This Article was fact checked and last updated for accuracy on November 3, 2025 by Mani Karthik
The first time I sent money from the US to India, I used my bank.
Bank of America charged me $45 as a wire transfer fee.
Then they added a 3% markup on the exchange rate.
I was sending $5,000. Lost approximately $195 to fees and markup.
That was 2015. I didn’t know better.
Two years later, when planning my move back to India, I discovered Xoom and Instarem.
Wish I had known about them earlier.
Would have saved thousands of dollars.
The Bank Wire Transfer Trap
Traditional banks make money two ways on international transfers.
Upfront fees. Hidden exchange rate markups.
Most people see the $25 or $45 fee. They miss the bigger problem.
The exchange rate markup.
Your bank shows you ₹82 per dollar when the real rate is ₹84.
On a $10,000 transfer, that’s ₹20,000 gone. Just vanished.
I made this mistake six times before someone at Citrix told me about transfer services.
Felt like an idiot. I worked in fintech at SuperMoney. Should have known better.
Here’s the catch: Banks count on you not doing the math. The fee looks small. The markup is invisible.
When you’re transferring money from USA to India, every rupee matters. Especially when moving large amounts during relocation.
What Are Xoom and Instarem
Xoom is owned by PayPal. Started in 2001. Big player. Reliable.
Instarem is a Singapore based fintech. Started in 2014. Focused on lower fees.
Both are money transfer services. Not banks. That’s the key difference.
| Aspect | Xoom | Instarem |
|---|---|---|
| Parent Company | PayPal | Nium (rebranded) |
| Founded | 2001 | 2014 |
| Primary Market | USA to various countries | Asia Pacific focused |
| Regulation | Licensed in all US states | MAS regulated Singapore |
I’ve used both. Multiple times. Real money. Not small test amounts either.
Let me show you what I learned.
My Real World Testing
Sent $3,000 through Xoom in March 2023. Money reached my Indian account in 4 hours.
Sent $3,000 through Instarem in April 2023. Money took 2 days.
Speed difference was significant.
But here’s what surprised me. The total cost.
Xoom Transfer Breakdown
Amount sent: $3,000 Exchange rate offered: ₹81.85 per dollar Fee charged: $4.99 Total received in India: ₹2,45,214
Real market rate that day: ₹82.15 Effective exchange rate after fees: ₹81.74 per dollar
Instarem Transfer Breakdown
Amount sent: $3,000 Exchange rate offered: ₹82.05 per dollar Fee charged: $3.00 Total received in India: ₹2,45,758
Real market rate that day: ₹82.15 Effective exchange rate after fees: ₹81.92 per dollar
Difference: ₹544 more with Instarem.
Not huge. But on larger transfers, this adds up fast.
Similar to how choosing between Wise and Remitly requires actual testing with real money.
Quick Recap: Xoom faster delivery Instarem better rates Your priority determines the winner
The Fee Structure Reality
Both services advertise low fees. True. But incomplete picture.
| Fee Type | Xoom | Instarem |
|---|---|---|
| Transfer Fee | $0 to $4.99 | $0 to $5.99 |
| Exchange Rate Markup | 1% to 2% | 0.25% to 1% |
| Minimum Transfer | $10 | $1 |
| Maximum Transfer | $50,000 per transaction | $50,000 per transaction |
| First Transfer Bonus | Sometimes waived fee | Often better rate |
Numbers verified November 2025.
The exchange rate markup is where the real cost hides.
Xoom shows you an upfront fee. Feels transparent. But the rate is slightly worse.
Instarem charges a smaller fee. Better rate. Takes longer.
When I was moving back to India in 2017, I needed to transfer large amounts for property down payment.
Used Instarem for the bulk amount. Saved approximately $400 on a $25,000 transfer.
Used Xoom for urgent smaller amounts. When speed mattered more than cost.
“I sent $500 through Xoom for an emergency. Money reached in 3 hours. Worth the extra $8 in fees.” – Real feedback from BackToIndia community
Speed Comparison That Actually Matters
Xoom wins on speed. Clearly.
Most transfers complete in minutes to hours. Powered by PayPal’s infrastructure.
Instarem takes 1 to 3 business days typically. Sometimes longer.
| Transfer Speed | Xoom | Instarem |
|---|---|---|
| Bank Account | 3 to 24 hours | 1 to 3 days |
| Cash Pickup | Minutes (India specific) | Not available |
| Card Delivery | Not available | Not available |
| Fastest Method | Debit card funding | Bank transfer only |
The speed advantage of Xoom is real. Not marketing.
I used it when my mom needed money urgently in Trivandrum.
Medical emergency. Sent $1,000. Money in her account in 6 hours.
Instarem would have taken 2 days minimum. Not acceptable in emergencies.
But for planned transfers? Instarem’s better rates win.
When sending money regularly, optimize for cost. Not speed.
My take: Keep both apps ready. Use Xoom for urgent transfers. Use Instarem for planned large transfers.
The Hidden Advantage Nobody Talks About
Xoom has cash pickup option in India.
Your recipient doesn’t need a bank account. They can collect cash from authorized locations.
Sounds minor. But it’s huge for certain situations.
My wife’s aunt in a small Karnataka town doesn’t trust banks. Seriously.
When we send her money, she picks up cash from a nearby agent. Xoom makes this possible.
Instarem only does bank transfers. If your recipient doesn’t have a bank account, you’re stuck.
This is similar to how some remittance services offer features others don’t.
For 99% of people sending money to India, bank transfer works fine.
But that 1%? Xoom is the only option.
Exchange Rate Tracking
Both services let you set rate alerts.
Useful if you’re not in a hurry. Wait for a better rate. Transfer when favorable.
I set an alert on Instarem for ₹84 per dollar in 2022.
Rate hit that level three weeks later. Transferred $10,000. Saved approximately ₹15,000 compared to transferring immediately.
Patience pays.
Xoom has rate alerts too. But Instarem’s interface for this is better. Cleaner. Easier to use.
When managing forex and currency conversion, timing can add significant value.
My US born son learned this lesson early. Set up alerts. Transfers at optimal rates.
He’s 22. Already better at this than I was at his age.
Customer Support Experience
Xoom support is backed by PayPal. Phone. Email. Chat.
Had an issue once with a delayed transfer. Called support. English speaking agent. Issue resolved in 20 minutes.
Instarem support is mostly email and chat. No phone for most issues.
Raised a ticket about exchange rate question. Response took 8 hours. Acceptable but not great.
The PayPal backing of Xoom shows in support quality. They have infrastructure. They have experience.
Instarem is smaller. Growing. Support is functional but not exceptional.
If you value peace of mind and hand holding, Xoom wins. If you’re comfortable with email support, Instarem works fine.
Similar to how customer service differs across platforms even when core functionality is similar.
Safety and Reliability
Both are safe. Regulated. Licensed.
Your money is not at risk with either service.
Xoom benefits from PayPal’s reputation. 20+ years in business. Billions in transfers.
Instarem is newer. But regulated by MAS in Singapore. Serious financial authority.
I trust both with my money. Never had a transfer lost or stuck permanently.
Delays? Yes. Lost? No.
This matters when you’re managing large transfers during relocation.
The NRI and Returning Indian Angle
If you’re returning to India like I did, you’ll need to move significant money.
401k withdrawals. Savings. Investments liquidated.
For large amounts over $25,000, I split across multiple services.
$25,000 through Instarem. Better rates on large amounts.
$10,000 through Xoom. Faster completion as backup.
$15,000 through Wise for comparison.
Total transferred: $50,000 over three weeks.
This diversification saved me approximately $850 compared to using only Xoom.
Saved approximately $1,200 compared to using my bank.
Time invested in setup and management? Maybe 4 hours total.
Worth it.
When planning your financial moves before returning, factor in transfer costs. They add up brutally.
Which One Should You Use
Use Xoom if: You need money transferred urgently You value speed over small cost differences You need cash pickup option You want PayPal backing and support Your recipient has limited banking access
Use Instarem if: You’re transferring large amounts You can wait 1 to 3 days You want the best exchange rates You’re comfortable with email support You make regular planned transfers
Use both if: You’re optimizing every transfer like me You have different needs at different times You want backup options You transfer frequently
I have both apps. Use both regularly. No annual fees. No commitment.
The cost of having both? Zero. The value? Significant.
My Current Setup
Xoom for urgent transfers. Linked to my PayPal account. Keeps $500 ready for emergencies.
Instarem for monthly transfers to India. Sending money to my mom. Regular expenses.
Also use Wise occasionally when their rates are better. Competition is good.
My wife prefers Xoom. Simple. Fast. She doesn’t optimize every rupee.
I prefer Instarem for non urgent transfers. Better rates matter to me.
Different approaches. Both work.
When you’re managing money across countries, having options is valuable.
The Bottom Line
Xoom and Instarem serve different needs.
Neither is universally better. Context matters.
Urgent transfer? Xoom.
Large planned transfer? Instarem.
Need cash pickup? Xoom.
Want best rates? Instarem.
I’ve sent over $75,000 through these services combined since 2017.
Saved approximately $2,400 compared to bank wires.
That’s a domestic flight ticket for my family. Or two months of groceries.
Real money. Real savings.
Stop using your bank for international transfers. Please. You’re literally giving away money.
Use proper transfer services. Compare rates before each transfer. Save thousands over time.
Questions about which service for your specific situation? Ask in the BackToIndia community.
Someone there has probably done exactly what you’re planning.
Sources and References
All data and rates verified as of November 2025 from:
Xoom official website and pricing: www.xoom.com
Instarem official rates: www.instarem.com
PayPal regulatory information: www.paypal.com
MAS licensing database Singapore: www.mas.gov.sg
Federal Reserve exchange rates: www.federalreserve.gov
Exchange rates fluctuate constantly. Always check current rates before transferring. The comparisons in this article are based on actual transfers made in 2023 and rate checks in November 2025.
For related reviews, check my detailed analysis of Xoom Money Transfer and Instarem Review.
TLDR Version
Xoom: Best for: Urgent transfers, cash pickup needs, simple interface Speed: 3 to 24 hours typically Fees: $0 to $4.99 plus exchange markup Support: Phone, chat, email via PayPal My take: Pay slightly more for speed and reliability
Instarem: Best for: Large transfers, better exchange rates, planned transfers Speed: 1 to 3 business days Fees: $0 to $5.99 with better exchange rates Support: Email and chat primarily My take: Save more on big transfers if you can wait
Head to head on $5,000 transfer: Xoom delivers: ₹4,08,700 in 6 hours Instarem delivers: ₹4,09,600 in 2 days Difference: ₹900 more with Instarem
What I actually do: Keep both apps ready Use Xoom for emergencies and urgent needs Use Instarem for planned large transfers Saved approximately $2,400 over 7 years vs bank wires Total annual cost for both services: Zero
Quick decision framework: Need it today? Xoom Can wait 2 days? Instarem Sending over $10,000? Instarem saves more Cash pickup needed? Xoom only option
Reality check: Your bank is the worst option. Almost always. Any dedicated transfer service beats banks. Pick one. Stop losing money to bank fees and markups.
Have specific questions? Ask in BackToIndia Groups. Real people. Real transfers. Real savings shared.