Quick answer: For bank deposits in Mexico, Wise and Remitly Economy usually compete for the lowest cost, paying to the recipient’s 18-digit CLABE through Mexico’s fast SPEI network. For cash pickup at OXXO, Elektra, Walmart and bank branches, use Remitly, Western Union, MoneyGram or Xoom. If you send from the US, fund the transfer from a bank account or debit card rather than cash to avoid the 1% federal remittance tax on cash-funded transfers.
Ways To Send Money To Mexico At A Glance
Method
Good providers
Speed
Best for
Bank deposit (CLABE via SPEI)
Wise, Remitly
Often minutes
Lowest cost, regular support
Cash pickup
Remitly, Western Union, MoneyGram, Xoom
Minutes
Recipients who prefer cash
Mobile wallet
Remitly, Xoom
Minutes
Wallet users such as Mercado Pago
Debit card deposit
Remitly, others
Minutes
Recipients with a Mexican debit card
What Details You Need
The recipient’s full legal name, matching their ID.
For bank deposits: their 18-digit CLABE.
For cash pickup: their name and a payout partner, such as OXXO or Elektra.
Remitly offers bank deposit, cash pickup, debit card deposit, mobile wallets and home delivery, with partners including major banks, OXXO and Walmart.
Western Union, MoneyGram and Xoom: Cash pickup
All three offer cash pickup across Mexico, including at OXXO and Elektra stores, which reach even small towns.
The US 1% Cash Remittance Tax
Since January 1, 2026, the US has applied a 1% federal excise tax to international transfers funded with cash, money orders or cashier’s checks. The provider collects it at the counter. Transfers funded from a bank account or a US debit or credit card are not covered, so paying digitally keeps that 1% in your family’s pocket.
Tips For Sending To Mexico
A CLABE is not the same as a card number or account number; ask for the 18 digits.
Compare the pesos received, since a zero fee with a weak rate can cost more.
Choose cash pickup only when the recipient really needs cash; bank deposits are usually cheaper.
How We Evaluated
We compared payout methods, pricing, speed and partner networks in Mexico using provider pages and independent comparisons.
FAQ
What is the cheapest way to send money to Mexico?
Usually a bank deposit to a CLABE with Wise or Remitly Economy.
Can I send money to OXXO?
Yes. Remitly, Western Union, MoneyGram and Xoom support cash pickup at OXXO.
What is a CLABE?
An 18-digit standardized bank account number used for transfers in Mexico.
Does the 1% remittance tax apply to app transfers?
Not when you pay from a bank account or a US debit or credit card. It applies to transfers funded with cash, money orders or cashier’s checks.
Conclusion
Send to a CLABE when the recipient has a bank account, use cash pickup when they need cash, and pay digitally from the US to avoid the 1% cash tax.
