Last Updated on October, 2024
When choosing international money transfer services, it’s important to understand how platforms like Remitly and Xoom differ.
Remitly is popular for its lower transaction fees, better exchange rates, and commitment to supporting immigrant communities, making it an economical choice for many.
On the other hand, Xoom, backed by PayPal, stands out for its speed, extensive reach, and PayPal integration, providing a quick and secure transfer option.
This article compares key features such as fees, transfer speed, and customer satisfaction, helping you decide which service best meets your needs.
Quick Summary
Remitly typically offers lower fees and better exchange rates compared to Xoom, making it a more affordable option for sending money internationally.
Xoom delivers transfers faster, often within minutes, and supports more countries and payout methods, partly due to its integration with PayPal.
Remitly is praised for its user-friendly app, better customer service, and focus on supporting immigrant communities, while Xoom has a broader reach but receives mixed reviews due to issues with customer service and verification delays.
Contents
- Remitly Vs Xoom (Money Transfer Services)
- Differences Between Remitly and Xoom
- Features: Remitly Vs Xoom
- Available Countries
- Exchange Rates & Fees: Remitly Vs Xoom
- Money Transfer Limits: Remitly Vs Xoom
- Money Transfer Speed: Remitly Vs Xoom
- Payment Method Accepted: Remitly Vs Xoom
- Safety: Remitly Vs Xoom
- Customer Reviews: Remitly Vs Xoom
- Conclusion
- FAQs
Remitly Vs Xoom (Money Transfer Services)
About Remitly
Remitly helps immigrants transfer money to their families back home quickly and safely. They understand the sacrifices immigrants make and aim to stretch their hard-earned money further.
Remitly also supports immigrant communities by investing in organizations that improve economic and social inclusion. The service is known for its reliability and speed, making it a trusted choice for many users worldwide.
If you want to learn more about Remitly, checkout this ultimate guide.
About Xoom
Xoom is also a money transfer company that allows you to transfer money, reload phones, and pay bills for people around the world quickly and securely.
You can use your bank account, debit card, or credit card payments—Xoom partners with trusted companies globally to ensure safe and convenient international transfers.
Recipients can receive money through various methods like direct deposit, cash pickup, or even home delivery, depending on the country. Being part of PayPal, Xoom combines ease of use with top-notch security.
If you want to learn more about Xoom, checkout this ultimate guide.
Differences Between Remitly and Xoom
Remitly and Xoom are both services for sending money abroad, but they have some differences:
In short, Remitly is often cheaper and has good service, while Xoom is faster and integrates well with PayPal.
Features: Remitly Vs Xoom
When I analyzed the features of Remitly Vs Xoom, I understood some of the features don’t look alike. Check out the following features for a better idea.
Both are reliable, but Remitly is usually cheaper, while Xoom offers more service options.
Available Countries
GUESS WHAT? Remitly lets you transfer money from 28 countries to 170 different countries around the world. This means there are 4760 possible combinations for sending and receiving money.
You can transfer money with Remitly from the following countries:
To see if you can send money online to your specific country, check the Remitly website.
With Xoom, you can send money from 40 countries. Here are the countries:
Xoom allows you to send money to 161 countries around the world. This covers almost all major countries where people send money internationally.
Exchange Rates & Fees: Remitly Vs Xoom
Check out the following table. The information provided reflects the exchange rate(s), transfer fees, and delivery times offered by Remitly for various currencies.
Fees
Remitly generally offers lower fees, especially for popular remittance corridors. For instance, transferring money to Mexico can cost as little as $3.99 for amounts under $500 and is FREE for amounts above that if you opt for the Economy payments.
In contrast, Xoom can be more expensive, with fees ranging from $12.99 to $151.49 depending on the international transfer amount and preferred payment method.
However, if you need to send money quickly and are using a bank account, Xoom can sometimes be more cost-effective.
Exchange Rates
Remitly typically offers better exchange rates than Xoom. For example, when sending money to Thailand, Remitly’s markup on the mid-market rate is about 1.72%, compared to Xoom’s 4.02%.
This means that with Remitly, more of your money reaches the recipient.
Both money transfer providers add a markup to the exchange rate, so it’s crucial to compare live rates before making an international transfer.
Money Transfer Limits: Remitly Vs Xoom
A money transfer limit, also called a sending limit, is the maximum amount you can send in one transaction. Companies like Remitly and Xoom have different limits for various countries.
It’s important to consider the period for these limits. Both Remitly and Xoom have limits for 24 hours, 30 days, and 180 days. Both companies also classify customers into different tiers or levels. Remitly uses the term ‘Tier’, and Xoom uses ‘Level.’ The higher your tier or level, the more money you can send.
To move up to a higher tier or level, you need to meet certain qualifications. Both companies provide clear information on how to upgrade, and you can apply to move to a higher tier.
Money Transfer Speed: Remitly Vs Xoom
Several factors affect how quickly your money transfer is completed. These include the countries and currencies involved, the amount sent, and the payment and delivery methods used.
Bank and local holidays can cause delays in bank transfers and cash collection if agent offices are closed. Larger, international banks usually process transactions faster than smaller, local banks and credit unions.
How Fast Does Remitly Send Money?
Remitly offers two particular transfer speeds: Economy and Express Payments. Sending money from Canada (and in other countries where Remitly is available) with Remitly gives you the choice between these two options.
How Fast Does Xoom Send Money?
Most Xoom transfers are completed in minutes, though some may take a few business days. They generally deliver money quickly to many countries.
In short, for urgent transfers, use Remitly’s Express or Xoom. However, Remitly exchange rates are much better and if time allows, use Remitly’s Economy option.
Payment Method Accepted: Remitly Vs Xoom
Sending money abroad requires choosing a payment method, too. Here’s a comparison of payment methods accepted by Remitly and Xoom.
Remitly’s Payment Methods
Remitly offers several ways to pay for your transfer:
Using local payment methods can lower fees and leverage trusted networks, and Remitly supports various local options.
Xoom’s Payment Methods
Xoom accepts payments via:
Remitly supports numerous local payment methods, while Xoom offers PayPal, which is widely available. Both money transfer companies provide diverse payment options to meet your needs.
Safety: Remitly Vs Xoom
Remitly and Xoom are both serious about keeping your money safe.
Here’s what they do:
For example:
Xoom
For regulations:
Both Remitly and Xoom are safe to use. They work hard to protect your money and info. Remember to always keep your account secure.
Customer Reviews: Remitly Vs Xoom
Remitly
Remitly has a TrustScore of 4.5 out of 5 on Trustpilot, based on 47,839 reviews. Most users praise its speed, low fees, and reliability, while some criticize its exchange rate(s) and occasional requests for additional verification.
Overall, it is well-regarded for international money transfers.
Here are some random reviews I came across:
- Customer Review 01:
i use remitly for international transfers. it’s a very good service. They only charge me 2.99 per transaction to express the payment and for anyone ive done a transfer to it shows within two hours max. Other routes to do transfers internationally take far longer and far more expensive.
This user says he uses Remitly for fast and affordable international money transfers. It costs $2.99 per transaction, and the money arrives within two hours. Although the exchange rate margin isn’t great, it’s still faster and cheaper than other options.
- Customer Review 02:
Personally am happy, coz it reaches quickly and safely, didn’t have to wait for days, further they send you receipt and inform by email during the process.
He is happy with Remitly because the money arrives quickly and safely. He doesn’t have to wait for days, and they send a receipt and email updates during the money transfer process.
- Customer Review 03:
Stay away from this company. They will ask you to provide to a foreign bank personal information to complete transaction. This smells like a SCAM to me. Why does a foreign bank needs my personal information like ID. proof of income, etc. BEWARE!!
Adalberto Lopez says to stay away from this company. He says they asked for personal information, like ID and proof of income, to complete transactions with foreign banks. So, the user says this seems like a scam.
Xoom
Xoom is one of the most trusted financial services that has an overall TrustScore of 1.9 out of 5 on Trustpilot, with 22,685 reviews (mostly negative).
The ratings show that 85% of users gave it a 5-star rating. Still, there is significant dissatisfaction, as reflected in numerous 1-star reviews highlighting issues with lost transfers, poor customer service, and verification delays. Overall, the service is rated as ‘Poor’.
Check out the following reviews for a better understanding:
- Customer Review 01:
A great service for quick funds transfer I came across! When no payment method worked Xoom helped me to quickly get funds into my account within a few minutes.
This person found Xoom really helpful when they needed help to transfer money using other methods. Xoom got the money into their account in just a few minutes.
- Customer Review 02:
Sent a Mobile top up that was never received. When i contacted them, they advised that it was sent. When i pushed them further, they just redirected me to the service provider. I will never use this service again.
This user says he sent money for a mobile top-up, but it didn’t arrive. When asked, the sender didn’t help; they just said to contact the service provider. He says he won’t use the service again.
- Customer Review 03:
Similar to others. Foreign transfer for £3K failed and they cant find the money and say its my fault! Lots of random emails about things that are incorrect (compliance reviews, incorrect bank details) without any data or logic behind them.
Will Crick says his £3,000 transfer failed, and the bank can’t find the money, blaming the user. The user is confused by random emails about compliance issues and wrong bank details. They urgently need the money and advise avoiding this bank.
Other platforms we’ve compared Xoom and Remitly with:
Conclusion
Efficient and secure money transfer services are essential.
Whether you prioritize affordability with Remitly or speed and convenience with Xoom, both platforms empower individuals and families globally.
By evaluating their features, you can ensure seamless financial transactions, fostering economic empowerment and social inclusion worldwide.
FAQs
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