Feature comparison
  • Fees and exchange rates
  • Delivery times and options
  • Safety and regulation
  • Customer satisfaction

Summary: Xoom is a convenient option if you are looking to deliver money on the same day and pay with your PayPal balance, or any payment method you already have linked to your PayPal account. Remitly, on the other hand, offer variable payment options, including cheaper fees for Economy payments, or a faster Express service. In our comparison of costs for an example transfer, Remitly was slightly cheaper than Xoom.

Learn more about RemitlyLearn more about Xoom

Remitly Vs Xoom: side by side

Send payments to145+ countries145+ countries
Send payments from20+ countriesThe US, UK, EEA or Canada
Pay by card or bank transferYY
Pay by PayPal balanceNY
Multi-currency accountsNN
Pay to bank accountsYY
Cash payout availableYY
Pay to mobile money accountYY
Reload mobile phonesNY
Fully licensed and regulatedYY
Business services availableNN

So, to summarize: 

  • Remitly and Xoom both cover a similar number of receiving countries – Remitly supports more sending countries
  • Xoom allows you to pay with a PayPal balance, bank transfer or card, Remitly supports only card and bank transfer
  • Remitly offers payouts for cash collection and delivery,  and to mobile wallets – Xoom supports these payout methods – and also allows you to top up mobile phones in select countries
  • Xoom and Remitly are both for personal use only
  • Both providers are fully authorized to operate in the US and internationally

Go to Remitly

While Remitly and Xoom both offer international payments their services are a little different. Xoom is part of the PayPal family, so it’s convenient to use if you already have a PayPal account, as all your linked payment methods for PayPal will be automatically available in Xoom. Xoom also supports payments to top up mobile phones in some countries. Remitly payments can be made to and from a good selection of countries, with an extensive agent network for cash collection services.

Whether Remitly or Xoom is best for your payments will come down to the details of where you’re sending money to, and how you want it to be received. You’ll need to compare both alternatives for your specific payment, to see which is cheapest and most convenient for you.

Remitly vs Xoom: The important bits

RatesExchange rates include a markupExchange rates include a markup
Fees2 different rates – Express and Economy – availableVariable fees based on service and destination
SpeedExpress payments can arrive instantly, Economy may take a few daysFrom a few minutes to a few days depending on the payment type
ServiceOnline, in app and by phoneOnline, in app and by phone
SafetyFully regulated and licensedFully regulated and licensed
Reviews (TrustPilot)Trustpilot score: 4.1/5, Great rating, from 38,000+ reviewsTrustpilot score: 2.8/5, Average rating, from 22,000+ reviews

Rates: Xoom and Remitly both add a markup to the exchange rates used

Fees: Both providers have variable fees which are based on the destination country. Remitly also offers a choice of faster Express payments – which have higher fees – or cheaper Economy transfers when time is not a concern

Speed: Both Xoom and Remitly cash collection and mobile money payments may be ready in minutes – bank transfers depend on destination and may arrive quickly or take a day or two depending on the payment type you choose.

Service: Both providers offer multilingual service in a range of languages, online, in-app and by phone

Safety: Both providers are fully licensed and regulated

Reviews: Remitly scores a Great review rating on Trustpilot, Xoom has a lower, Average rating, with fewer posted reviews

Go to Remitly

Pros and cons

  • Pay out options including cash collection, bank account and mobile money account deposits
  • 145+ countries covered
  • Choose the delivery speed you prefer
  • Arrange payments online or in-app for convenience
  • Pay out options including phone top up, cash collection, bank and mobile money account deposits
  • Use payment methods linked to PayPal for convenience
  • 145+ countries covered
  • Exchange rate markups are used
  • Services vary by destination country
  • No business services
  • Exchange rate markups are used
  • Transfers may take several days depending on the deposit method
  • No business services

Remitly Vs Xoom: The verdict

Remitly is a strong option for customers who want to send money home on popular remittance routes, especially if they’re looking for cash collection or mobile money pay outs. Transfers can be received quickly and arranged conveniently from 20+ countries around the world.

Xoom covers a broad range of payout options, and is convenient especially if you’ve already got a PayPal account set up. All your PayPal payment methods are available in Xoom too, so you don’t need to add your bank or card details again. You can also pay with your PayPal balance.

In our comparison, Remitly was cheaper than Xoom for the payment we modeled. However, to check whether Remitly or Xoom wins for your payment you’ll need to get a quote for your particular transfer from each service, to see which is cheapest and most convenient. Both providers let you model your transfer with no commitment, so it’s easy to see which is best for you online.

Go to Remitly

About Remitly and Xoom

Remitly was founded in 2011 to make remittance payments faster and cheaper for people living overseas and sending money home. Remitly has a broad agent network to allow cash collections even in areas where access to banking services may be limited.

You can send payments with Remitly from 20+ larger developed countries, to over 145 countries.

Xoom is part of the PayPal family. You can send payments for cash collection, to bank and mobile money accounts, or even to pay bills and top up mobile phones. Services vary a little depending on where you’re sending a payment to.

You can send payments with Xoom from the US, UK, EEA and Canada, to over 145 countries.

How do they work?

To make a payment with either Remitly or Xoom, you’ll need to create an account online or in the app. This is straightforward to do by following the on-screen prompts. However, to keep your money safe and comply with US law you may also need to provide documents for verification. Whether or not you’re asked to get verified may depend on where you’re sending money to and the value of your payment.

When your account is set up you can make transfers in just a few steps. Here’s how to send money with with Remitly:

  1. Sign in on the webpage or open the Remitly app
  2. Select Get started or Send money
  3. Enter the amount you want to send and the delivery method
  4. Add recipient information – bank account details for a bank transfer, or name and personal details for cash pickup
  5. Fund with your preferred payment method – bank account or card
  6. Review, and when you’re ready, hit Send money
  7. You’ll see a confirmation screen once the payment is finalized

Here’s how to send money with Xoom online or in the Xoom app:

  1. Log into your account
  2. Type in how much you want to transfer and the delivery method
  3. Enter the recipient’s details – bank account details for a bank transfer, or name and personal details for cash pickup
  4. Check over the details
  5. Fund your payment using your PayPal balance, a card or bank transfer
  6. Confirm and your money will be on the move

Remitly vs Xoom fees

It’s important to be aware of the fees involved when making an international money transfer.

  • Remitly’s fee depends on the amount you are sending, where you are sending the funds, and whether you choose an Express or Economy transfer
  • Xoom’s fee structure vary depending on the transaction type, amount and currency you are sending, payment method and the currency received by your recipient

Be mindful that there could be more fees involved than the ones mentioned here. You could be charged a cash advance fee by your card provider if paying by credit card. In addition, your recipient’s bank could charge a deposit fee or correspondent bank fee to deposit the funds.

Remitly vs Xoom: exchange rates

Both Remitly and Xoom add a markup to the mid-market exchange rate, when they calculate the exchange rate used to convert your dollars to the currency you need.

This exchange rate markup is an extra fee. In fact, it’s often the highest of all of the fees you pay for an international transfer. It’s also the trickiest to see, as it’s rolled into the rate you’re offered when you set up your payment. As markups are applied as a percentage of the transfer value, they quickly mount up if you’re sending a large amount.

Before making a decision about which provider to use, it is important to compare live exchange rates offered by each provider.

Here are three ways to compare the rates offered by Xoom, Remitly, and other providers:

  1. View live rates online on Xoom Exchange Rate or Remitly Exchange Rate
  2. Use Remitly’s and Xoom’s currency calculator
  3. Compare exchange rates of up to 8 different providers at once with our comparison engine

We’ll also see how the Remitly exchange rate compares against the Xoom exchange rate for an example transfer, next.

Remitly vs Xoom: which is cheaper?

Whether Remitly or Xoom is cheaper for your transfer will depend a lot on the specific details of your payment. However, to give an idea, let’s look at an example payment.

In this case we’ll imagine you’re sending a payment of 1,000 USD to a friend in Mexico, to be deposited into their bank account.

ProviderFeeExchange rateRecipient gets
RemitlyNo transfer fee1 USD = 18.7698 MXN18,769.80 MXN
XoomNo transfer fee1 USD = 18.60636 MXN18,603.64 MXN

*Fees and rates correct at time of writing, 20th March 2023

As you can see, in this example, sending your payment with Remitly means your recipient gets more. As neither provider has a transfer fee for this specific payment, the difference comes down to the exchange rate used to convert your dollars to pesos for deposit. While both Xoom and Remitly add a markup to the exchange rate used, in this case, Remitly has a smaller markup – and so a cheaper overall cost.

Compare both providers for your transfer, to see which works out best in your specific situation.

Go to Remitly

Remitly Vs Xoom: which is faster?

If it’s important that the payment reaches the recipient as quickly as possible, then you will need to do your research on the times of transfers of the providers you’re looking at.

Remitly offers two choices when sending your money:

  • Express transfers which typically sends money within minutes
  • Economy transfers which takes 1-5 business days

Xoom’s transfer time depends on the following:

  • The country you’re sending the money to
  • Method of delivery
  • Payment method

Generally, it takes 1-5 business days.


The Consumer Financial Protection Bureau (CFPB) ensures and regulates fair and transparent conduct of financial products and services.

Is Remitly safe? The good news is that Remitly is safe to use, as it’s licensed to transmit money in all US states and Washington, D.C.

Xoom is registered and licensed to operate, under PayPal’s licenses. This means it’s a safe provider to use.

Ease of use

  • Creating an account: Xoom and Remitly accounts are opened and operated online or using the provider app.
  • Making a transfer: Remitly and Xoom international payments can be made online or in the provider app.
  • Ways to send money:  Xoom and Remitly both offer transfers funded by bank transfer, credit or debit card.  Xoom payments can also be funded with a PayPal balance.
  • Languages:  Remitly and Xoom offer global support in a range of languages, online, using the app, and by phone.
  • Minimum & maximum amounts: Remitly and Xoom sending limits apply to the amount you can transfer every 24 hours, 30 days and 180 days. These limits vary depending on the specific services you use. You can increase your limit by providing additional verification documents.

Supported currencies

All money transfer companies will offer you the ability to transfer in any main currency, such as GBP, AUD and USD. If you need to send a less popular currency, you’ll need to do your research.

For an extensive list of currencies available for transfer with Remitly and Xoom, check out our reviews for each company.

You can also find alternatives to Remitly and alternatives to Xoom, in these handy guides.

Conclusion: Remitly vs Xoom

While Remitly and Xoom both offer international payments, the specific services they provide are a little different. Remitly has a focus on supporting customers working abroad to send payments home, serving popular remittance routes with transfers for cash collection, delivery and to mobile money accounts. You can also send transfers to bank accounts.

Xoom is part of the PayPal family, and lets you pay for transfers overseas with a card, bank transfer or PayPal balance. You can send to bank and mobile money accounts, for cash collection, and to pay overseas bills and top up cell phones. However, service availability does vary by destination.

Xoom can be convenient if you already have a PayPal account as you won’t need to link your card or bank account again – you can just use the information held by PayPal already. However, in our example comparison, Remitly was cheaper thanks to a better exchange rate for the payment we modeled.

Learn more about RemitlyLearn more about Xoom

Xoom vs Remitly FAQs

Which is better Xoom or Remitly?

Xoom and Remitly offer fairly similar services, so you’ll want to compare them both to see which suits you best. Xoom is convenient as you can use a PayPal payment method easily. However, Remitly may use a better exchange rate for some transfers. Comparing both is important to make sure you get the best deal out there.

Is Remitly or Xoom cheaper?

In our comparison payment, Xoom was a little more expensive than Remitly due to a higher exchange rate markup. However, which is best for you will depend on the specific payment you want to make, so it’s worth comparing a few options before you decide.

Is Remitly or Xoom faster?

Xoom payments can arrive in a few minutes, but may take a few days for some services and destinations. Remitly Express payments may be processed in minutes. Economy transfers can take 3 – 5 business days to arrive.

How many currencies do Remitly and Xoom support?

From the US you can send money to over 145 countries with Remitly. Xoom customers can also send payments to 145+ countries.


Seyma Mektepli
Seyma is an experienced content writer and editor-in-chief at Exiap, delivering informative articles on personal finance, and money transfers.
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Last updated
March 29th, 2023