Head-to-Head Money Transfer Comparison: Remitly vs. Xoom


For the last two decades, the demand for both business and personal money transfer services has increased. Sending money abroad used to be a hassle not to mention expensive. But thanks to the technological advancement brought by the overseas money transfer companies we can now send money with ease at the most affordable price.
Remitly and Xoom are two of the most popular money transfer service providers that allow you to send money to various countries all over the globe. If you are wondering which is better for you, then feel free to read through.

User Rating 9.2 9.4
Transfer Type
Coupon Yes Yes
Fee $3.99 $5 to $11 (depends on payment method)
Speed 2 to 4 days 1 to 3 days
Regular Payments
Mobile App
Min Transfer Amount

Money Transfer Fees:

Remitly charges transaction fees based on:
  • the amount of money you are sending,
  • the destination of the funds, and
  • whether you choose Express (4 hours) or Economy (3-5 days).

For instance, you want to send $1,000 from the USA to India. Remitly will not charge anything with this amount but sending less than $1,000 will be charged with $3.99.

If you use a credit card, you will be charged with an additional 3% fee.

Xoom’s fees vary based on:

  • your chosen payment method,
  • the amount you want to send,
  • to which currency, and
  • how the recipient will receive the money.

Let’s say you are in the USA about to send $1,000 to India. If you are paying Xoom via bank account and you want the funds to be sent to the recipient’s bank account, the fee will be zero.

On the other hand, if you are paying via bank account but you want the recipient to pick up cash, the fee is $4.99.

If you use your credit card your credit card company may charge a fee on top of Xoom’s fees.

Money transfer fees vary depending on various factors. As you can see, Remitly and Xoom have very different methods of charging their fees. If you don’t my waiting for a few days, Remitly’s Economy transfer is the most affordable option. Meanwhile, Xoom is more promising if you want to quickly send a large amount of money through a bank account.

Sending and receiving options

You can pay Remitly via:

  • Bank account
  • Credit card or debit card (Subject to additional fees)

Then your recipient will receive the funds through:

  • Bank transfer
  • Cash pick up
  • Home delivery
  • Mobile wallet

You can pay Xoom via:

  • Bank account
  • Credit card or debit card (Subject to additional fees)
  • PayPal account

Xoom is a service of PayPal but you can’t directly use your PayPal balance to send money.

What you can only do is sign up for a Xoom account using your PayPal account information. Then select any available PayPal-linked payment method before you check out.

Then your recipient will receive the funds through:

  • Bank transfer
  • Cash pick up

It is important to consider the most convenient way you can pay the funds and the best way for your recipient to receive the money without too much hassle.

Transfer limits

Money transfer companies limit the amount of money you can send within a period of time to comply with regulatory requirements. Remitly and Xoom are not exempted to this.

Remitly Transfer Limits
Time Period Level 1 Level 2 Level 3
24 hours $2,999 $6,000 $10,000
30 Days $10,000 $20,000 $30,000
Required information and documents
  • Your full name, residential address and date of birth.
  • The last 4 digits of your Social Security Number
  • Your full Social Security Number
  • Government issued photo ID
  • Details on your source of funds
  • Additional requested information on your use of our service
Xoom Transfer Limits (United States residents)
Time Period Level 1 Level 2 Level 3
24 hours $2,999 $10,000 $50,000
30 Days $6,000 $20,000 $60,000
180 Days $9,999 $30,000 $100,000
Required information and documents
  • Your basic personal information
  • Your full Social Security Number
  • Additional requested information via email
  • Bank statement or a pay stub
  • Driver’s license, Passport, or Green Card

Transfer time

Remitly Express transfers are available within four (4) banking hours while the Economy transfers take three (3) to five (5) days at a lower fee. Xoom can transfer your funds within minutes. However, if the amount is more than $10,000 and you have sent it after 4:00 PM PT, the bank processing will commence on the next business day.

Then, it will take around two (2) to three (3) days to settle the funds with your bank.

Take into consideration that while online money transfer companies like Remitly and Xoom are always in operational, banks have limited operating hours. Fund transfer processes during weekends and holidays may be delayed until the next banking day.

Exchange rates

A lot of people thought that the higher the exchange rate means a better deal when it comes to sending money. On the contrary, there is more to the exchange rates shown in the money transfer company’s websites and comparing sites.
As a smart consumer, you need to compare the exchange rates offered by the money transfer companies against the mid-market rate that is shown on Google or currency exchange platforms like XE.
The mid-market rate is the rate in which banks exchange or trade two currencies among themselves. This reflects the true value of the currency relative to the global market. Therefore, you must depend on its value.
So what should you do to know which offers a better exchange rate?
Consider these exchange rates on March 28, 2019

Mid-market rate: 1 USD = ₹69.00

Remitly’s rate: 1 USD = ₹68.14

The current margin is at 1.25%

Mid-market rate: $USD = ₹69.00

Xoom’s rate: 1 USD = ₹68.05

The current margin is at 1.38%

Simply find the margin between the mid-market exchange rate and the provider’s rate. The narrower the margin means a better value for the customer. Though the difference may be very slight in percentage, it will be translated into hundreds of dollars if you send a large amount of funds.
Money transfer companies make money when they adjust the currency.
Though they show exchange rates in their websites, you almost never get the same as the actual mid-market rate. The difference between the converted amount received by the recipient and the amount converted based on the mid-market value will become the profit of the provider.


Remitly and Xoom are at par when it comes to safety. They are both licensed to operate as money transfer companies in various countries. In addition, their websites have high levels of encryption to keep user data secure.

Remitly is registered with the U.S. Dept. of Treasury and licensed in several U.S. states as a money transmitter. It is also regulated by the Financial Conduct Authority (FCA) of the UK. Xoom is a service of PayPal, Inc. Therefore, all money transmission is provided by PayPal, Inc.and protected by its license. It is regulated directly by the federal government and other U.S. state governments and agencies.

Discounts and special offers

Remitly waives fees for the new customers and for a certain amount of transferred money abroad.
Xoom has a “Refer a Friend” program that gives you a chance to earn Amazon eGift cards.

Peoples’ rating (TrustPilot User Rating)

Remitly garnered a TrustScore of 9.2 from 14,147 reviews while Xoom got a TrustScore 9.4 from 16,489 reviews.

Overall Ease of Use

  • Remitly has dedicated websites in the U.S., Canada, and the UK.
  • The US website can be automatically translated into Spanish.
  • The cash pick up option is available in the Philippines and in parts of Central and South American countries.
  • Recipient can receive cash through bank transfer, cash pick up, mobile wallet and home delivery.
  • You can run the Remitly app on iOS and Android.
  • Remitly has a money back guarantee applicable to transfers that didn’t arrive on-time.
  • Xoom website is available in English, French, Portuguese, Spanish, Chinese, and Vietnamese.
  • You can only pay in USD.
  • If you are located in the US, you can pay bills from other countries.
  • You can use Xoom to top off your cellular phones load
  • Recipient can receive cash through bank transfer and cash pick up.
  • You can run the Xoom app on iOS and Android.
  • Xoom will refund your transaction in full if the recipient did not receive the funds.

Final Thoughts

Remitly and Xoom are evenly matched across various categories but the fact that Remitly has a better exchange rate gives it a step ahead.
Each money transfer company has its own advantages and limitations. You always have to compare your options when sending your money abroad. Consider various factors according to your priorities and preferences. After all, each dollar is hard earned and must be handled with utmost care whether it be for a personal emergency or for a business enterprise.

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