Remitly and Xoom are two of the most popular apps for sending money to family abroad, and they overlap heavily — both do cash pickup, mobile wallets, and bank deposits in minutes. So which should you use in 2026? The short version: Remitly usually costs less, while Xoom wins on PayPal convenience. Here is the full comparison.
Remitly usually wins on price — lower transfer fees, free first transfers, and slightly better exchange-rate margins across most corridors. Xoom wins on PayPal convenience: it is PayPal’s transfer arm, so you can send from a PayPal balance. Both offer fast cash pickup and mobile-money payouts. For the lowest cost, start with Remitly; for PayPal integration, Xoom.
Cost: Remitly edges ahead
On the metric that matters most, Remitly generally comes out ahead. It typically charges lower transfer fees — often free on your first transfer, and around $3.99 for sends under $1,000 — while Xoom’s fees vary widely by payment method. Both services add an exchange-rate markup in the same broad range of 0.4% to 3.0%, but Remitly tends to price its rates slightly better across most corridors. Combine the two and Remitly usually delivers more to your recipient for the same outlay.
Exchange rates
Neither service uses the pure mid-market rate — both build in a margin, so the true cost is partly hidden in the rate. The practical takeaway is the same as always: judge by the amount your recipient receives, not the advertised fee. When you do that comparison, Remitly wins more often than not, though the margin varies by corridor and amount.
Delivery methods and speed
Both are fast and flexible. Remitly offers Economy (cheaper, one to a few days) and Express (minutes), with a wide range of payouts — bank deposit, cash pickup, mobile wallet, home delivery and ATM depending on the country. Xoom similarly offers cash pickup, bank deposit and mobile reload, with cash and mobile-money collection often ready in minutes. For most corridors the speed is comparable; the difference is Remitly’s slightly broader payout menu.
The PayPal factor
Xoom’s single biggest advantage is that it is owned by PayPal. If you already keep a PayPal balance, you can fund a Xoom transfer straight from it, and the service lives inside the PayPal ecosystem you already trust. For PayPal loyalists that convenience can outweigh a small price difference. Remitly has no such tie-in — it is a standalone remittance specialist.
Head-to-head summary
| Factor | Remitly | Xoom |
|---|---|---|
| Transfer fees | Lower; free first transfer | Vary widely by method |
| Rate markup | 0.4%–3.0%, usually better | 0.4%–3.0% |
| Speed | Express in minutes | Minutes for cash/mobile |
| Payout methods | Bank, cash, wallet, home, ATM | Bank, cash, mobile reload |
| PayPal funding | No | Yes |
| Best for | Lowest cost | PayPal users |
Which should you choose?
For most people the answer is Remitly: it usually costs less on both fees and rate, offers more payout options, and runs generous first-transfer promotions. Choose Xoom if you are a PayPal user who values sending from your balance, or if it happens to price better on your specific corridor. Whichever you lean toward, compare the received amount first. For more options, see our reviews of Remitly and Xoom.
Compare on the real rate
Both add a rate markup, so check today’s mid-market rate first and compare on the amount your recipient actually receives.