What is Xoom?
Xoom is a money transfer service owned by PayPal, which bought it in 2015. It solves a common Nigerian diaspora problem: PayPal itself cannot pay naira into a Nigerian bank account, but Xoom can.
You sign in to Xoom with your existing PayPal login. For many people that means no new account, no new password and a faster start than a brand-new app.
Xoom sends to Nigeria from the United States, Canada, the United Kingdom and the European Economic Area.
How your recipient gets the money
- Bank deposit. Xoom says it can deposit to almost any Nigerian bank, naming banks such as GTBank and First Bank.
- Cash pickup. Your recipient collects cash at partner locations, including First Bank and Ecobank branches. Xoom says cash is typically available within minutes.
Payouts are in naira. Since 1 May 2026, CBN rules require licensed money transfer operators to pay naira, and naira cash pickup is capped at about USD 200 equivalent. Larger amounts should go to a bank account.
How you pay
- PayPal balance. This is the main reason to choose Xoom: money you earned or received in PayPal can reach a Nigerian bank account.
- Bank account. Usually the cheapest way to pay.
- Debit card. Fast, but often a slightly higher fee.
- Credit card. Can be treated as a cash advance by your card issuer, with an extra fee and interest.
US remittance tax. Xoom points out that its transfers are not subject to the 1% US remittance tax that started on 1 January 2026. That tax applies to transfers paid in cash, by money order or by cashier's check, and Xoom transfers are paid electronically.
What it really costs
Xoom earns from a transfer fee, which varies with the amount and how you pay, and from the exchange rate margin. Both are shown before you confirm.
On 8 November 2026, Wise's public comparison feed showed Xoom paying:
- about 2.4% below the mid-market rate from the UK and the eurozone, with fees of about 2.49 and 1.69
- about 2.5% below from Canada, with no fee
The leading apps for Nigeria usually sit closer to the mid-market rate. On a GBP 500 transfer, a margin gap of 1% to 2% costs your recipient roughly ₦9,000 to ₦18,000.
Our advice: use Xoom when the convenience of PayPal is worth that difference, and compare the final naira amount in our calculator first.
Speed
- Cash pickup: typically within minutes.
- Bank deposits: often quick, but they depend on the receiving bank.
- New accounts: new or rarely used PayPal accounts can be asked for extra verification before the first transfer is released.
Things to get right
- Recipient name. Enter it exactly as it appears on their bank account and BVN. Name mismatches are the most common reason Nigerian banks reject a credit.
- Cash pickup ID. For cash, your recipient needs a valid photo ID and the reference number.
- Payment method. Choose bank funding over a credit card if you want to keep costs down.
Who should use Xoom?
It suits you if:
- you already keep money in PayPal and want it in a Nigerian bank account
- you want a trusted brand without opening a new account
- your recipient needs a small cash pickup at a bank branch
Look elsewhere if:
- you want the best exchange rate on a regular bank transfer
- you send larger amounts often
Our verdict
Xoom is the bridge between PayPal and Nigerian banks, and it does that job well. It is not built to win on price. Compare it against the specialist apps on your route: USA, UK, Canada or Europe.