In an age of global trade, the line between geographies is thinning rapidly, allowing MNCs and large corporations to startups and SMBs to engage in online commerce more than ever. The number of professionals consulting and working remotely has also increased in the last one decade.
No wonder, the requirement of a secure payments solution to carry out business operations across the globe has touched the sky. After all - no one wants to stay awake at night due to transactional worries. Each one us has the right to get paid for our jobs smoothly and efficiently, and businesses on the other also want to be able to transact seamlessly.
Thankfully, there are many tools in the market to enable businesses and professionals to pay and get paid smoothly. And yes, the list is too long and finding the best tool fit for all kinds of users can be a bit challenging. But don't you worry - I have tried and tested two platforms, Payoneer and Paypal, and I think a transparent comparison of both will help you arrive at a better decision.
Without further ado, let us first pick Payoneer and learn about its offerings. What do you think? Are you ready? Here we go:
Payoneer - making transactions simpler
Yes. That's what the platform is all about! But before I begin to delve into its features, let me give you a short background about the company. Payoneer, a financial services company, was founded in 2005 in New York. The mission behind its establishment was to assist people with online payments not just in the USA but also across the globe.
As of today, it caters to more than 200 countries and transacts in over 150 kinds of currencies. Payoneer is an award-winning platform and has been a recipient of multiple recognitions such as 2015 PYMNTS Innovator Awards Silver Medal in B2B Innovation Category, 2017 Red Herring North America: Top 100 Winner, Deloitte's 2017 Technology Fast 500™, and Inc Magazine's Best Workplaces 2017.
Payoneer's clients include Google, Airbnb, Amazon, Taboola, and more. Payoneer is scaling greater heights, isn't it? So, if you are an international freelancer or if your business engages in global commerce, it might be a good idea to give Payoneer a fair shot. Make your professional life stress free with Payoneer.
Features
1) Account setup
Payoneer is neither a payment service provider (PSP) nor a merchant account provider. It is merely a facilitator between two parties. It is mandatory for the user to make an account to be able to carry out transactions. Payoneer doesn't charge anything for signing up service. However, to be able to use it correctly, you have to pay a maintenance amount of about $30.
2) Solid security
Money, being an object of emotion, demands a safe environment. And when we speak of global trade, the need for a secure system is even more tenacious. To give a hassle-free and a stress-free experience, all transactions on Payoneer are encrypted and are done reliably.
3) Account management
Payoneer is a global platform, catering to people from multiple time zones. It offers 24/7 multi-lingual customer care service to resolve queries at the earliest. It doesn't make sense to have account management which works for only a specific number of hours. The point is if you are on Payoneer, you will receive help - whether it is 2 AM or 5 PM.
4) Contract length and early termination fee
The user is billed on a monthly basis and doesn't need to sign any contracts for one year or more. I think the flexibility offered is a relief for those who don't want to be tied down with one particular platform for an extended period.
However, you will still have to pay an annual fee of $29.95, which includes the maintenance fee of the debit card provided to you once you finish the setup process on Payoneer. So, please be extremely sure of using the platform for a prolonged timeline; otherwise, it is a massive waste of time.
But wait, there is more to Payoneer vs PayPal.
5) Innovative Mass Payout service
When I think of Payoneer, the first thing that comes to my mind is "global." Payoneer's Innovative Mass Payout service enables Indian marketplaces and businesses to efficiently conduct financial transactions, sitting anywhere, from across the globe.
Payoneer honestly strikes the right emotional chord with people who are looking to do great business without dealing with any transactional worries. Imagine using a system where the security system combines with global compliance and risk mitigation operations. It's an arrangement sent from God for people who want to grow professionally, grow their businesses and drive higher revenue streams.
6) Global payment service
This feature enables fund transfers from local banks. It allows international businesses to worry little about financial transactions. As mentioned before, Payoneer deals with multiple global currencies such as INR, AUD, EUR, USD, CAD and more. The wide range of foreign currencies makes it extremely easy for freelancers and companies to do business without worry about secure payments.
If you are working in either of the countries such as Japan, Canada, Australia, India, and the USA, please be assured that Payoneer has got you covered. Transacting has never been easier. Focus on your career - no matter where you are and what you do.
7) "One size fits all" payments
The user can receive funds from Payoneer's any of the integrated mass layout partners such as eCommerce, stock photography, vacation rental, and freelance marketplaces along with many affiliate networks - that are directly linked to the user's bank account.
Envato, Freelancer.com, iStock, Fiverr, 99 designs, Getty Images, Amazon, Upwork, Taboola, Airbnb, and Wish are some of the world-famous brands that are on Payoneer - making payments to the number of people they work within the world.
Payoneer is extremely easy to use. It is convenient, and the users get to pay and get paid rather smoothly in 2-4 working days within a compliant framework. If this is something that attracts you and gives you confidence, sign up and use it.
8) Low-cost billing service
It doesn't matter where you are a professional, a business owner or a freelancer, a quick and easy method for conducting financial transactions is all one needs especially when physical boundaries don't play a significant role. Broaden your horizons with a service that bagged a Gold prize in P"YMNTS 2017 Innovator awards", in the "Best Small Business Innovation" category in 2017.
Payoneer allows the users to transact safely through debit and credit cards. It is a useful mode of making payments. If you are in doubt, I would suggest you use the services for a while. If you get comfortable using it, high. Otherwise, there are other fish in the sea you can use.
But wait, there is more to Payoneer vs PayPal.
9) Blog updates and tips
If you are a do-it-yourself kind of person and would instead read a couple of articles on using a particular feature of Payoneer rather than talking to a customer care representative, then you are going to love the industry updates and financial tips offered by the Payoneer blog.
10) Payoneer's exclusive MasterCard debit card
That's right! As soon as you sign up with service, Payoneer will send you your debit card to make payments once you have transferred sufficient funds to your Payoneer account. Pay an annual fee of $29.95 for maintaining the account.
Since the maintenance fee is high, it is feasible to create a Payoneer account only if you plan to use the account regularly. Don't sign up if you don't intend to be frequent while using Payoneer for your transactions.
11) Payoneer's mobile app
Payoneer's mobile app is available for both Android and iOS users. The app isn't exactly wholesome, but it does serve a purpose. While you can't make payments using the app, it does give you an overview of the most recent transactions - essential for those who are waiting to get paid for their job.
12) eCheck processing
The paperless format of a paper check, an eCheck integrates security and processing efficiency of online transactions - thus making Payoneer a cost-friendly tool. eChecks don't have any transactional and deposit fees. Payoneer processes all checks on the Automated Clearing House (ACH) system for their two-way transactions.
Payoneer is a heavenly combination of that which is why it is immune to money laundering and fraud. It also doesn't disclose any details about the other security features it has put in place to avoid any money-related mishaps.
And even if you won't find much information about their encryption, it is reliable and sturdy, and you can take a sigh of relief! Are you ready to give it a shot yet? If you are still pondering over that question, let us take a look at the kinds of customers it caters to, okay?
Customers
Payoneer offers services to two broad categories of audiences. Let us have a look:
1) Freelancers
Payoneer is a boon for freelancers, businesses that hire freelancers, and freelance marketplaces. It is quick, flexible and low-cost. Upwork, Freelance.com and PeoplePerHour are some of the markets that are currently using Payoneer.
The platform will hook up the user with a host of payment services to eliminate the hassle of getting paid and to help them only focus on one thing - growing the business and earning more money in the process.
Tunisia, a customer of Payoneer and a freelancer at Upwork, revealed in his testimonial that Payoneer has helped him run a business online without worrying too much about the payments. He says the platform is God-send for those who live in countries with limited opportunities.
Another customer, Oussama Kotaich, said that he has never had to worry about getting paid efficiently - all thanks to Payoneer. The platform has made it simple for people to freelance extensively without worry about payments!
2) eCommerce
Businesses across the globe have the option of using a single dashboard for conducting financial transactions - irrespective of demographics, mode of payment, a currency of the seller and more. Cross-currency transactions are smoothly possible as the platform is made keeping in mind the advanced global trade in this age and time.
Please don't be surprised to find eCommerce brands such as Jumia, Shopee, NewEgg, Amazon.com and Envato using the platform and thriving like there is no tomorrow! Other brands such as Supersonic, CAKE, DailyMotion, Ad4Game, and Taboola are also reaping the benefits of Payoneer.
Affiliations
Irrespective of the location, the currency of the beneficiary, and place - brands such as MediaShakers, Somoto, Supersonic, and CitiBank can enjoy being in the massive network of affiliates of Payoneer. The thing is publishers across the continents face challenges when it comes to making payments and worse - receiving them. Payoneer offers a smoother path to ensure that the transactions take place smoothly.
I know I keep emphasizing on how excellent the platform is when it comes to global transactions, but the truth is it has made the world smaller and possible for the people to do more competitive business than ever. Wouldn't you want to jump on the bandwagon? I think yes.
Integrations
Some of the applications that can be integrated with Payoneer are RepricerExpress, Time Doctor, Xero, SellerEngine, VatGlobal, Wave, QuickBooks, Certify, Clio, and Concur. Many other applications are set to join the tow, so watch this space for more.
Pricing
Payoneer has a reasonable pricing structure - keeping in mind its diverse customers. There are three ways in which the user can receive payments. Payoneer has tried to be as consistent as possible since currency conversion is involved. Let us have a look:
1) Through marketplaces and networks
Brands such as Airbnb, Fiverr, Upwork and Wish join other businesses that transact on Payoneer. However, your local bank may charge the additional fee if you do transactions through the platform.
2) Through receiving accounts
Through Payoneer's Global Payment service, the user gets local receiving accounts in USD, GBP, JPY, EUR, and more. Basically - it is like having your local bank account. No currency conversion is involved in the transaction.
Each time you withdraw funds from your Payoneer account, you are charged $15. And to convert the withdrawn currency into your local one, you need to pay up $2 - this isn't a significant amount in the grander scheme of things.
3) Directly from the customers
Through Payoneer's Billing service, you can conduct a payment from the dashboard and get paid directly. However, you will have to incur a 3% processing fee on all currencies in case you use a credit card. But if you cut an eCheck in USD, it's free! Now it is up to you, what you want to choose.
Cons
Yes - there is a flipside to using Payoneer. Since I am reviewing the platform, it is my responsibility to give you a complete picture. Here are three significant disadvantages of Payoneer that stand out:
1) No high-value transactions
It allows the user to make and accept credit card payments but the fees for these necessary transactions is a lot higher when charged by merchant accounts. This makes the platform unfavorable for doing high-value transactions. If your business is into it, it is best to avoid the platform and choose something where you can be assured of its reliability.
2) Compulsory annual fee
As soon as you sign up with service, Payoneer will send you your debit card to make payments once you have transferred sufficient funds to your Payoneer account. Pay an annual fee of $29.95 for maintaining the account. However, if you decide to shut the account mid-way, the money is not refunded.
3) Additional costs
Since the maintenance fee is as high as $29.95, it is feasible to create a Payoneer account only if you plan to use the account regularly. Don't sign up if you don't intend to be frequent while using Payoneer for your transactions because the platform charges an "account inactive" fee to its dormant users.
I agree the emphasis on how excellent the platform is when it comes to global transactions is excellent, but the truth is global online purchases have made the world smaller and possible for the people to do more competitive business than ever. Wouldn't you want to jump on the bandwagon? I think yes.
Payoneer is extremely easy to use. It is convenient, and professionals and businesses do transactions rather smoothly in a couple of working days within a compliant framework. If this is something that attracts you and the structure gives you confidence, sign up and use it.
You will not be disappointed. Trust me.
Moving on...
Yes, there is more to Payoneer vs PayPal. You are not wrong if you are wondering if I ever paid attention to PayPal as well. Of course, I did. After all - it is a pioneering online payments system, the first of its kind. Although the two products are similar, the one thing that differentiates PayPal with Payoneer is its global brand value.
PayPal is a great tool and offers an excellent service. It may not do transactions as quickly as Payoneer, and it is still one of the first companies to make global exchange possible for business owners, professionals, and freelancers. Yes, you guessed it right - Elon Musk is behind the brilliant creation.
Before I bog you down with too much information, I would like to tell you that PayPal is the second product that I plan to compare and see if it is fit for online transactions. Are you ready? Let's go!
PayPal - the faster, more natural way to get paid
Unlike Payoneer, PayPal is an old service, having been founded in 1998. With over 220 million customer accounts and over 18 million merchants, PayPal is a force to reckon with in the digital payments industry. It's incredibly easy to set up and use. Linking it with a local bank account hardly takes seconds now. Receiving money is a no-brainer.
PayPal is transparent when it comes to pricing and terms, and there is no early termination fee attached to the accounts. It can also be integrated with a large number of applications - which is excellent for businesses and large corporations where the use of the different software is high.
Unlike Payoneer, if you deal with high-value transactions, having a traditional merchant account on PayPal is much more effective. This also holds true if you run a high-risk business. PayPal is a boon for shoppers as well - making it easy for them to shop till they drop using digital money.
I know I have mentioned it before, but I'll repeat it - PayPal is applauded for its transparency which means, unlike Payoneer you wouldn't have to worry about hidden additional costs or its encryption and security system in place. Moving on, I am going to narrow down my focus and specifically talk about the business solutions offered by PayPal in this particular review. Are you ready to have a look? Let's start right now!
Features
There are some features that PayPal boasts about. Some of them are:
1) Multi-currency support
Keeping in mind the increasing global trade, PayPal supports over 100 currencies including USD, AUD, Euro, INR, Japanese Yen, and more. So if you are a freelancer working for a company in the UK, you can quickly receive your payments. Sounds good, isn't it?
2) Security key
The feature was introduced by PayPal in 2006 as a precaution against frauds and money laundering. A security key is just like a CVC in credit cards.
3) Peer-to-peer transactions
The platforms allow users to send money to others who are using some other financial service with high-powered security. It is also possible to request free payments from anyone with only an email address even if they don't have a PayPal account.
4) Merchants-friendly service
Yes, that's right! As I have mentioned earlier, PayPal allows merchants and business owners to sell and receive payments from anywhere in the world. As of today, it is the most acceptable payment method. Sending money through PayPal is considered smoother than writing checks or using an ATM service.
5) Buyer and seller features
You can connect your debit and credit cards and bank account in one PayPal account. Prominent merchants such as eBay and Amazon use PayPal, and that makes it easier for the customers to shop anywhere. When it comes to sellers, the platform offers low transaction fee against the use of cards. The user can quickly pay for online purchases without using the cards.
6) User-friendly mobile apps
Whether you are using an Android or iOS phone, PayPal has a mobile app catering to each of these audiences.
7) Easy withdrawal of funds
The user can easily convert and withdraw PayPal funds to a supported bank account in 200+ currencies.
Customers
PayPal is a great tool and offers an excellent service. It is one of the first companies to make global exchange possible for business owners, professionals, and freelancers. Whether you are looking to get paid or paying someone - PayPal makes all of that happen in a compliant framework.
If you are a business owner, you can actually integrate a lot of applications and carry out your operations smoothly - without giving any of your customers or vendors any transactional worries. After all - money is an object of emotion, and you don't want to play with anyone's feelings, isn't it?
Before I end my article on Payoneer vs PayPal, let us talk about PayPal integrations.
Integrations
PayPal being PayPal, the tool integrates with a large number of applications. From shopping carts and shipping apps to accounting software and email products - it has got every aspect covered. The list of all the integrated apps is too long, but I have tried to be as comprehensive as possible.
Here are a few of them: Magento, 3dcart, BigCommerce, Shopify, Big Cartel, Wix, Volusion, Spark Pay, WooCommerce, X-Cart, Miva, SquareSpace, Cart32, GoDaddy, QuickBooks, IWD Agency, Pinnacle Cart, Yola, Zoey, Blue Acorn, Lyons Consulting Group and more. Some of the in-store application integrations include Lavu, TouchBistro, Revel, and Vend.
Believe it or not - having so many applications that can be integrated is a good thing. It doesn't matter what eCommerce platform or accounting software you use, you will always be assured that PayPal will be to incorporate it and make transacting easier for you.
And if by chance, PayPal doesn't cover your business applications, then you can use their developer tools to create custom integrations for your website. This is just another way of PayPal to being more accessible to all kinds of companies it targets. You don't need to worry about any kind of integrations at all - whatsoever!
Pricing
PayPal doesn't charge any setup fee, annual maintenance fee, PCI compliance fee or cancellation fee for any of its services which is pretty cool! The platform is also generous in providing volume and non-profit discounts in a bid to onboard more customers.
The good thing about PayPal is that it is straightforward and transparent when it comes to speaking about transactional costs - and yes, these costs are a bit more than the traditional merchant accounts. Its pricing structure is based on a pay-as-you-go model and increases as the number of services you opt for a hike.
If you for the Pro package, you will have to pay a monthly subscription fee in addition to the standard price which is $30 per month. If you go for the Standard package, it is fine, but you will not be able to allow your customers on your web page to finish the checkout process.
Pro subscribers also get to use Virtual Terminal for accepting payments by mail, phone, and fax. If you are a business using PayPal to receive money from clients and customers, then the platform will take 2.9% of your payment plus 30 cents per transaction before putting money in your account. However, the add-ons are only on the business side of the sales; the payees are not charged anything.
Cons
Just like Payoneer, PayPal too has a flipside. Here are some of its cons:
1) Account stability issues
If PayPal notices any suspicious activity, it can withhold funds, freeze accounts and even terminate accounts as per will. If your business model is unsustainable, you could come on the radar of PayPal.
2) Inconsistent customer support
Although their email support is on point, you may find them to be a little shoddy concerning providing a phone support service. Some reps are more knowledgeable than others, and some are just plain clueless. If you are lucky, your phone call with the PayPal team will be good. Otherwise it could be downright annoying!
3) Chargebacks
A lot of chargeback complaints come from sellers such as eBay, and this could be a bane to the existence of most businesses.
Closing thoughts
I am personally of the opinion that you should give a fair shot to both Payoneer and PayPal. Sign up on both platforms and carry out transactions like you would typically do. Use the two services for three months and see which one gives you value for money, less stress while transacting cash and better customer support service. Does this sound like a plan? I think it definitely does!