Payoneer vs PayPal – Which Platform is Better for You?
Every freelancer has to deal with financing platforms in order to receive and withdraw funds. This process is generally not fun and often is even ‘annoying’ due to the high fees and unjustified conversion rates. However, it is a mandatory tool for anyone who is involved in online businesses to have an online payment account, and thus, some payment systems can charge excessive fees and commissions.
PayPal is by far the most popular payment system and, in most cases, is needed in order to maintain an online operation. Payoneer is another great alternative to PayPal that has gained huge popularity globally, largely because it specializes in freelancers and makes online payments much easier and cheaper. So, in other words, which payment is actually better – Payoneer or PayPal?
Payoneer vs PayPal – Which payment system should you use?
This review relies on my own experience as well as online user reviews of people who have had a similar experience with both online payment systems.
Generally, there’s no doubt that PayPal is the most convenient and user-friendly payment system in the world. Much more than that, as PayPal is available in more than 200 countries worldwide, the vast majority of advertisers and employers use PayPal and are able to easily transfer and receive funds using PayPal. However, PayPal is also extremely expensive, particularly if you are using it as a gateway to get a monthly salary. For international money transfers, PayPal charges 5% of the transaction when you send money directly to another PayPal account, with a minimum transaction fee of $0.99 and a maximum of $4.99.
However, the big issue with PayPal is the conversion fee, which stands at around 3-3.75%. For those of you who receive monthly salaries online, this fee is clearly unacceptable.
Payoneer, on the other hand, is less pricey. This can be attributed to the fact that Payoneer essentially provides several bank accounts in different countries, which makes the process easier for employers and for you. With Payoneer, you can basically have an account in the US, UK, Europe, Japan, Singapore, Canada, and Australia.
In terms of cost, Payoneer’s fee structure is also much simpler and, obviously, cheaper. For example, if you are using the bank account that you received from Payoneer, you do not have to pay any fee for USD, GBP, EUR, and more. You also don’t have to pay any fees if you receive funds from another Payoneer account. However, if you get paid with a credit card or with ACH bank debits, you are required to pay a fee of 3% and 1%, respectively.
Also, there’s no doubt that Payoneer’s key strength lies in its currency converter service (0.5% when you transfer funds to your local bank account). So, if you are dealing with foreign currencies, it would be much better for you to use Payoneer.
Finally, another reason why Payoneer is, in our view, is a better payment system is the customer support service it offers. Even though it sounds cliche, this is extremely important when you deal with funds. PayPal is good, but it does not offer the same customer support service as Payoneer.
Final words
Nowadays, there are many ways to send money internationally. And, still, PayPal and Payoneer are the top leading platforms for that purpose.
Here’s the thing. Clearly, it would be best to use both payment systems in order to help employers and advertisers transfer funds to your account. And PayPal is almost a ‘must-have’ tool these days, so you need to keep it. That said, there’s no doubt that Payoneer will make your life easier in any aspect you can think of.
To sum up, forget all the PayPal vs Payoneer reviews, including this one. If you are planning to make a living or an additional income from an online business, then you need both payment systems. But, if you have a monthly salary and you get paid with another currency than your local currency, then you need a Payoneer account. To open a Payoneer account and get a reward, click on this link.
