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Remitly vs Xoom: A Comparison of Money Transfer Services

Remitly vs Xoom

Have you ever needed to send money to someone overseas? If you have, then you’ve probably already heard of Remitly and Xoom.

These two international money transfer providers have gone head to head in terms of their standout services.

So, which one should you use for your transfers? That’s what needs to be answered in this Remitly vs Xoom article, and we’ve got you covered.

Below, we explore the unique features and benefits of both Remitly and Xoom to help you choose which one is best for you.

Table of Contents
Table of Contents

Overview of Remitly


Remitly is one of the most popular international money transfer services you can use to send money.

Customers can send money to a total of 57 different locations worldwide. And that includes 17 different countries even though Remitly is mainly based in Seattle, USA.

Remitly boasts a total of 3 million customers from all over the globe.

It lets all users do international money transfers via different payout methods. These include onsite pickups, direct wallet deposits, bank-to-bank transfers, and even door-to-door deliveries.

For more information on how it fares against its competitors, you can also check out our article on Remitly vs. Transferwise (now known as Wise).


  • Accepts different money transfer options
  • Numerous cash pickup locations all around the world
  • Allows users to schedule regular transfers for repeat transactions
  • Competent customer support and customer service team


  • Has fixed transfer limits for international money transfer services
  • No options for managing a personal account
  • Does not accept travel debit cards
  • Not compatible with online wallets

Standout Features of Remitly

Features & Benefits


Since Remitly prides itself in being a stellar international money transfer company, it naturally has plenty of branches and partner outlets across the globe.

Transfer Methods and Currencies

As a money services business, it Remitly accepts money deposits and money transfers for up to 30 currencies. There are a variety of ways that you can send these currencies to your recipient.

Payment options you can choose from are foreign bank transfers, credit cards, and pick-ups.

Mobile Application

Remitly has its own mobile applications that each customer can use. The customer just has to download the app and then sign up for an account to start sending money.

Registration Process

Remitly customers can also do the registration process in person when they go to a Remitly branch. Customer service is excellent at all the cash pick-up locations around the world.

The money transfer process is pretty straightforward. The customer just has to list down the recipient’s payment information and then indicate the type of cash-out method they want.

Just be sure to take note of the different exchange rates since these vary based on the country you’ll be sending your money to.

Tip: If you’re feeling lost in the app, you can always just reach out to the English customer support team for help. Depending on your country, there will be a special team catered for your needs.

Delivery Options

There are four ways for your recipient to claim the money sent. These are via:

  • Bank deposit
  • Cash pickup
  • Mobile money
  • Home delivery

Remitly Pricing


Remitly rates are pretty simple to calculate.

The rates are based on the exchange rates of your country of origin. Remitly takes 2% of the total amount of money you’re transferring.

On top of that rate, Remitly will also charge a fixed service rate, depending on the country you’re in. It’s best to clarify with your Remitly branch how much that will be since it varies.

One more thing to take note of is that Remitly fees are also based on the speed of sending time you want:

Express Transfer

If you need your money transferred instantly, then you can choose the Express Transfer.

You can use your credit card or debit card for this. Just be aware that the credit card option will cost you extra fees.

The rate for the Express Transfer ranges from approximately $4.99 to $99.99 per transaction. These rates depend on the total amount you’re transferring.

It’s a pretty convenient option, especially if the funds that you’re sending are needed urgently. Just take note of any important changes in exchange rates.

Economy Transfer

If your needs aren’t too urgent, then you can also choose the Economy Transfer option. With it, your recipient will receive the funds in 3 to 5 business days.

The advantage to choosing this option is that it’s much cheaper than Express Transfer. You can pay with any preferred bank account as well.

It costs approximately $3.99 only per transaction. Again, just be aware of any changes with the exchange rates.

For whichever options you pick, all four delivery options will be available. As mentioned, these are via bank deposit, cash pickup, mobile money, and home delivery.

Overview of Xoom


Xoom is among the most trusted digital money transfer companies today. It gained more recognition in recent years when it was bought by PayPal in 2015.

Like Remitly, Xoom has amassed loyal customers from all over the world despite being based in San Francisco, California, in the USA. The money transfer company has over 160 branches and partner outlets worldwide.

In line with its plenty of locations, Xoom has helped more than 1.5 million clients send money and pay bills across the globe.


  • Lets customers send money to over 160 different countries
  • Helpful customer service and customer support team
  • Various payment channels to choose from
  • No sending limit


  • No option for scheduling regular transfers
  • No way to send different currencies using one account
  • Not compatible with digital wallets

Standout Features of Xoom

Features & Benefits

Money Transfers

The main feature that Xoom offers is its money transfer services. You can send funds to anyone within your country or overseas.

Plus, since Xoom is powered by Paypal, it’s much easier to send money online. Anyone with a Paypal can also do transactions with anyone who is registered with Xoom.

Bills Payment and Mobile Top-Ups

But the best thing about Xoom is that it allows you to do more than just money transfers. You can use Xoom to pay bills online or top-up your mobile wallet, wherever you are in the world.

It’s an all-around fund transfer and remittance service.

Registration Process

Xoom lets its customers sign up online. They can either go to the Xoom website or download the Xoom mobile application.

Upon registration, Xoom will require the customer to indicate the total amount of funds to be sent along with the recipient’s payment details.

The Xoom transfer location and type of currency will also be required to complete the process.

Xoom Pricing

X Pricing

To calculate Xoom transfer rates, you’ll have to take into account your preferred payment method, the total amount to be sent, and the location of the recipient.

Exchange Rate Margin Fees

There is also a standard exchange rate margin fee of up to 2% for common currencies like US dollars, Great British pounds, Japanese yen, etc.

The Xoom exchange rate margin fee can reach up to more than 5% for less common currencies. These are called exotic currencies.

For Different Currencies

Different countries will naturally have different currencies, and so the exchange rates should also be considered.

For example, the Xoom fee when sending via bank deposit in the United States is $2.99.

The Xoom website also has its own calculator to help you compute how much your total will be, based on the country of your choice.

Extra Fees

Other fees you can expect to be charged are:

  • Transaction fees from third-party debit and credit card providers
  • Handling fees when sending via cash pick-up
  • A fixed service fee of $2.99 when using the Bill Pay service for paying your bills

Remitly vs Xoom: Comparison FAQs

Comparison FAQs

#1 Which one has lower transaction fees?

Remitly has lower transaction fees.


  • As mentioned earlier, Remitly bases its fees on the total transfer amount, the destination of your recipient, the transfer method, and the delivery method.
  • Since there are already fixed rates for the transfer methods (Express and Economy), then you’ll only really have to pay a total transfer fee that’s commensurate to the exact amount you’re sending.
  • Xoom does a similar scheme wherein it bases its transfer fees on the transfer amount and the destination of your recipient.
  • Xoom’s difference with Remitly is that it considers your payment method and the exchange rates of the particular currency you’re sending the funds with.
  • This means that there will be extra transfer fees that won’t be as fixed as that of Remitly. Each transaction will vary since Xoom outlets in different countries will have their own set of rates for transfers.

#2 Which one has more practical exchange rates?

Remitly has more practical exchange rates.


  • Remitly’s exchange rate margins can go anywhere from 0.4% to 3%. These are largely based on your chosen delivery method and currency.
  • Xoom also charges an exchange rate margin of 0.4% to 3%, except that it bases these on currency and the total amount you’re sending.
  • Thus, Xoom’s exchange rates and fees are more subjective. The higher your total amount, the higher the margins will be as well (while taking exchange rate into consideration).

#3 Which one is more accessible?

Xoom is more accessible.


  • In terms of total partner outlets and locations worldwide, Xoom has much more to show for. Xoom is available in 160 different countries.
  • In comparison, Remitly is only available in 17 countries. Though, you should also note that customers in those countries can send money to 57 countries.
  • Xoom’s bigger advantage is that it’s owned by Paypal. This makes it more accessible since anyone with a Paypal account in any country can also transact with a Xoom user.

#4 Which one has more flexible payment and transfer options?

Xoom has more flexible payment and transfer options.


  • Remitly accepts payment via bank transfer, debit card, and credit card only. The recipients can then claim the funds via bank account deposit, direct cash pick-up, mobile wallet, or home delivery.
  • Xoom stands out since it accepts payment via bank transfer, debit card, credit card, AND Paypal. Recipients can claim transfer amounts via bank deposit, direct pick-up, mobile wallet, home delivery, OR mobile wallet deposits.

#5 Which one offers faster service?

Tie. Both Remitly and Xoom offer fast service.


  • Remitly has an Express option that instantly sends your funds to the recipient. The Economy transfers option is a cheaper alternative that will take around 3 to 5 business days.
  • Xoom is also able to send instant international money transfers if you choose to do so. For a more affordable price, customers can make bank account deposits which will take around 2 to 4 business days.
  • It’s a tie since both Remitly and Xoom, as money transfer providers, are quick enough for urgent transactions.

Conclusion on Remitly vs Xoom


Our Verdict on Remitly vs Xoom: We prefer Remitly.

Though we can say that it’s a tie in terms of both Remitly and Xoom’s standout features, we still think that Remitly deserves the overall win.

When we put Remitly vs Xoom, Remitly emerges as the more practical choice. This is because:

  • Remitly has much lower transaction fees, and its transfer rates are fixed. You’ll know exactly how much you’ll need to pay when you’re using Remitly vs Xoom.
  • Remitly also doesn’t base its charges on the exchange rates or type of currency you’re dealing with.
  • Remitly has excellent customer support, based on many customer reviews that we’ve read online. It boasts of a satisfaction guarantee every time you avail of their services.
  • Remitly’s only disadvantage is that its international transfer services put a limit to the total amount you can send. Of course, you can always just split up the transactions since the fees are much more affordable anyway.

Now that you’ve reached the end of this Remitly vs Xoom comparison article, we hope that we’ve helped you learn more about both money service providers.

Remitly and Xoom are very much worthy of all the hype that they’re getting these days. And even though we prefer Remitly, when you really think about Remitly vs Xoom, they both win anyway because of the helpful service that they offer.

With the key benefits and features we’ve laid out for you, you can go ahead and see which money transfer service will work better for you and your loved ones.


About the author


Jack has worked on the video production, audio mastery, and physical coursework for over one-hundred popular online courses to date. He’s here to share his experiences with you, as well as show you what tools are worth your time, how to spot those that aren’t worth a penny, and above all else, how to keep yourself informed about how to navigate online course creation efficiently and effectively.