Introduction
The business system is changing as technology advances every day. Instead of moving to another country or town, people can now work remotely for international companies with the "Work From Home" opportunity. The mode of payment has gone virtual. All of it is at the tip of your fingers. Many other money-transferring mobile apps have been developed to help employers make payments to employees internationally and nationally. PayPal and Payoneer, two of the most popular payment apps, can be used to transfer money.
Many users are either familiar with or use PayPal or Payoneer. These are two of the most well-known payment services. They have been around for over a decade and continue to grow each year. Which is better when you compare Payoneer and PayPal? PayPal and Payoneer are available in over 200 countries around the globe. This Payoneer vs PayPal comparison will show you the differences between these services to help make an informed decision about which one is right for you.
PayPal vs. Payoneer
The main difference between PayPal and Payoneer has lower transaction fees than Payoneer, while Payoneer's are much higher.
Difference between PayPal and Payoneer in Tabular Form
| Parameters for Comparison | PayPal | Payoneer |
| Establishment Year | PayPal was established in 1998. | Payoneer was established in 2005. |
| Active Customers | PayPal boasts over 200 million active customers | Payoneer boasts over 4,000,000 active customers |
| Account Setup | It is easy to set up a PayPal account. | Payoneer accounts can be difficult to set up. |
| Currency Conversion Routes | PayPal allows you to convert money into 26 local currencies | Payoneer allows you to convert money in over 150 currencies |
| Transfer Speed | PayPal takes between 1-2 business days for money to be transferred. | Payoneer transfers money in 0-3 business day. |
| Tax | PayPal has reached an agreement with the Internal Revenue Service Tax. | Payoneer does not have tax validation |
| Transaction Cost | PayPal transactions are more expensive than Payoneer. | Payoneer's transaction costs are comparatively lower than PayPal. |
| Security | PayPal's password security is lower than Payoneer. | Payoneer is the company with the best security. |
What is PayPal?
PayPal is a well-known company in financial technology. In the late 1990s, PayPal was the first company to offer online banking. PayPal now supports over 200 countries and 25 currencies. People use it to replace the old, haphazard method of money transfer. PayPal allows anyone to send money worldwide to family and friends, or to e-commerce sites using their email address. PayPal Payouts allows users to send money to up to 10,000 people simultaneously.
To request or transfer money, one must attach details of their bank accounts or credit cards. The application is free to use and there is no maintenance fee. The money transfer application recently introduced a new service that allows customers to use cryptocurrency to shop at more than 26 million merchants. This network will be available in 2021.
What is Payoneer?
Payoneer, an American money transfer company, was founded in 2005 and offers digital payment services for its customers with working capital. Customers and account holders can send and receive money using an e-wallet that has a virtual bank account number. This allows them to keep the money in local currency. Payoneer is a popular company that specializes in cross-border transactions. It can be used to transact to over 200 countries and territories, with the option of more than 150 local currencies. It is well-known in the market for making famous organisations its customers, such as Amazon, Google, Upwork and Walmart. Popular organisations such as Pond5, Getty Images and iStock are some of its customers. It is well-known for its security services. Payoneer doesn't allow login from all devices without a password or verification. After a successful verification, you can proceed.
What Countries are Available?
Payoneer and PayPal both are available in many countries.
Payoneer
Payoneer can be used in all countries. India does not have the Payoneer Debit MasterCard. The Global Bank Transfer Service is available to transfer funds to your bank via Payoneer.
Paypal
PayPal is compatible with many currencies and is available to customers in over 200 countries. Check the PayPal WorldWide Offers page to see which countries PayPal is available. Click the dropdown menu to find additional information.
How Does Money Transfer Work?
It is important to send and receive payments quickly and efficiently, regardless of whether you are a freelancer or a business owner.
Payoneer
Payoneer's payment services are available to merchants, freelancers, and companies worldwide. All money is directly deposited into your local bank account. You can quickly and safely receive funds in over 150 currencies from more than 200 countries at rates that won’t break the bank.
Payoneer accounts can be used to receive bank transfers from companies and marketplaces in Canada, Mexico and the United States. Payoneer accounts work in the same way as traditional bank accounts. You can send money to customers from different countries if you provide your account information. You can also withdraw money in your local currency from your Payoneer account.
To pay suppliers and contractors, you can also use Make A Payment. Payoneer funds will be sent directly to the professionals and contractors you choose. The recipient doesn't need to have a Payoneer account. It is possible to send funds to Payoneer account holders at no cost. Transfers to bank accounts are subject to a minimal fee.
Paypal
You can access PayPal's online services via the smartphone app or website. You can add a payment method, add funds, and then choose another PayPal account. You can transfer money to your bank account or other PayPal accounts. PayPal's money transfer service Xoom lets you send funds to a bank account. Send money to the transfer pick-up point to receive cash or to open a bank account. These operations are subject to fees. PayPal is the most popular fund transfer service. The exchange rate and transfer fee are the main factors driving up the cost.
What are the Card Options Available?
You can withdraw money at ATMs with your card. You can use them to buy goods from traditional brick-and-mortar retail stores or online merchants' sites. How do you choose which card? This section will compare the PayPal and Payoneer card offerings.
Payoneer
You can use your Payoneer account balance to make payments for their physical and virtual cards. These cards can be used at all locations that accept MasterCard payments, such as ATMs and stores. A minimum of $100 in Payoneer payments in the past 6 months is required to be eligible for the card. Skrill, PayPal, other eWallet account payments, and in-network payments (such as those made with Make A Payment) are not considered.
Due to recent regulatory changes, Payoneer is unable to issue cards to Russian shipping addresses or billing addresses. Payoneer will display the Order Card option in your account menu for customers who are eligible.
Either you can request a card through your online account once your application is complete, or you can request the card while you are filling out the application information. These options are dependent on where you live. One active card can only be linked to one currency.
Payoneer MasterCard can also be used wherever MasterCard is accepted. You can use it at both physical and online locations around the world. You can use it to purchase goods and services or withdraw money at ATMs. MasterCard can be used to pay online at any site that accepts it.
Payoneer cards have the following daily limits:
- For a maximum of $5000, you can make 30 ATM withdrawals.
- For a total $2500, you can do up to 30 sales transactions.
- Your Payoneer card has a daily limit of $5000.
These daily limits cannot be increased and are in compliance with MasterCard regulations.
Paypal
PayPal has many options when it comes to credit cards. PayPal offers the Extras MasterCard and Cashback MasterCard credit card options. The Prepaid MasterCard and Cash MasterCard are their debit cards. A digital credit line called PayPal Credit is also available. This doesn't have to be linked to a debit or credit card.
What Exchange Rates are Available?
The exchange rate refers to how one nation's currency compares to another country or economic zone. Knowing exchange rates will help you save money, and avoid losing money while travelling or doing business.
Payoneer
A currency conversion fee will be charged if the currency used to make a transaction is different from what you have on your Payoneer Card. Let's suppose you are paying for something in the UK. The merchant will charge you in GBP if you pay with a US-issued card. The merchant will convert your currency automatically to complete the transaction.
For purchases made using your Payoneer card, MasterCard conversion rates will be used. To estimate your conversion amount, you can use MasterCard's Currency Conversion tool. Payoneer charges a currency conversion fee of up to 3.5%.
Paypal
PayPal does not use the mid-market range as Payoneer does when currency exchange. Because they are based on rates from banks, their rates may vary. This is a problem in terms of currency exchange rates as most bank rates aren’t transparent or great. PayPal also charges 2.5% in addition to the rate they receive from banks. While this makes PayPal and the bank more money, it can also be quite expensive for users.
Transaction fees will apply to sales made through the PayPal gateway, product or service. The currency used by clients will determine the fee and PayPal's 2.9% transaction fees. PayPal will charge a 4.4% additional transaction fee for transactions made outside of the United States. You can send invoices to your clients with no fees. They will be subject to PayPal's high exchange rates and other charges that may apply when they send payments.
Merchant accounts can use PayPal's payment gateway to create an e-commerce platform they own. This is a common scenario with WordPress plugins and PayPal WooCommerce. Payoneer's currency exchange rates are cheaper than PayPal. Payoneer was designed with businesses in mind. Payoneer works well for small businesses, freelancers, busy professionals, and service and product marketplace transactions of all sizes. Payoneer customers who convert money will be charged a flat fee of 2%
Main Difference Between Paypal and Payoneer in Points
Here are the primary difference between Paypal and Payoneer
- PayPal accounts are easy to set up with the correct credentials and an e-mail ID. Payoneer accounts are more difficult because they are highly secure and don't accept everyone.
- PayPal allows you to convert money into 26 local currencies. Payoneer, on the other hand, can convert money into more than 150 local currencies.
- It can take up to 1-2 business days for money to reach its recipient when it is transferred via PayPal. It takes approximately 0-3 business day to send money to Payoneer.
- PayPal's transaction costs are comparatively more expensive than its competitors. Payoneer's transaction costs or fees are much lower.
- PayPal is extremely secure, but it does not have two-factor authentication. This means anyone can access the PayPal account from any device with a password. Payoneer, on the other hand can be considered the most secure. If someone logs in from a device that they have never used before, Payoneer will ask for verification. Only then can one proceed.
- PayPal has an agreement to tax with the Internal Revenue Service Tax. Payoneer, however, does not have tax validation
Conclusion
It might now be easier to distinguish which of the two most popular financial transaction apps - PayPal or Payoneer - after comparing them. Each has its pros and cons. PayPal is widely used around the globe, but in certain places it does not offer its services. In those cases, one can opt for Payoneer.
If you have an online shop and your customers prefer PayPal, then PayPal should be preferred to Payoneer. Payoneer is a low-cost option for those who want to use these applications to transfer money. The user's decision lies entirely with him/her and their needs. For a smoother experience, you should carefully consider everything from transaction fees to security before you choose any of these applications.
