Remitly vs Xoom
Which money transfer service is better?
Author
Kenneth James
- Last updated: March 6, 2021
- By Kenneth James
Overview
Remitly and Xoom are two of the most popular and well-regarded money transfer services on the market today. Both platforms allow you to send money all around the world and come with many handy features and benefits. However, you might be wondering which service is better for your specific needs. Even though Remitly and Xoom are similar in many ways, the two platforms differ significantly in certain areas.
In this article, we will explain the different pros and cons of using the two platforms and provide you with an overview of their features and functionality. We will directly compare Remitly and Xoom in several categories, so you know which of the two services is the best option for you and your specific needs.
At a glance
Remitly
- Safety – Fully licensed and regulated by international authorities.
- Fees – Dependent on the delivery option for the transfer, the country combination, and the amount you are sending.
- Exchange Rate – Average rates, depending on the country combination and the amount you send.
- Speed – Either instant or within a couple of business days.
- Service – Exceptional customer service and online support materials.
Xoom
- Safety – Fully licensed and dependable service provider.
- Fees – The cost of a transfer depends on many factors, including the country combination, payment method, delivery option, currency, and the amount of the transaction.
- Exchange Rate – Adds a margin on top of the mid-market rate.
- Speed – Either instant or within a couple of business days.
- Service – Good customer service available both online and offline.
How to Get Started
You can use Remitly either through the platform’s website or by downloading the Remitly mobile app. Once you set up your account, the process is fairly simple and straightforward. You need to specify the amount of money you want to send, the recipient’s details, delivery option, and payment method. Before executing the transfer, do not forget to check the applicable fees and exchange rate margin.
Xoom can also be accessed through the website or via the proprietary mobile app. The process of setting up a transfer is the same as with Remitly. You have to specify the amount you want to send, enter the recipient’s information, and choose payment and delivery methods. Before confirming the transaction, you need to carefully review the details of the transfer and the applicable fees and exchange rates.
Both Remitly and Xoom are convenient and easy to use. The mobile apps are state-of-the-art and allow you to execute money transfers while on the go.
Key features of Remitly vs Xoom
Let’s take a look at some of the main features that both Remitly and Xoom offer.
Remitly
- Domestic Transfers – Remitly allows only international transfers
- International Transfers – You can send money from 17 countries and receive it in 57 countries. Delivery options include bank deposit, cash pickup, home delivery, and mobile wallet deposit
- Business Transfers – Remitly allows only person-to-person transfers and there are no business features
- Daily Spending – Remitly does not have daily spending options
- Small Transactions – You can send as little as $10 with Remitly. However, if you want to benefit from lower fees, you need to send at least $200 per transaction
- Large Transactions – Transaction limits at Remitly are $10,000 per day and $30,000 per month
Xoom
- Domestic Transfers – Xoom partnered up with Walmart and Ria to introduce US-only domestic transfers in 2019
- International Transfers – Xoom’s coverage includes more than 160 countries worldwide. Delivery methods include bank deposit, home delivery, cash pickup, mobile wallet deposit, mobile top-ups, and even utility bill payments
- Business Transfers – With Xoom, you can benefit from P2B (person-to-business) transfers
- Daily Spending – Xoom does not support daily spending features, even though it is owned by PayPal
- Small Transactions – You can send as little as $10 with Xoom. However, small transactions tend to result in higher fees and worse exchange rates
- Large Transactions – With Xoom, you can send up to $50,000 per day. However, each single transaction is limited to $10,000
Transfer Fees for Remitly vs Xoom
As we already mentioned, transaction fees at Remitly depend on the amount you send, the country combination, and the delivery method. Also, there are two options you can choose when making a transfer — Economy and Express. The latter is faster but will cost you more when it comes to fees. For example, if you send up to $499 from the USA to Mexico, the fee will be $3.99. If, however, you choose to send $500 or more with the same country combination, you will not pay a fee. Sending from the USA to the Philippines with the Economy option will not add to the fee — however, if you want to go with Express, you will have to pay an additional $3.99.
Transfer fees at Xoom vary depending on the payment and delivery methods, country combination, currency, and the amount you send. If you send $500 from the USA to Mexico it will cost you $12.99 if you pay with a debit card. However, if you send $5,000, the fee will increase to $75.99.
Overall, both Remitly and Xoom have fees that vary greatly. However, Remitly generally offers lower fees for popular country combinations, especially if you do not need the money to arrive instantaneously. Xoom, on the other hand, can be considered the better option if you want to send money fast and use a bank account as a payment method.
Case Study: Sending Money from the USA to the Philippines with Remitly vs Xoom
In order to better illustrate the differences between Remitly and Xoom when it comes to transfer fees, we should take a look at a specific example. Imagine we want to send some money from the USA to the Philippines. Let’s see how both Remitly and Xoom handle such a transaction.
Remitly
- Transferring $200 – You can use either the Economy or Express option, both of which come with a 3.1% above-market exchange rate. While going for Economy will result in no fees at all, the Express option will charge you an extra $3.99 for the transfer.
- Transferring $1,000 – While the exchange rate margin remains the same, if you send such a large amount of money, you will not be charged any fees, even for the Express option.
- Transferring $20,000 – The exchange rate margin remains the same and you will not pay any transfer fees. However, Remitly has a transaction limit of $10,000 per day. This means that a transfer of $20,000 will have to be spread across at least two days.
Xoom
- Transferring $200 – If you use your bank account as a payment option and choose a bank deposit as a delivery method, you will not be charged any fees whatsoever. For any other combination, the fee will vary between $4.99 and $5.99. Also, currency exchange will be made at 3.56% above the mid-market rates.
- Transferring $1,000 – While the exchange rate margin remains the same, the fees for such a large transaction can go up to $7.99. Once again, you will not be charged any fees if you pay via bank account and choose a bank deposit as the delivery method.
- Transferring $20,000 – Exchange rate margins and fees remain the same. However, even though the daily transfer limit at Xoom is $50,000, you cannot send more than $10,000 per transaction. This means that you will have to make at least two transactions and pay all applicable fees twice.
Exchange Rates - Remitly vs Xoom
Both Remitly and Xoom do not work at mid-market exchange rates. Depending on the country combination and other factors, both platforms apply a 1%–3% margin on top of the mid-market rate for the transaction. Essentially, this is another fee that the companies charge you, in addition to the usual costs for the transfer.
However, we found that Remitly’s exchange rates are slightly better than what Xoom offers on average. On top of that, Remitly often offers even better exchange rates for the first few transactions of every new user. Overall, while the rates are not so different between the two platforms, Remitly lets more of your money reach the intended recipient.
Transfer Speed - Remitly vs Xoom
When transferring money with Remitly, you get a choice of two options — Economy and Express. The Economy option requires you to pay with a bank account and usually takes 3–5 business days to clear. The Express option usually clears in mere minutes — however, you will have to pay a fee. Keep in mind that the Express fee can be waived if you send large amounts of money at once.
With Xoom, transfer speed depends on the country combination, payment method, and delivery option for the transaction. The time for a Xoom transaction to clear ranges from a few minutes to a couple of business days.
Both platforms are extremely similar when it comes to transfer speed, so we cannot declare a winner here.
Which Is Better — Remitly or Xoom?
Even though both platforms are similar in many categories, Remitly beats Xoom when it comes to saving you money. It offers lower fees and slightly better exchange rates, making sure more of your money reaches its intended recipient. It all goes down to your specific needs and the country combinations you are most likely to use. Make sure you check out the applicable fees and exchange rates for your country combination before committing to one of those money transfer services.
- Safety — Both Remitly and Xoom are reliable and safe to use
- Fees — Both platforms have varied fees that depend on many different factors
- Exchange Rate — Remitly offers better exchange rates than Xoom
- Speed — The two platforms have similar transfer speed, and both offer the option to transfer money within minutes
- Service — Remitly’s customer service is superior to that of Xoom
Is Sending Money with Remitly and Xoom Safe?
Remitly and Xoom are fully-regulated money transfer services that uphold all standards when it comes to safety and data protection. Keep in mind that there are scammers that might try to trick you into sending them money through the platforms. Always be vigilant and double-check any incoming requests. When it comes to the transactions themselves, both Remitly and Xoom use the highest level of encryption to ensure that your money is safe.
Is Remitly Better Than Xoom?
In case you need to send money urgently, Xoom is a viable option, even though they have lower transfer limits and worse exchange rates. Remitly, on the other hand, is a better option in almost any other scenario. Its coverage is great and it is generally cheaper to use. On top of that, you get mid-market exchange rates, which ensures that all money you send reaches the recipient.
How Much Money Can I Send With Remitly?
Transfer limits at Remitly depend on how much personal information you have submitted and how long have you used the platform. Initially, you can send up to $2,999. After providing documents like a photo ID or a Social Security number, your limits will increase. If you submit all required identification, you will be able to send up to $60,000 after 180 days have passed since you created your account.
How Much Money Can I Send With Xoom?
Again, transfer limits at Xoom depend on the verification you have submitted and the time since you have opened your account. As soon as you register, you can send up to $2,999. The maximum limit is $100,000 and it becomes available after you have provided all needed documents and 180 days have passed since you created your Xoom account.
Which Is Better, Remitly or WorldRemit?
Both Remitly and WorldRemit are among the best options when it comes to sending small amounts of money. When it comes to delivery methods, Remitly offers home deliveries, while WorldRemit has useful mobile top-ups. Overall, which one is better depends on your personal needs. However, we need to point out that WorldRemit has slightly lower fees and a business platform, which can make it the preferable option for some.
Is Remitly Better Than TransferWise?
In our opinion, TransferWise is the overall better platform of the two. Remitly has the edge when it comes to delivery methods since it supports cash pickups. However, TransferWise has lower fees and operates at true mid-market exchange rates.
