Remitly vs Xoom: Which Is Better for Philippines Transfers? (2026)
Both Remitly and Xoom sit at the top of most "best remittance apps" lists, and for good reason. They're fast, reliable, and trusted by millions of OFWs and Filipino Americans. But they're built for different people. Remitly is purpose-built for remittance—optimized for rates and dedicated to helping you send money home regularly. Xoom is backed by PayPal and offers integration with your PayPal balance, plus bonus features like phone reloads and bill payments in the Philippines.
This guide gives you a straight comparison: which service wins on rates, speed, and features? I've tested both and compared them on fees, exchange rates, and what your family actually receives in pesos. Let's cut through the marketing and see which one makes sense for your situation.
Head-to-Head Comparison: $500 USD Transfer
Comparison for a $500 USD transfer to a Philippine bank account or GCash (approximate April 2026 rates, mid-market: 1 USD = 57.50 PHP)
| Feature | Remitly | Xoom |
|---|---|---|
| Transfer Fee | $3.99 | $4.99 |
| Rate Markup | ~1% | ~1.5% |
| Family Receives (₱) | ₱28,100 | ₱27,950 |
| Delivery Speed | Minutes–1 day | Minutes–hours |
| GCash Support | Yes | Yes |
| Cash Pickup (Partners) | Yes | Yes |
| PayPal Integration | No | Yes (owned by PayPal) |
| Phone Reload & Bill Pay | No | Yes |
| Promo First Transfer Rate | Yes (excellent) | Occasional |
| Loyalty Rewards | Yes | Limited |
Remitly
Xoom
Where Remitly Wins
Better Exchange Rates
On a $500 transfer, Remitly gives you roughly ₱28,100 versus Xoom's ₱27,950—that's ₱150 more in your family's pocket. Over a year of monthly transfers, that adds up to nearly ₱1,800 extra. Remitly's 1% markup is tighter than Xoom's 1.5%, which means more of your money makes it home.
Express Delivery to GCash
Remitly's express delivery option arrives in minutes to 1 day, especially when sending to GCash. If your family needs money urgently, Remitly's speed is unmatched. Xoom is fast too (minutes to hours), but Remitly's dedicated express service gives you more control.
Purpose-Built for Remittance
Remitly exists solely to help OFWs send money home. Their entire product is optimized around this mission—faster onboarding, better rates, and features specifically designed for recurring senders. You're dealing with a specialist, not a PayPal side project.
Exceptional First-Transfer Promos
Remitly frequently offers discounted rates on your first transfer. If you're new to Remitly, you might get a rate promotion that makes your inaugural transfer significantly cheaper than Xoom's regular rates. After that promotion ends, rates normalize—but it's a great way to try the service.
Loyalty Rewards Program
Remitly rewards regular senders with discounted transfer fees and bonus rates on select corridors. The more you send, the better your rates become. Xoom doesn't offer equivalent loyalty programs, so if you're a frequent sender, Remitly's rewards stack in your favor.
Where Xoom Wins
Direct PayPal Integration
If you already use PayPal—whether for eBay, freelance work, or other income—you can fund Xoom transfers directly from your PayPal balance. No need to link a bank account or debit card separately. Remitly doesn't have this convenience, so PayPal users save time and friction with Xoom.
One-Stop Shop: Money Transfer + Bill Payments
Xoom lets you pay Philippines utility bills, credit cards, and reload mobile phones in addition to sending money. If your family's needs go beyond just cash transfers, Xoom's all-in-one interface is convenient. Remitly focuses solely on money transfers.
PayPal Ecosystem Advantages
Xoom is owned and backed by PayPal, which means it inherits PayPal's brand reliability and security infrastructure. If you're already embedded in the PayPal ecosystem (for business, freelancing, or online sales), using Xoom feels natural and integrated. Your account history and security settings are unified.
Good for One-Off Transfers
If you send money to the Philippines occasionally rather than regularly, you don't need Remitly's loyalty rewards. Xoom's competitive rates and simple interface work fine for infrequent senders. You're not penalized for not being a regular user.
Rate Comparison Over Time
Important: Remitly's promotional rates on your first transfer are hard to beat—sometimes 0.5–0.8% markup versus normal 1%. However, after your promo period ends (typically 30 days), rates return to standard levels. If you're comparing both services, test Remitly first to capture that promotion. Then decide if regular 1% Remitly rates or 1.5% Xoom rates make more sense for your ongoing transfers.
Here's what to expect over a year of monthly $500 transfers:
- Month 1 (Remitly promo): ₱28,500 received (0.8% markup with promotion)
- Months 2–12 (Remitly standard): ₱28,100 received (1% markup)
- Months 2–12 (Xoom): ₱27,950 received (1.5% markup)
Yearly advantage for Remitly regular user: ~₱2,200 extra (compared to Xoom regular user). That's roughly one extra transfer per year. Remitly's edge compounds over time—another reason it's better for frequent senders.
The Verdict: Which Should You Use?
Choose Remitly if:
- You send money to the Philippines regularly (weekly, monthly)
- You want the best exchange rates and lowest fees
- You don't have a PayPal account and won't benefit from PayPal integration
- You value loyalty rewards that improve over time as you send more
- You want to capitalize on first-transfer promotional rates
- Express delivery speed matters for your situation
Choose Xoom if:
- You already use PayPal and want seamless integration
- You send money to the Philippines occasionally (not regularly)
- You want to reload phones or pay bills in the Philippines alongside money transfers
- You prefer a single app backed by PayPal's brand and security
- Your family prefers bill payment features available through Xoom
Bottom line: For most OFWs sending money regularly, Remitly is the better value due to superior rates, express delivery, and loyalty rewards. For PayPal users or occasional senders who want bill payment options, Xoom is convenient and competitive. If you're not sure, try Remitly first—capture the promotional rate on your first transfer and experience the speed. Then decide if you want to stick with it or switch to Xoom.
Frequently Asked Questions
Is Remitly or Xoom cheaper for Philippines transfers?
On a $500 transfer, Remitly is slightly cheaper with a $3.99 fee and 1% rate markup, resulting in ₱28,100 received versus Xoom's $4.99 fee, 1.5% markup, and ₱27,950 received. Over time, Remitly's lower rates save you more money, especially if you send regularly. Remitly's first-transfer promos can also be significantly better than Xoom's standard rates.
Does Xoom own PayPal or is PayPal different?
Xoom is owned by PayPal—it's not a separate company. PayPal acquired Xoom in 2015. This means Xoom integrates with your PayPal account and inherits PayPal's security infrastructure. Remitly is an independent company focused solely on remittances. Xoom's PayPal ownership is actually an advantage if you already use PayPal.
Can I use both Remitly and Xoom to compare rates?
Absolutely. Many savvy senders maintain accounts with both apps and compare rates before each transfer. This is smart because rates fluctuate daily. Remitly might be better one day; Xoom the next. By checking both, you ensure you're getting the best rate available. Most people find Remitly wins 7 out of 10 times, which is why we recommend it as your primary service.
Does Remitly offer first-transfer promos?
Yes, Remitly frequently offers discounted rates on your first transfer as a new customer. These promos can significantly improve your rate (sometimes 0.5–0.8% versus 1% standard). Xoom offers occasional promos, but they're less frequent and less generous. If you're new to both services, starting with Remitly to capture the promo is a smart move. You can always switch to Xoom for future transfers if rates are better there.
How fast are Remitly and Xoom really?
Both are fast. Remitly typically delivers to GCash in minutes to 1 day. Xoom delivers to GCash in minutes to hours. For bank transfers, Remitly and Xoom both take 1–2 business days. The difference is marginal. Remitly's express option is available on select routes and can prioritize your transfer. If speed is critical, Remitly's dedicated express service is slightly better, but Xoom is still competitive.
Related Guides
Ready to Send? Try These Providers
Click any provider to visit their site. Links help support BantayPadala at no extra cost to you.
* Wise is a BantayPadala partner. Other links are provided for comparison.