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Remitly vs Xoom

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Which Is Better, Xoom or Remitly?

Mar 22, 2022
Affiliate disclosure

Remitly and Xoom are two top-notch money transfer platforms well known for their wide coverage and cash pay-out services. —

Remitly Rankings

On the one hand, there's Remitly, a global specialist in cash-based remittances and bank transfers across the globe that offers impressive reach and good fees and exchange rates. From July 2021 to July 2022, Remitly was the overall cheapest service for transfers from the United States to India, Mexico, and the Philippines according to Monito's comparison engine (Canada to India transfers too).

Xoom by PayPal Rankings

On the other hand, PayPal-backed Xoom is another reliable option to consider, with a vast reach and millions of active customers (although its fees and exchange rate are more expensive than Remitly's). Xoom never ranked in the top 5 on Monito for transfers from the US to India, Mexico, or the Philippines from July 2021 to July 2022.

While in most cases we recommend Remitly over Xoom, in the end, both will offer you excellent service, and whether Remitly or Xoom is ultimately right for you depends on several factors. In this side-by-side comparison, we explore a few of those factors to help you make the best decision and save money in the process.

Remitly
8.9
Xoom
8.6

Trust & Credibility

Background check

Background check
Background check

Remitly is registered and regulated as a Money Services Business with the U.S. Department of the Treasury and by the relevant authorities in the countries in which it operates.

Xoom is fully licensed and authorized by the relevant authorities in the countries in which it operates.

Security & reliability

Security & reliability
Security & reliability

Remitly’s website is fully-secured and makes use of top-notch security protocols, including segregated user accounts and HTTPS.

Xoom’s platform is fully secured, making use of top-notch security protocols, such as segregated user accounts and HTTPS.

Company size

Company size
Company size

Founded in 2011, Remitly is a well-established money transfer provider: it serves over 3 million customers, has transferred $5 billion in the past year alone, and now has a thousand employees.

Founded in 2001, Xoom is a well-established international money transfer provider that transferred approximately $10 billion for two million customers in the last year. Xoom has 320 employees.

Transparent pricing

Transparent pricing
Transparent pricing

Remitly is not transparent about its pricing: 35% of fees are hidden in the exchange rate margin.

Xoom is only partially transparent in disclosing its fees: approximately 74% of its fees are hidden in the exchange rate margin.

Remitly vs Xoom: Trust & Credibility

Remitly and Xoom are safe and secure money transfer platforms that you can trust to get your money from A to B. We don't see much difference in this section and are confident that both will deliver, and even exceed, on their promises.

Is Remitly Safer Than Xoom?

Xoom is a PayPal-backed money transfer platform that supports transfers to an impressive number of countries and currencies. Xoom has around five million active users and has been operating since 2001, giving it a long service track record. On the other, there's Remitly, a licensed money transmitter in the US that's authorized to operate in all other countries in which it does business.

Xoom has been in the business for over 20 years, while Remitly has only been around for 10. Remitly moves over $5 billion across the globe for more than 3 million customers annually, while Xoom transfers some $10 billion for two million customers every year.

Remitly

Xoom

🖊 Licensing

  • FCA (UK)
  • CBI (EU/EEA)
  • FinCEN (US)
  • … and 3 others
  • Subsidiary of PayPal

📃 Founded

2011

2001

🔒 Segregated Accounts

💰 Profitable

📈 Publicly Listed

Try RemitlyTry Xoom

Last updated: 21/3/2022

Remitly
7.5
Xoom
7.0

Service & Quality

Opening an account

Opening an account
Opening an account

Opening an account with Remitly is relatively easy to do, though it may take some time to do.

Opening an account with Xoom is relatively easy to do, though it may be a lengthy experience.

Making a transfer

Making a transfer
Making a transfer

Transferring money with Remitly is a straightforward process, made all the more convenient by the variety of pay-in and pay-out options it offers.

Transferring money with Xoom is fast and easy to do.

Contacting support

Contacting support
Contacting support

Remitly offers its users extensive customer service, with live chat and phone support that are available 24/7.

Though it does not offer chat support, Xoom offers an extensive FAQ section and its customer service is easy to get in touch with, either by phone or email.

Remitly vs Xoom: Service Quality

Whether you choose Remitly or Xoom, you can rest assured that you'll be getting high-quality service. Your money will be delivered smoothly, the transfer process will be hassle-free, and you can sign up with either platform in just a few clicks.

Is Remitly Better Than Xoom?

However, when it comes to the overall transfer experience, Remitly has a slight edge over Xoom. For example, while our analysis found it to be slightly quicker to send money with Xoom than with Remitly (as there were fewer steps to the process), we found Remitly's customer support to be significantly better than Xoom's via its in-app live chat feature (something which Xoom is missing).

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Remitly vs Xoom: Where Are They Available?

Take note that Remitly and Xoom aren't available everywhere, nor do they have the same reach. Take a look at the two services' availability below:

  • Remitly: From Europe, US, Canada, Singapore, and Australia to around 47 currencies on every continent.
  • Xoom: Available where PayPal is available to more than 150 countries and territories worldwide.

Remitly

Xoom

📥 Pay-In

  • Bank transfer
  • Debit/credit card
  • Bank transfer
  • Debit/credit card
  • PayPal

📤 Pay-Out

  • Bank deposit
  • Cash pick-up
  • Door-to-door delivery
  • Mobile wallet deposit
  • Bank deposit
  • Cash pick-up
  • Door-to-door delivery

⬇ Min. Transfer

$1.00

$10.00

⬆ Max. Transfer

$20,000

  • USD: $6,000 / month
  • CAD: $5,000 / month
  • EUR: €3,000 / month

💱 Currencies

47

35

💬 Languages

English, French, Spanish, Polish, Vietnamese, German, Romanian, Italian, Turkish

English, Spanish, French, German, Hungarian, Italian, Korean, Polish, Portuguese, Romanian, Russian, Chinese, Vietnamese, Dutch

Try RemitlyTry Xoom

Last updated: 21/3/2022

Remitly
9.8
Xoom
1.2

Fees & Exchange Rates

Transfers to a bank account

Transfers to a bank account
Transfers to a bank account

Remitly was the cheapest option in a majority (50.5%) of available Monito searches for bank transfers over the first three months of 2022.

Xoom was the cheapest option in only 1.40% and competitive in another 2% of relevant Monito searches for bank transfers over the first three months of 2021.

Transfers to cash pick-up

Transfers to cash pick-up
Transfers to cash pick-up

Remitly was the cheapest option in an overwhelming 75% of available Monito searches for cash pick-up transfers over the first three months of 2022.

Xoom was the cheapest option in 5% and competitive in another 9% of relevant Monito searches for cash pickup transfers over the first three months of 2021.

Remitly vs Xoom: Fees & Exchange Rates

When it comes to costs, Remitly is almost always the better choice than Xoom.

Remitly and Xoom Exchange Rates

This is because Remitly charges a meager margin on the mid-market exchange rate (i.e. an exchange rate only slightly worse than the one you see on Google) and makes most of its money by adding a small fee onto every transfer. On the other hand, Xoom charges a standard exchange rate margin and a rather hefty variable fee in addition. As a result, this means that Xoom is almost always the more expensive option — whether you're looking to make a bank-to-bank transfer or a cash pickup transfer.

Remitly vs Xoom: The Costs Combined

For example, suppose you were sending a $500 transfer to a friend in Mexico from the USA. At the time of writing, a direct bank payment via Remitly would cost $3.60 in total fees, while a bank transfer with Xoom would cost $3.99 plus an exchange rate that's 2.41% worse than the mid‑market rate. In the end, your friend would receive 10,005 Mexican pesos if the transfer were made with Remitly and 9,820 Mexican pesos with Xoom. That's a nearly 2% difference in the amount received!

Take a look at the table below to get a better picture of how this works:

Remitly

Xoom

💱 Exchange Rate Margin

1%-2%

0.4%-4%

💸 Additional Fees

2%-3%

2.9%-3.3%

🏦 % Cheapest¹ (Bank)

6%

1.4%

🏦 % Competitive² (Bank)

44%

2%

💵 % Cheapest (Cash)

80%

5%

💵 % Competitive (Cash)

37%

9%

Try RemitlyTry Xoom

Last updated: 21/3/2022
¹ How often the provider was the cheapest on Monito (Apr-Jun 2021).
² How often the provider's fees were below 1.5% for a $1,000 transfer on Monito (Apr-Jun 2021).

However, while Remitly is usually cheaper than Xoom, we still recommend comparing money transfer services on Monito. This way, you'll be able to find the provider that gives you the best rate for your transfer in real-time.

You can compare below — it's free, and it only takes a minute:

Xoom vs Remitly: Find the Cheapest Money Transfer

Remitly
9.1
Xoom
8.9

Customer Satisfaction

Customer review score

Customer review score
Customer review score

Remitly consistently garners praise from its customers, earning an average TrustPilot rating of 4.1/5 stars.

Xoom is highly rated by its customers, earning a 4.1/5 star rating on Trustpilot.

Number of positive reviews

Number of positive reviews
Number of positive reviews

Remitly has earned over 35 thousand 4 and 5-star reviews on TrustPilot, making it much loved by its customers.

Xoom has around 20 thousand 4- and 5-star reviews on Trustpilot, making it much loved by users.

Remitly vs Xoom: Customer Satisfaction

Based on tens of thousands of combined reviews on Trustpilot, it's pretty clear that Remitly and Xoom both impress their users.

Remitly and Xoom's Customer Service

Xoom is very popular with users, earning a 4.1- out of five-star rating on Trustpilot with many positive reviews. More impressive still is Remitly, which has received even more positive reviews on Trustpilot, with an average rating of 4.5 out of five stars (from around 50% more total reviews).

While we think Remitly slightly outdoes Xoom in this area, it's fair to say that both platforms deliver on their promises and satisfy their users.

Remitly vs Xoom

In almost all cases, we recommend Remitly over Xoom, particularly for small- to medium-sized bank transfers (up to $10,000) destined for international bank accounts because Remitly is exceptionally well-priced for these transfers. As we've seen, Remitly is the cheaper way to send money in general, although it's not necessarily much faster or more straightforward to use than Xoom. (If you'd like to learn more, we recommend checking out our in-depth Remitly review and Xoom review.)

We only recommend using Xoom over Remitly if you want to send money to a location that Remitly doesn't support. However, Xoom is seldom the only option on Monito's money transfer comparison results even in these cases. For this reason, if you're sending cash, we recommend comparing providers instead and selecting the 'Cash pick-up' tab on the Monito results page.

Xoom to the Philippines
August 9, 2022 - by Byron Mühlberg
Sending Money To India With Remitly
August 8, 2022 - by Byron Mühlberg
Xoom Mexico to US
July 21, 2022 - by Byron Mühlberg
Xoom Transfers India to US
July 21, 2022 - by Byron Mühlberg
Xoom Transfers to Mexico
July 20, 2022 - by Byron Mühlberg
Xoom Competitors
July 19, 2022
Wise vs Xoom
March 18, 2022 - by François Briod

Why Trust Monito?

You’re probably all too familiar with the often outrageous cost of sending money abroad. After facing this frustration themselves back in 2013, co-founders François, Laurent, and Pascal launched a real-time comparison engine to compare the best money transfer services across the globe. Today, Monito’s award-winning comparisons, reviews, and guides are trusted by around 8 million people each year and our recommendations are backed by millions of pricing data points and dozens of expert tests — all allowing you to make the savviest decisions with confidence.

Learn More About Monito
  • Monito is trusted by 15+ million users across the globe.

  • Monito's experts spend hours researching and testing services so that you don't have to.

  • Our recommendations are always unbiased and independent.

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Affiliate Disclosure
Instead of banner ads and paywalls, Monito makes money through affiliate links to the various payment service providers featured on our website. While we work hard to scout the market for the best deals, we're unable to consider every possible product available to you. Our extensive range of trusted affiliate partners enables us to make detailed, unbiased, and solution-driven recommendations for all types of consumer questions and problems. This allows us to match our users with the right providers to suit their needs and, in doing so, match our providers with new customers, creating a win-win for everybody involved. However, while some links on Monito may indeed earn us a commission, this fact never impacts the independence and integrity of our opinions, recommendations, and evaluations.