Moving to or living in Mexico as a foreigner comes with many logistical challenges, and one of the most common challenges is transferring money from your home country to Mexico. Whether you’re sending funds for living expenses, paying for property, or simply helping out family and friends, knowing the most reliable, cost-effective and secure methods is crucial.  

This article will discuss some of the most commonly used ways to transfer money to Mexico, including options like Wise, Xoom, Remitly, and traditional wire transfers. We’ll explore the pros and cons of each method, including fees, transfer limits, typical transfer times, and other relevant details. 

Wise (formerly TransferWise) 

Wise is a popular international money transfer service known for offering low-cost transfers and using mid-market exchange rates, which are often more favorable compared to banks and other money transfer services. 

Pros: 

• • Low fees: Wise charges a transparent fee that is often significantly lower than traditional banks or wire transfers. 
  • Mid-market exchange rates: Unlike many other services that add a margin to the exchange rate, Wise uses the mid-market rate making your transfer more cost-effective. 
  • User-friendly interface: Wise’s platform is easy to use, allowing you to track transfers in real-time. 
  • Available in many countries: Wise supports transfers to a wide range of countries, including Mexico. 

Cons: 

• • Transfer times: Transfers can take up to 1-3 business days depending on the source of funds and the receiving bank, but often times the transfers are immediate. 
  • Not always ideal for large transfers: While there are no strict limits, Wise may not be the best option for large amounts as it doesn’t offer the same level of security or speed as some traditional methods. 

Fees & limits: 

• • Fees: Typically, between 0.35% and 1.5% depending on the currency and the amount. Wise provides a fee calculator on its’ website to give you an exact fee for your transfer. 
  • Transfer limits: The limit is up to $1,000,000 USD per transfer (more for SWIFT), but this can vary widely based on the country and method – wire, ACH, or debit/credit card. 

Best for: 

• • Individuals who want low-cost transfers, and are willing to wait up to a few days for the funds to arrive. 

Xoom (by PayPal)

Xoom is a service by PayPal, and allows users to transfer money quickly to over 130 countries, including Mexico. One of Xoom’s key features is the ability to transfer funds directly to bank accounts, send cash for pick-up at locations across Mexico, or even pay bills directly. 

Pros: 

• • Speed: Transfers are often completed within minutes, especially for cash pick-ups or when using debit cards. 
  • Multiple delivery options: You can send money for direct deposit, cash pick-up (e.g., OXXO, elektra, Walmart, etc.), or home delivery (where available). 
  • Integration with PayPal: Xoom is owned by PayPal. So, if you already use PayPal, sending money via Xoom is seamless. 

Cons: 

• • Higher fees for smaller transfers: Xoom’s fees can be higher than services like Wise, especially for smaller amounts. 
  • Exchange rate markup: Xoom charges a margin on the exchange rate, which can make the transfer more expensive. 

Fees & limits: 

• • Fees: Xoom charges a fee based on the method of payment. Bank transfers typically have lower fees, while debit/credit card transfers incur higher fees (up to $5 to $30 USD per transfer). Cash pick-up fees are also generally higher. 
  • Transfer limits: Depending on your transaction history with Xoom, you can send up to $50,000 USD (24 hour limit) in one transfer and up to $100,000 USD (180 day limit), but this amount varies based on the customer’s profile, as well as limits to how much you can send in certain time periods (24 hours, 30 days, or 180 days). 

Best for: 

• • Those who need to send money quickly or who need flexible options like cash pick-up or bill payment. 

Remitly

Remitly is another popular money transfer service with a focus on speed and affordability. Like Xoom, it offers both direct bank deposits and cash pick-up options, with a wide network of partners in Mexico. 

Pros: 

• • Fast transfers: Remitly offers an “express” option that allows money to be sent in minutes. 
  • Competitive exchange rates: While Remitly doesn’t always use the mid-market rate, its exchange rates are generally better than many traditional banks. 
  • Multiple transfer options: You can send money for bank deposit, cash pick-up (e.g., OXXO, Banco Azteca, BanCoppel, etc.), or mobile wallet deposit. 

Cons: 

• • Fees for faster service: The “express” option incurs higher fees than standard transfers, especially for smaller amounts. 
  • Exchange rate markups: Like Xoom, Remitly adds a margin to the exchange rate, increasing the cost of your transfer. 

Fees & limits: 

• • Fees: Remitly charges a flat fee, ranging from $0 to $4.99 USD for standard transfers and higher fees for faster options. For example, transferring $500 USD via debit card may cost around $3.99 USD. 
  • Transfer limits: New users can send up to $2,999 USD per day, while those with verified accounts can send up to $10,000 USD (24 hour limit) in one transfer and up to $60,000 USD (180 day limit). Like Xoom, there are limits to the amount of money you can send per 24 hours, 30 days, and 180 days. 

Best For: 

• • Individuals who prioritize speed and want a service that provides a cash pick-up option. 

Traditional Wire Transfers 

Wire transfers are one of the most well-established ways to send money internationally. They are often done through banks, and while they are considered very secure, they can be expensive relative to other methods. 

Pros: 

• • Security: Wire transfers are one of the safest methods for transferring large amounts of money. 
  • Wide availability: Virtually all banks around the world support wire transfers, and they can be done both online and in-person. 
  • Good for large transfers: If you need to transfer a large sum of money, wire transfers are often the preferred option due to their high transfer limits. 

Cons: 

• • High fees: Wire transfers usually come with significant fees, ranging from $15 to $50 USD per transfer, depending on the banks involved. 
  • Slower processing times: Wire transfers can take up to 3-5 business days, especially if intermediary banks are involved. 
  • Exchange rate markups: Many banks apply a markup to the exchange rate, which can make this option more expensive. 

Fees & limits: 

• • Fees: Vary depending on the bank but international wire transfers generally range between $25 to $50 USD. Receiving banks in Mexico may also charge additional fees. 
  • Transfer limits: Wire transfers typically have high limits (up to $1,000,000 USD or more), depending on the institution. 

Best for: 

• • Those who need to transfer large amounts of money securely and are less concerned with the cost. 

MoneyGram

MoneyGram is another well-known money transfer service, offering both online and physical branch locations for cash pick-ups across Mexico. MoneyGram is a trusted option for sending smaller amounts of money internationally. 

Pros: 

• • Accessibility: MoneyGram has thousands of locations across Mexico for easy cash pick-up. 
  • Speed: Transfers are typically completed in minutes, making it ideal for urgent needs. 
  • Cash pick-up: You can send money for cash pick-up at various MoneyGram agents across Mexico, such as OXXO, Farmacias Guadalajara, Citibanamex and more. 

Cons: 

• • High fees for small transfers: Fees can be high, especially for small transfers or if you use a debit/credit card to fund the transfer. 
  • Less competitive exchange rates: MoneyGram adds a significant markup to the exchange rate. 

Fees & limits: 

• • Fees: MoneyGram charges between $5 and $15 USD for small transfers, with fees increasing based on the amount and method of payment. 
  • Transfer limits: For Mexico, MoneyGram allows transfers of up to $5,000 USD per transaction. 

Best for: 

• • Those who need to send cash for pick-up or small amounts of money quickly. 

Western Union

Western Union is one of the most established names in international money transfers. It offers both online transfers and a network of physical locations for sending and receiving money. 

Pros: 

• • Wide availability: Western Union has thousands of locations across Mexico, making cash pick-ups extremely convenient. 
  • Fast transfers: Money sent through Western Union is typically available within minutes. 
  • Multiple payment options: You can pay using a bank account, debit/credit card, or cash at an agent location. 

Cons: 

• • Higher fees: Western Union tends to have higher fees, especially if you’re sending money using a debit/credit card. 
  • Exchange rate markups: As with many services, Western Union applies a margin to the exchange rate, which can make transfers more expensive. 

Fees & limits: 

• • Fees: Fees vary depending on the payment method and the amount, ranging from $5 to $45 USD. 
  • Transfer limits: Western Union generally allows up to $7,500 USD per transaction. 

Best for: 

• • Those who need instant transfers or want the flexibility of choosing between online and physical locations. 

Key Considerations 

When choosing a method to transfer money to Mexico, it’s important to consider the following: 

• • Transfer speed: How quickly do you need the money to arrive? Services like Remitly, Xoom, and Western Union may offer near-instant transfers but sometimes at a higher cost. 
  • Fees: Be mindful of the transfer fees and how they scale with the amount you’re sending. Smaller transfers tend to have higher fees relative to the amount, so for sending large amounts, consider wire transfers or services with flat fees. 
  • Exchange rates: Some services offer better exchange rates than others. Wise stands out as one that uses the mid-market exchange rate, meaning you’re likely to get more pesos for your money. 
  • Transfer limits: If you need to transfer large sums, ensure that the service you choose supports the amount you need to send without excessive fees or restrictions. 

Conclusion 

Sending money to Mexico is easier than ever with a variety of options to suit different needs, from fast transfers via Xoom and Remitly to cost-effective services like Wise. However, it’s important to weigh the pros and cons of each method in terms of speed, fees, and transfer limits. By selecting the right service, you can ensure your funds are transferred efficiently, securely, and at the best possible rate. 

Please feel free to leave us a comment below about your experiences with moving money to or from Mexico. We would love to hear from you!