Paypal in the DR can be only cashed out to the U.S. bank account, or via U.S. mail check. Because we do not get mail in the DR (and even in lucky situations it may take 2-3 months to arrive), the only real use of PayPal with DR address is to MAKE payments. Some Asian countries have credit-card Paypal payouts deposited on VISA card. Not so here. Also, to receive payments even on personal Paypal D.R.-based-accounts you are hit with 5.4% charge. For those who HAVE option to make Paypal payout to a U.S. bank account it's much easier to set up a U.S.-based Paypal, with 2.5% fee instead of 5.4% fee.
If you'se using xoom to send money to a USD$ account in DR, then it's good. If you send it to a pesos account, the exchange rate is low and they charge more. I use my credit card because I don't trust them with my bank account. Western Union is the same thing. On the other hand, a transaction with xoom is completed within a day.
I ended up opening up two savings account in the same bank, with both having an atm card. I just transfer the money to her account and she retrieves it using her atm card. It's been the easiest way so far.
I use paypal most of the time but I have a debit card in which I withdraw my money from. I live 1 hour from the closest ATM, so Xoom has been amazing to me.. I will send myself money and it's delivered to my door. Waiting around for it sucks, but I realize it won't come before 11am, or before 3pm if it's in the afternoon.. I LOVE their service!