Remitly vs Xoom: Quick Overview
Both Remitly and Xoom target similar demographics: immigrants sending money back home to developing countries (corridors like US-to-Mexico, US-to-India, or US-to-Philippines). Both offer robust cash pickup options and fast digital delivery.
Remitly Overview
Remitly is built specifically for global remittances. It offers two pricing tiers: a cheaper, slower 'Economy' option (via bank account) and a faster 'Express' option (via debit card). They often offer aggressive promotional exchange rates for new users.
Xoom Overview
Xoom is owned by PayPal, meaning you can seamlessly fund transfers using your PayPal balance. Xoom focuses heavily on speed and convenience (including paying foreign utility bills), but they charge a significant markup on exchange rates.
Quick Verdict
For the vast majority of cash pickup and direct bank transfers, Remitly is the better choice due to its tiered pricing structure and generally better exchange rates. Xoom is only recommended if you need to use your PayPal balance or pay a foreign utility bill.
Qualitative Breakdown
| Feature | Remitly | Xoom (PayPal) |
|---|---|---|
| Exchange Rate Model | Retail rate (Variable markup) | Retail rate (High markup) |
| Upfront Fees | Tiered (Economy is cheap/free) | Fixed + Variable fees |
| Cash Pickup | Yes, massive global network | Yes, strong global network |
| Home Delivery | Yes (in select countries) | Yes (in select countries) |
| Fund with PayPal | No | Yes |
| Pay International Bills | No | Yes |
| Transfer Speed | Minutes (Express) / 3-5 days (Economy) | Mostly instant (Minutes) |
Fees & Hidden Markups
Both Remitly and Xoom make money by charging an upfront fee AND adding a markup to the exchange rate. Neither uses the true mid-market rate.
Remitly: The Two-Tier System
Remitly offers flexibility. Their "Economy" option (funded via your bank account) usually features very low or zero upfront fees, though it takes a few days. Their "Express" option (funded via debit card) charges a higher upfront fee but delivers instantly. Their exchange rate markup varies by corridor, but is generally competitive for major remittance routes (like US to India or Mexico).
Xoom: Speed at a Premium
Xoom is famously expensive. They charge transaction fees based on how you fund the transfer, the destination country, and the payout method. On top of this, their exchange rate markup is often between 1.5% and 3% (or higher in some corridors). The convenience of PayPal integration comes at a steep premium.
Who Should Choose Remitly?
- • Senders who want the cheapest cash pickup option.
- • Users who are willing to wait 3-5 days to save money (Economy mode).
- • New users taking advantage of Remitly's aggressive sign-up promotional exchange rates.
Who Should Choose Xoom?
- • Senders who specifically want to fund transfers using their PayPal balance.
- • Users who need to pay international utility bills or reload mobile phones directly.
- • Those prioritizing absolute speed and convenience over saving money.