Remitly vs Xoom
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Author: April Summers
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The main difference between Remitly and Xoom is that Remitly has lower fees with the Economy transfer method while Xoom offers the same fees for all international transfers.
Remitly and Xoom are two leading names in the international transfers space, known for providing a quick and convenient means to send your money across borders.
In this Remitly vs Xoom comparison, we’ll be taking a look at everything from exchange rate margins to user reviews to help you decide which company is best suited to your needs.
A quick overview of Remitly and Xoom
Remitly is a Seattle-based money transfer company founded in 2011 and currently valued at more than $1.5 billion. Through its innovative money transfer technology, Remitly allows users to send remittances from 17 countries to 57 destinations globally. Over 3 million customers use the service to transfer money directly to bank accounts, cash pickup locations, mobile wallets, or have it home-delivered to their families and friends.
Another American-founded company, Xoom is a secure, fast and affordable digital money transfer service. Founded in 2001 in San Francisco, CA, Xoom was later acquired by PayPal in 2015 and now operates as a separate service under the PayPal family. The service enables more than 1.5 million customers to transfer funds, pay bills, and load prepaid mobile phones for their loved ones across the world.
Read on to find out the best brand for your needs if you are looking to transfer money to your country fast, cost-effectively, and with the best customer support.
Which brand has lower fees?
Transfer fees are a major consideration when choosing a remittance service. To help you get the best deal, here’s a breakdown of the Remitly vs Xoom fees you’ll find.
Remitly’s fee structure depends on the transfer destination, the size of the transfer, and the delivery method you choose. For instance, when sending money from the US to Argentina via the Economy option, you’ll pay a flat fee of $0.49. For the Express option, you’ll pay anything from $2.99 to $14.99.
✅ Verdict: Remitly wins
For the same transfer routes and amounts, Remitly charges much lower transfer fees than Xoom.
Which brand offers better exchange rates?
When making an international transfer involving currency conversion, both providers charge you a margin above the mid-market rate to convert your transfer. Here is how Remitly vs Xoom compares.
Remitly adds a margin of between 0.4% and 3.0% depending on the currency pair and delivery method. For a transfer from the US to India, the provider charges 0.87% and 0.42% in margins on the Express and Economy options respectively.
✅ Verdict: Remitly wins
Between Xoom vs Remitly, both brands are competitive at higher transfer amounts and there is not much in this one, Remitly has the best exchange rate pricing across the board.
Which brand covers more locations?
The number of destinations a brand supports is an important parameter when choosing a money transfer service. Between Remitly vs Xoom, both are growing pretty fast in coverage and cover a variety of countries around the world.
Remitly allows users to send from 17 countries, and users in these countries have the option of 57 different countries they can send money to.
✅ Verdict: Xoom wins
Xoom has the advantage of piggybacking on the PayPal payment ecosystem which puts it head and shoulders above Remitly in terms of coverage.
Which is faster?
Depending on the reason for your transfer, speed can be indispensable. Here is what to expect from Xoom vs Remitly when transferring money overseas.
Remitly’s Express delivery option can deliver your transfer in an hour or less. On the other hand, the Economy option takes 3-5 working days.
✅ Verdict: It's a tie
Between Xoom vs Remitly, both offer instant or near-instant transfer options. While Remitly gives a leeway of up to 5 working days on its Economy transfers, most payments hardly exceed 4 working days.
Which brand offers more transfer & payment options?
For convenience and ensuring your money arrives in a way that works for the beneficiary of your transfer, the payment and delivery options available with a provider are centrally important. Here are the Remitly vs Xoom options.
Remitly accepts debit card, credit card and bank transfer payment options. On the receiving end, the service supports bank deposit, cash pickup, mobile wallet deposit, and home delivery.
✅ Verdict: Xoom wins
Xoom has a slight advantage in that it allows paying using PayPal, a global platform with over 295 million customers.
What do users have to say about each brand?
Reading through reviews on platforms like Trustpilot, social media outlets, and social news aggregation sites, you can get a feel for how customers feel about the level of service they receive. Here are the commonly-voiced Remitly vs Xoom opinions.
Positive
Great exchange rates to popular corridors such as India.
Simple to use application interface
Fast delivery times for cash pickup and mobile wallet deposits
Negative
Occasional transfer delays especially on the Economy delivery option
Customer support tickets take a while to be resolved
✅ Verdict: Remitly wins - just
On Trustpilot, Remitly has close to 29,000 reviews with 90% of them rated 4 and 5 stars. Xoom has slightly over 21,000 reviews, so lags behind on this one.
What brand offers better ease of use, accessibility & security
Money transfer service customers prioritise the ease of use, security, and accessibility when choosing a brand. Here is the Xoom vs Remitly score in factors related to these crucial areas.
Languages available
The provider website is available in 11 languages: English, French, Spanish, Vietnamese, German, Polish, Romanian, Italian, Turkish, Chinese, and Korean.
Support
Users can access support 24/7 through live chat. Phone support is also available from 5:00am to 11:00pm Pacific Time (PT).
Mobile applications
The provider has an app available on the Play Store and App Store, which users can download for free and access their accounts.
Payment options
You can pay for your transfer using a debit card, credit card, or bank transfer.
Security options
Remitly servers are secured using two-factor authentication, Secure Socket Layer (SSL) technology and 256-bit encryption.
✅ Verdict: It's a tie
There is no way to pick out a definite winner as both Remitly and Xoom have covered their security, accessibility and ease-of-use grounds very well.
Additional features
Extra features are always welcome especially in money transfer services as they go a long way into adding value to both the sender and the beneficiary. Here is a look at the add-ons Remitly and Xoom offer.
Apart from its dedicated money transfer service, Remitly offers no extra features.
✅ Verdict: Xoom wins
Xoom adds more utility and variety with its talk time top-up and bill payment features.
Case study: Sending a variety of amounts
While you can get a feel for a service from the figures it gives in terms of exchange rate margins and fees, it is not until they are modelled into real-case scenarios that users begin to see how they play out. This section looks at typical transfers from the US to the Philippines using both Remitly and Xoom.
Sending $200
Remitly users can choose either the Express or Economy option both of which attract a 3.1% margin. On top, Express includes a $3.99 fee while Economy charges zero fees.
Sending $1,000
The provider still maintains the 3.1% margin but you won't be charged transfers fees irrespective of the delivery option.
Sending $20,000
Remitly supports up to $10,000 a day. If you want to transfer $20,000, you’ll have spread it over two or more days.
✅ Verdict: Remitly wins
Remitly wins on both transfer fees and exchange rate margin for all transfer amounts save for its $10,000 daily limit.
Bottom line - who is better?
Both brands are competitive and compare pretty well on many factors including speed, ease of use, security, transfer payment and payout options. Having said that, Remitly has a slight advantage in exchange rates and transfer fees thus saving you money on your transfers more often than not when compared to Xoom.
Domestic payments: Remitly only supports international payments.
Overseas payments: Remitly supports 17 send countries and 57 receive countries through cash pickup, bank deposit, mobile wallet deposit, and home delivery as payout methods.
Business payments: Remitly is an exclusive person to person payment service.
Daily spending: Remitly doesn’t support daily spending.
Large transactions: Remitly transactions are limited to $10,000 per day and $30,000 per month.
Smaller transactions: Remitly supports transfers from as low as $10, but the benefits of lower fees start kicking in from about $200.
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FAQs
What is better than Remitly?
If you are looking for a money transfer company that is better than Remitly, consider choosing Wise. They offer one of the most transparent money transfer services in the industry. Therefore, you can readily compare the fees, currency conversion rates, and transfer length before initiating the transaction.
Additionally, Wise consistently matches the mid-market rate for most currency pairs. This will save you significant amounts of money compared to banks. Finally, Wise provides fee-free balance transfers that are processed instantly in most cases. For more information, visit our comparison of Remitly and Wise.
Can you use more than one money transfer provider?
There is no limit on the number of money transfer companies you are allowed to use for sending funds abroad. However, we encourage you to sign up with several companies to check their user interfaces. This enables you to test various companies to see which works best for you.
The companies we recommend you try include TorFX, Currencies Direct, VertoFX, and WorldRemit. These are excellent options that bring unique features to the money transfer experience.
How fast is a Remitly money transfer?
Remitly transfer speeds depend on the type you choose during the transaction process. For example, you can select an Express transfer, which will cost you a premium fee. However, if speed is not an issue, you can choose the Economy option, which takes around 3-5 business days to process.
Alternatively, you can enjoy Wise’s fee-free balance transfers that take just a few moments to process. This is one of the best transfer methods on the internet, and you do not have to decide between faster transfers and paying no fee.
Are there different money transfer providers by country?
Yes, the choice of money transfer companies varies depending on where you are sending money from and to. The UK and the US have an excellent variety of money transfer companies to choose from. Note that transfer providers offer different limits, fees, rates, and transfer times based on where you are sending money.
WorldRemit is an example of a service that offers a far-reaching network of over 150 countries. This means you can use them for transferring funds almost anywhere in the world. Also, they have a mixture of variable rate and fixed fee transfer options. This enables you to get the best fee format for the amount you send. For instance, when sending a large amount of money, you want a low fixed fee that does not scale with the transfer size.
Do money transfer companies provide different deals?
The quality of the deals provided by money transfer companies differs based on the transfer you are making. Services like Xe and Wise match the mid-market rate for most currency pairs, which means you will not get a better rate elsewhere.
On the other hand, if you want to enjoy the best FX rates for large transfers, you will need to take advantage of business-orientated services like VertoFX. They provide stop contracts, which allow you to send money at a favorable FX rate until it reaches an unwanted rate.
How to use Remitly for money transfers?
To start the money transfer process with Remitly, you must open a new account. You can do this by clicking on the green “Join Now” button in the top right-hand corner of the screen. Next, you will be presented with a form where several fields must be entered.
Once the account is created, log in with the created credentials and navigate to the send money section. Choose the transfer method, express or economy speed, and enter recipient details, the amount you wish to send, and the currency. Once you have reviewed the details, confirm the transaction. You will be notified of the progress via a notification system.
TorFX vs Wise
If you do not have either one, here’s a quick overview of when it’s best to use TorFX or Wise:
Zelle vs Venmo
Zelle and Venmo are popular payment providers for customers based in America. Both companies exclusively handles domestic money transfers, a deal-breaker for anyone hoping to send money overseas. If international money transfers are on the agenda, you will need to look elsewhere as both Zelle and Venmo handle US-only transactions. Find out How to Transfer Money Within the USA.
Zelle vs PayPal
In a bid to find out which brand is the better option for sending international money transfers, we will be exploring each area of Zelle and PayPal’s financial services.
Zelle Vs Google Pay
It is worth mentioning early on in this comparison that both companies offer limited global coverage: Zelle only supports domestic transfers in the US, while Google Pay international transfers are restricted to India and Singapore only, although there is mention of future plans for expansion.
Zelle Vs Cash App
Both brands primarily focus on domestic money transfers, or in Cash App’s case, transfers between UK and US customers only.
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