Money Transfer

Remitly vs Xoom (2023)

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In today’s fast-paced and interconnected world, sending money across borders has become an essential part of many people’s lives.

Whether you need to support family members, pay for goods or services or handle international business transactions, choosing the right money transfer service is crucial. Two prominent players in this industry are Remitly and Xoom. Both platforms offer convenient and efficient ways to send money globally, but which one is better suited to your needs?

Remitly vs Xoom Comparison Chart

Product NameRemitlyXoom
Remitly vs XoomRemitly vs Xoom
PriceCheck PriceCheck Price
Supported Countries (Sending)More than 145More than 145
Supported Countries (Receiving)More than 20United States, United Kingdom, Canada, EEA
Payment OptionsBank transfer, debit or credit card Bank transfer, debit or credit card, PayPal balance
Payout OptionsCash pickup, bank and mobile money accountsCash pickup, bank and mobile money accounts, mobile top-up
Delivery and SpeedInstant or 3 to 5 daysInstant (depending on payment method) or 1 to 5 days
Exchange RateMarkup above mid-market exchange rateMarkup above mid-market exchange rate

Remitly Company Overview

Remitly vs Xoom

Founded in 2011, Remitly has swiftly become a leading digital remittance service provider. The Seattle-based company aims to simplify the process of sending money internationally, providing users with a secure and hassle-free experience.

Remitly offers its services in numerous countries, allowing users to send money to various destinations worldwide. To ensure the security of transactions, it employs industry-standard encryption and verification protocols. This gives users peace of mind knowing that their personal and financial information is protected. Additionally, it offers a money-back guarantee for qualifying transactions.

Xoom Company Overview

Remitly vs Xoom

When it comes to sending money across borders, Xoom has made its mark as a top contender in the industry. Founded in 2001 and acquired by PayPal in 2015, the company has become a popular choice for individuals seeking a fast and convenient way to transfer funds internationally.

One of the standout features of Xoom is its extensive reach. With the ability to send money to over 145 countries, it offers a wide coverage that caters to diverse transfer needs. Whether you’re sending money to family members, paying bills or making business transactions, it ensures that you can easily transfer funds to your desired destinations.

Exchange Rate

Both Remitly and Xoom place a markup above the mid-market exchange rate. This margin is more or less considered as an additional fee that isn’t explicitly stated, as it’s calculated as part of the total transfer value. In other words, it isn’t set apart and doesn’t tell the customer exactly how much it costs outright.

When comparing the two, it’s important to note that both services are competitive when it comes to higher transfer amounts. However, Remitly consistently stands out for its excellent exchange rate pricing across the board. This factor makes it a compelling choice for users seeking the best value for their money when transferring funds internationally.


Besides the markup applied to the exchange rate, there are other factors that come into play when determining the fees involved in any transfer.

In Remitly’s case, fees vary depending on the amount, destination and delivery option (e.g., Express and Economy). On the other hand, Xoom takes into account the amount, type of currency being sent and received, transaction type and payment method.

All in all, Remitly often outshines Xoom in this regard. Comparing their fees when transferring the same amount and on the same route, the former generally charges less, making it an attractive option for cost-conscious users.


As noted, Remitly has two delivery options. Firstly, Economy is its cheaper offering, as its name suggests. However, it can take about three to five business days for a transfer to reach its destination. In contrast, its Express option only needs minutes for funds to arrive, but it goes without saying that it charges higher fees.

Meanwhile, Xoom’s transfer speed varies based on the country of the recipient, as well as delivery and payment methods. For instance, cash pickups are near-instantaneous, whereas bank deposits can take up to four days. On average, the company’s transfer times can be estimated to be between one and five days.

As such, Remitly has the slight edge because of its Express delivery option, allowing for lightning-fast transfers internationally. However, the two are pretty much comparable when excluding any expedited services.

Global Reach

Both money transfer services can send funds to more than 145 countries. The main difference is Remitly can only send payments from over 20 countries. In comparison, Xoom can be used from the United States, United Kingdom and Canada, as well as the European Economic Area (EEA). For the uninitiated, the EEA consists of 30 countries, including Austria, Belgium, Germany, Italy, Spain, Norway and Portugal.

Though Remitly can also be used to send money to over 145 countries, Xoom has the upper hand in terms of coverage, as it can be used to send money from more countries.

Transfer and Payment Methods

When sending money, Remitly offers several options to facilitate your transfers. That includes a debit card, credit card and bank transfers. The same goes for Xoom, but aside from paying with a card or bank transfer, it also supports payments using your PayPal balance—or any other linked payment methods, for that matter. At the risk of pointing out the obvious, that adds a lot of convenience when transferring money.

As for receiving funds, it’s a similar story. Payout options of both services include cash pickup and bank and mobile money accounts. However, Xoom also supports mobile top-ups, giving it yet another advantage here.

Needless to say, Xoom sets itself apart because of its integration with PayPal, which caters to more than 400 million customers across the globe. Not only that, but it also includes phone top-ups, scoring another point in flexibility and convenience.

Why should you use Remitly?

Multiple delivery options: Remitly offers Economy and Express delivery options, allowing customers to save on fees and giving them the choice for instant transfers. This gives it the ability to accommodate different needs of its users.

Lower markup: Even though Remitly adds a margin above the mid-market exchange rate, the extra fee is relatively lower compared to its counterparts.

Why should you use Xoom?

PayPal support: Since PayPal acquired Xoom, the services of the online payment platform are tied into the latter. This paved the way for more convenient payment methods.

Wider coverage: Xoom allows for money to be sent from multiple countries, including the United States, United Kingdom, Canada and the EEA.


Remitly shines with its flexible delivery options, as well as its relatively low markup above the mid-market exchange rate. Also, its fees are typically more affordable, making it a cheaper alternative in the industry of money transfer services.

On the other hand, Xoom takes the cake for its extensive coverage, allowing users to send money to over 145 countries from Canada, the United Kingdom, the United States and countries in the EEA. What’s more, its integration with PayPal services makes for a convenient payment method.

At the end of the day, choosing between these two boils down to your needs and preferences. If Remitly’s services meet all your needs, then it’s the more cost-effective option here, thanks to its lower fees and markup. However, if you’re after a wider global reach, then Xoom might just be your better bet, especially if you use PayPal often.