Sending money across borders no longer requires that you deal with your bank’s typically unfavorable exchange rates and steep fees. Now, several overseas money transfer companies give you easy and cost-effective means to make cross-border payments. However, whether you should choose PayPal or Payoneer, or opt for another alternative, depends on multiple factors.
To find out what customers of these companies have to say, you do not need to look beyond Trustpilot. Incidentally, average scores of both companies on this platform are below average.
Who is Payoneer?
Founded in 2005, Payoneer is a financial services brand that’s a platform for online money transfers, digital payments, and providing customers with working capital. They are also a worldwide Member Service Provider of Mastercard. Companies that use Payoneer include Airbnb, Google, and Fiverr.
Who is Paypal?
Most people know who PayPal is but just for fun, the company has been around for decades and has revolutionized financial technology and how people bank online. They were pretty much the first to start online banking systems back in the late 90s after seeking an electronic alternative to paper waste. This platform is typically a good option simply for the ease of use and familiarity. They support 200 countries and 25 currencies.
PayPal Vs Payoneer , Which is best for Money Transfers?
You may determine if Payoneer or PayPal is better for you by understanding how these companies differ in their operations across multiple categories.
- Multi-Currency Bank Accounts
- Debit/Travel Cards
- Ease of Use
- Regular Overseas Payments
This section of the Payoneer vs. PayPal comparison will depend on your personal circumstances. Both companies companies have different foreign exchange rates and fees depending on the type of transaction you are making.
- PayPal have different foreign transaction rates depending on what country you have sign up in.
- If you are a US customer, international sales have a 4.4% transaction fee, plus an additional fee based on currency received
- PayPal does not list its FX rates for sending funds from your account to someone else. A USD $100 test from USD to AUD resulted in AUD $133.96. The interbank rate at the time was 1.385. So, the company charged 4.6% to make this transfer.
- Payoneer exchange rates depend on prevailing mid-market rates.
- The company informs you of the exchange rate ahead of time.
- MasterCard exchange rates apply when you use prepaid Payoneer MasterCard in a non-listed currency.
Pay close attention to this section of the PayPal vs. Payoneer comparison because of their different fee structures.
- The country of your residence affects the fees you need to pay.
- In some countries, a currency conversion charge of 2% to 2.75% applies
- Transfers from the U.S. made using a bank account or PayPal balance come with 0% to 2% fees.
- Paying for your transfer using a credit card is typically more expensive than paying through a bank account.
- You may need to pay currency conversion fees.
- You may use Payoneer to send money overseas without paying any fees.
- When you withdraw funds from your Payoneer account to your bank account, a fee applies.
- Payments received from other Payoneer customers using the company’s Make a Payment service come with no fees.
- Payments received through the Global Payment Service require that you pay 1% of the transferred amount as fees.
- If you use the Billing service as an online seller and receive payments via credit cards, a 3% fee applies.
- You may view the company’s detailed fee structure online.
Multi-Currency Bank Accounts
While you may use either PayPal or Payoneer to hold funds and transact in different currencies, only the latter provides unique bank account details.
If you open a PayPal account, the company gives you the ability to hold balances and transact in:
AUD, CAD, CZK, DKK, EUR, GBP, HKD, HUF, ILS, INR, JPY, MXN, NOK, NZD, PHP, PLN, RUB, SGD, TWD, USD.
- The Payoneer Global Payment Service gives you access to free receiving accounts in GBP, EUR, USD, CAD, MXN, AUD, JPY, and CNY
- Receiving funds from mass payout partners such as Amazon, Airbnb, Upwork, and Fiverr is simple
- Transfer money to other Payoneer users through the Billing Service
- Pay no fees when you receive payments in GBP, EUR, and JPY
- Payments received in USD come with 1% fees
- A monthly account keeping fee applies
Both companies provide cards that their customers may use to access funds from their accounts, although the availability of these cards depends on where you live.
- Receiving direct deposits is easy with your PayPal debit card
- Transferring funds from your PayPal account to your PayPal card is easy
- PayPal lets you reload the card online and in person
- Cashback rewards apply when you shop at participating merchants
- The Payoneer Mastercard comes with no annual fees
- Cash withdrawals made at ATMs are subject to fees
- With forex transactions, you might need to pay currency conversion fees in some cases
- The card might come with withdrawal and spending limits based on different factors.
Whether you use PayPal or Payoneer, you get the ability to send money to most countries the world over.
- Check the list of PayPal supported countries
- Payoneer supports transfers to over 200 countries, in more than 150 currencies.
Ease of Use
Both companies fare well in this section of the Payoneer vs. PayPal comparison, unless you want to send money overseas as an individual.
- PayPal serves individuals, businesses, and online sellers.
- Website access comes in multiple languages such as English, Spanish, French, Italian, Portuguese, Chinese, and Japanese.
- You may send money to any PayPal account.
- Withdraw funds from your PayPal account to your bank account easily.
- Depending on where you live, you may be able to use your PayPal balance for online shopping.
- It accepts payments via bank transfers, debit cards, credit cards, and PayPal balances.
- It provides apps for devices that run on iOS and Android.
- The company serves individuals, businesses, and online sellers, but individuals may use its services only to receive money.
- Website access comes in languages such as English, Spanish, Russian, Arabic, Vietnamese, and Japanese.
- The Payoneer Billing Service lets you pay other Payoneer users through your credit card.
- Residents of the U.S. may pay using eChecks.
- Businesses registered in the U.S., the European Union, the UK, and Japan may pay using bank transfers, eChecks, and credit cards.
- The Payoneer payment options page provides further information.
- It provides apps for Android and iOS.
There is no need to worry about the safety of your information or funds whether you choose Payoneer or PayPal. Both companies rely on high encryption levels to keep their websites secure. Both hold client funds in segregated accounts.
- The law in Singapore views PayPal’s payment service as a stored value facility, which is why the company does not need the Monetary Authority of Singapore’s approval.
- It adheres to local rules and regulations surrounding overseas money transfers in all the countries it serves.
- Payoneer has multi-jurisdictional licenses from the U.S., the European Union, Hong Kong, and Japan.
- The prepaid Payoneer MasterCard is issued by Choice Bank Limited, Wirecard Card Solutions Ltd (WDCS).
The decision on which payment option is the best is a question of circumstance and how much money you want to transact. For example, if you live in a country or region where only a few banks offer PayPal withdrawal services, you might opt for Payoneer.
Similarly, if you own a website and most of your customers prefer paying for your products via PayPal as opposed to Payoneer, you will definitely opt for PayPal.
However, if you are just looking for an online payment service that will save you money in the long run, our best bet is Payoneer thanks to their low transaction fees and exchange rates.
The decision, however, is up to you to choose which service fits you better. We recommend that you do further research before settling on either of the services.