Remitly vs Xoom: Which Money Transfer Service Is Better

What Is Remitly?

Remitly is a Seattle-based digital remittance company founded in 2011. It is designed primarily to help immigrants and expats send money home affordably and quickly. Users can send money from over 20 countries to more than 170 destinations in 100+ currencies. Transfers can be made via smartphone, tablet, or the Remitly website.

Remitly offers two transfer speed tiers:

• Express — arrives in minutes, at a slightly higher fee
• Economy — takes 3–5 business days, with lower fees and a better exchange rate

Recipients can receive money via bank deposit, cash pickup, mobile wallet, or home delivery.

What Is Xoom?

Xoom is a digital money transfer service founded in 2001 in San Francisco and acquired by PayPal in 2015. It operates as a standalone service under the PayPal family and is available to users in the US, Canada, UK, and the Eurozone. Xoom supports transfers to over 130 countries and offers a wide range of delivery methods including bank deposits, cash pickup, home delivery, mobile top-ups, and even utility bill payments in select countries.

One of Xoom's standout advantages is its deep integration with PayPal — if you already have a PayPal account, all your linked cards and bank accounts are ready to use without re-entering details.

Remitly vs Xoom: Side-by-Side Comparison

Fees Compared

Transfer fees for both services depend on the destination, transfer amount, and payment method.

Remitly fees: For an Economy transfer from the US to Argentina, the fee can be as low as $0.49. Express transfers range from $2.99 to $14.99 depending on the destination and amount. Remitly sometimes waives service fees on select corridors, making it highly competitive.

Xoom fees: For the same US-to-Argentina route, a bank or PayPal-funded transfer under $3,000 costs between $2.99 and $30. Paying by debit or credit card can push fees significantly higher — in some cases over $46. For most corridors and amounts, Remitly charges lower transfer fees than Xoom.

Exchange Rates Compared

Both services apply a markup above the mid-market exchange rate — this is an additional hidden cost that isn't always obvious upfront.

Remitly's markup ranges from 0.4% to 3.0% depending on the currency pair and transfer method. For a US-to-India transfer, the Express option carries a 0.87% margin while Economy is just 0.42%.

Xoom also applies a markup of 0.4% to 3.0%, and its rates shift based on the amount being sent. Smaller transfers typically attract worse rates. Overall, Remitly tends to offer slightly better exchange rate pricing across most corridors.

Transfer Speed

Both platforms can deliver money quickly when needed, but the specifics vary.

Remitly's Express option delivers in minutes for most destinations. The Economy option takes 3–5 business days but comes with better rates and lower fees.

Xoom is also capable of near-instant transfers for cash pickups. Bank deposits can take anywhere from a few minutes to four business days depending on the country and payment method.

Factors that can delay either service include incorrect recipient details, local bank holidays, or the sender's own bank processing times.

Payout Options

Remitly supports: bank deposits, cash pickup at partner locations, mobile wallet transfers, home delivery, and ATM payouts.

Xoom supports: bank deposits, cash pickup, home delivery, mobile wallet, mobile phone top-ups, and utility bill payments in select countries.

Xoom has a slight edge in delivery variety, particularly for bill payments and mobile top-ups. However, the availability of these options varies significantly by destination country.

Payment Methods

Remitly accepts debit cards, credit cards, bank transfers, and Apple Pay.

Xoom accepts debit cards, credit cards, bank transfers, and PayPal balance. The ability to pay with a PayPal balance is a significant convenience for existing PayPal users — no need to re-enter card or bank details.

Safety and Regulation

Both services are legitimate and regulated providers.

Remitly is registered with the US Department of the Treasury as a Money Services Business and holds money transmitter licences across multiple US states. It is also regulated by the Financial Conduct Authority (FCA) in the UK and the Central Bank of Ireland for European operations. It uses 256-bit SSL encryption, two-factor authentication, and offers a 100% satisfaction guarantee — meaning if your transfer is delayed, the service fee is refunded.

Xoom, as part of PayPal, benefits from the regulatory framework and compliance infrastructure of one of the world's largest payment companies.

Who Should Use Remitly?

Remitly is the better choice if you:

• Want lower, more transparent fees
• Are sending money on popular remittance routes (e.g. US/UK/Canada to India, Philippines, Mexico)
• Need cash pickup or mobile wallet options
• Want 24/7 multilingual customer support
• Prefer flexible transfer speeds

Who Should Use Xoom?

Xoom is a good fit if you:

• Already have a PayPal account and want seamless integration
• Need to pay overseas utility bills
• Want to top up a mobile phone in a recipient country
• Are sending to a wider range of developed countries

How Does RemitBee Compare?

While both Remitly and Xoom are solid options, RemitBee offers a compelling alternative — especially for Canadians looking to send money abroad. With competitive exchange rates, low fees, and a simple online platform, RemitBee is worth comparing before you commit to any service.

See How Much You Can Save with RemitBee

Frequently Asked Questions

Is Remitly cheaper than Xoom?

In most cases, yes. Remitly tends to charge lower transfer fees and offers marginally better exchange rates across most corridors, particularly for Economy transfers.

Can I use Xoom without a PayPal account?

Yes, but PayPal account holders get added convenience since their linked payment methods carry over automatically.

Which is faster — Remitly or Xoom?

Both can process transfers within minutes for certain methods. Remitly's Express option is specifically optimised for speed. Xoom's cash pickup transfers are also near-instant.

Are Remitly and Xoom safe to use?

Yes, both are regulated financial services with industry-standard security. Remitly also offers a refund guarantee on service fees if your transfer is delayed.

Which has better customer support?

Remitly offers 24/7 multilingual support, which is a distinct advantage over Xoom's more limited service hours.