Transfer costs, security, and network ties are the main distinctions between Payoneer and PayPal. Payments made using PayPal are more secure and have fewer fees than those made through Payoneer. PayPal’s extensive network and worldwide currency capabilities make sending payments all around the world simple. PayPal transactions take 1-2 business days to complete, whereas Payoneer transactions take 0-3 business days.
Making payments to overseas freelancers can be a pricey procedure, whether you’re growing a small firm or forming a remote workforce. Timing, fees, and convenience of usage are all influenced by how you pay individuals. When it comes to handling international payments, you’ll need a financial services firm that can satisfy your company’s requirements.
Here, we compare Payoneer vs. PayPal to see which one is the best for you.
Is Payoneer a Better Choice Compared to PayPal?
Payoneer is a financial services brand that offers an online platform for domestic and international money transfers, digital payments, and working capital to consumers. It was founded in 2005. They are also a Mastercard Member Service Provider with a global reach. Airbnb, Google, Amazon, eBay, Rakuten, Adobe, Upwork, and Fiverr are among the companies that use Payoneer.
Payoneer supports these currencies: USD, EUR, GBP, CAD, AUD, JPY and CNH.
Payoneer’s Pros vs. PayPal
Payoneer works with over 200 countries and 150 different currencies. You can use the financial payment service to withdraw money using a debit card, as well as send and receive money both locally and internationally, including via local bank transfer.
Payoneer charges a $3 fee every transfer, but it is free to receive. If you live in the United States, you can also use an e-check to pay. You can pay other Payoneer customers with ease using the Payoneer Billing Service, which also has a mobile app.
The brand issues a prepaid Mastercard (not a Visa) to make money transfers easier. It can be used as a debit card for any purchase, including online shopping. Rather than being deposited into your online account, payments are routed to Payoneer Mastercard (and then transferring to a local bank account).
If you need money immediately, this means less bother. The card can be used at any ATM in the world, but there is a $2,500 daily limit. They will charge you an average of 1% of the transaction in foreign exchange fees, according to the pricing structure.
Payoneer features a customer support system and a library of tools to assist you expand your expertise. The company has offices all over the world and may be reached via email, phone, or live chat.
Payoneer’s Cons vs. PayPal
When comparing PayPal with Payoneer, Payoneer has higher rates and exchange expenses. A minimum monthly payment of $20,000 is required by Payoneer. Furthermore, only transfers to other Payoneer accounts are permitted. There is no involvement from a third party. If you have a customer who refuses to cooperate with the brand, this might be a major issue. You might lose your job. On the platform, only private consumers can withdraw money. They will never be able to send money.
Payoneer allows users to make single payments or batches of up to 200 payments, which is less than what PayPal’s business account clients can do.
For foreign transactions, the site charges a currency conversion fee ranging from 2% to 2.75 percent, depending on the country. If you use a non-listed currency, you will be subject to Mastercard’s exchange rates. Payoneer charges an annual fee to use the Mastercard, unlike most other money transfer providers.
When it comes to branding, the majority of payees join the Payoneer network and so are exposed to its marketing. This includes any email correspondence sent by Payoneer rather than the payer (like they should).
PayPal is not accepted as a payment option. When it comes to running an e-commerce business, this might be a difficult hurdle to overcome.
Payoneer’s signup process is extensive (tons of paperwork), and some users wait over a month to receive their card, according to internet evaluations. If you need to conduct business straight quickly, this is inconvenient.
Unreturned payments, blocked accounts, and a non-responsive support crew are among the complaints. Payoneer initiated a drive to enhance its internet reputation in 2018, yet the company continues to receive unfavorable reviews.
Is Paypal a Better Choice Compare to Payoneer?
Since PayPal has been operating for decades, most people are familiar with the company. The platform has changed the way individuals bank online and altered financial technology.
PayPal was the first to launch online banking services in the late 1990s, after seeing the need for an electronic alternative to paper waste. This platform is usually a solid choice due to its simplicity and familiarity. They accept 200 different currencies from 200 different countries.
PayPal accepts PayPal account balances, credit cards, debit cards, and ACH bank transfers as payment methods. Approved PayPal customers can get their own PayPal credit card.
PayPal has a $500 withdrawal limit for unverified accounts in the United States at the moment. The withdrawal limit can be increased by following two of the three steps below:
- “Verifying your bank account.
- Linking and confirming your credit or debit card information.
- Providing your social security number.”
For its eCommerce customers, PayPal serves as both a payment gateway and a payment processor.
The site is free to use for both payers and payees, and it has a low barrier to entry. In today’s world, there are approximately 210 million active PayPal accounts spread throughout 156 countries. The company is noted for its integration versatility, and it works with prominent payment systems like Tipalti to streamline transactions.
PayPal’s Pros vs. Payoneer
PayPal is the most well-known name in the payment processing industry. They also link with a variety of accounting and CRM platforms, allowing them to automate a variety of processes. Because the organization has been established for so long, it provides a wide range of services. A Mastercard, such as Payoneer, falls into this category. Except that there is no annual maintenance fee for using PayPal.
In 2017, the PayPal system had over 200 million active users. The brand’s age contributes to its strength. By now, they’ve partnered with so many businesses and brands that using a PayPal Mastercard is as simple as using a bank.
To use PayPal, you do not need to create an account. Another handy alternative is for anyone to give money and then determine who pays the costs charged by PayPal. Even if it’s simply for the auto-fill on all your buying sites, having a PayPal account is a good idea if you’re going to use PayPal frequently. To receive funds in their receiving account, payees must first register a PayPal account.
You can pay up to 10,000 people at once with the PayPal Payouts tool.
PayPal’s Cons vs. Payoneer
Non-verified PayPal accounts are subject to online payment restrictions, including a $10,000 limit on individual transactions. A payee can only send 5,000 payments per file using the user interface, and 15,000 via the Payouts API. It can often be difficult to figure out why a payment fails.
Another problem with PayPal is that they sometimes suspend accounts without warning. This can be a difficult challenge for small business owners to overcome, especially when shipping substantial amounts of money.
Transaction fees for PayPal can vary depending on circumstance. It involves things like:
- Whether you were using your bank account or PayPal balance
- Whether you used a credit or debit card
- International transfers
PayPal, it should be mentioned, also charges fees for currency exchange. International sales incur a 4.4 percent transaction fee plus an extra cost based on the currency received if you are a client in the United States. PayPal, on the other hand, is generally open about its charges.
A Smart Alternative to Payoneer & PayPal
Tipalti, a stylish payables automation tool, offers an alternative to Payoneer and PayPal. Finance departments may use the platform to streamline processes and optimize the entire payment process.
Unlike Payoneer, the system is affiliated with PayPal and offers transparent pricing as well as excellent customer service. They are smaller than both platforms, allowing them to devote more emphasis to specific organizational requirements.
Tipalti offers a variety of competitive features that include:
- Make mass payments to suppliers and partners in any country.
- Eliminate up to 80% of the AP workload.
- Assist with tax and regulatory compliance.
- Automate the entire payment management process from onboarding, to invoice processing and reconciliation.
- Cut costs and waste.
Tipalti’s dedicated customer service is praised by reviewers. This elevates it to the top of the payment processors list.
Finally, the type of payment solutions service you select should correspond to your business demands. Price, convenience, and ease of usage are all factors to consider. The solution you acquire will promote growth and contribute to future success if you conduct thorough research and have a thorough understanding of your business structure.
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