Personal Features

Payoneer

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Payoneer only offers money transfer solutions for freelancers and businesses. Therefore Payoneer receives a zero score for the Individual services category. If you need international money transfer services or solutions and you are not a freelancer or a business. You should click Compare Now in the top menu. Find the best companies for individuals that support your home and destination country.


PayPal

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PayPal provides different services for personal customers from a number of countries. However, the services on offer vary from one region to another.

What PayPal does

  • International money transfers.
  • Debit and prepaid cards.
  • PayPal Credit.
  • Links multiple payment methods to your account to shop online.
  • Digital wallet to hold funds in multiple currencies.

What PayPal doesn’t do

  • Dedicated account managers.
  • Risk management tools.
  • Cash pickup.

PayPal wins!

PayPal wins by default in the individual category as Payoneer does not offer services to individuals. 

PayPal offers a great solution for online shopping by paying for goods and services with your PayPal account. Most online sellers support PayPal as a payment option. PayPal keeps all your payment details private. And, for example, you only need to update credit card information in one spot. Very handy.

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Business Benefits

Payoneer

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Payoneer specializes in providing international money transfer services for businesses, online sellers and freelancers. Payoneer offers international payment solutions for large and small businesses alike. AirBNB has partnered with Payoneer to service payments to their hosts. Small business and entrepreneurs leverage Payoneers Online Sellers integration to easily receive payments from Amazon, Wish and Shopee and many more. See a high level list of the services Payoneer offer below.

What Payoneer for business offers

  • Solutions for online sellers
  • Unique local multi-currency bank accounts
  • Mass payments
  • Prepaid Mastercard
  • Payment requests
  • Payoneer to Payoneer transfers
  • Accounting integration

What Payoneer for business doesn’t do

  • Currency hedging tools
  • Dedicated account managers for small transfers

PayPal

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PayPal provides a range of specialized services for businesses from different countries.

What PayPal for business offers

  • Make and accept international payments.
  • Solutions for online sellers.
  • Digital wallet to hold funds and transact in multiple currencies.
  • Payment gateway to accept card payments.
  • Accepts in-store payments with a card reader and a smartphone or tablet.
  • Easy accounting integration through APIs, SDKs, code samples and pre-integrated solutions.
  • Risk management through fraud and seller protection.
  • Mass payments.

What PayPal for business doesn’t do

  • Account managers.
  • Currency hedging tools.

Payoneer wins!

PayPal and Payoneer offer international money transfer for business. However, PayPal acts as a payment gateway for online sellers. PayPal can process customer credit card payments. PayPal personal account users can also use direct debit to pay for goods and services. 

Payoneer does have a payment gateway solution. So online sellers should choose PayPal vs Payoneer for online merchant solutions.

Payoneer offers many more solutions for non-merchant businesses. When choosing between Payoneer and PayPal, Payoneer is the clear choice.

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Fees & Exchange Rates

Payoneer

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Payoneer fees include transferring money out of Payoneer to local bank accounts, using their Mastercard to spend in foreign countries, and some additional fees. There are no fees for receiving money in to your Payoneer account.

Payoneer Fees

There are different fees for Payoneer services. Read the review of Payoneer to see a detailed breakdown of all the fees that can apply. Below is a short summary of the Payoneer fees.

Exchange rate margin fee - An exchange rate margin of up to 3% can apply in different circumstances such as withdrawing money and transferring balances between different currencies. You may negotiate better rates when carrying out large value transfers.

Payoneer Mastercard - Spending funds in the Payoneer account using the Payoneer Mastercard can have up to a 3.5% currency conversion fee.

Are there additional Payoneer fees?

Yes. You might need to pay fees when receiving and making payments. The Payoneer Prepaid Mastercard comes with an annual fee. 


PayPal

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PayPal fees vary based on where you live and the services on offer.

Fees for sending money within the US

Payment methodFees
PayPal Cash, PayPal Cash Plus or a linked bank account $0
Credit card, debit card or PayPal Credit2.9% of the transfer amount, plus a fixed fee

Fees for sending money overseas

Payment methodTransaction feesFunding fees
PayPal Cash, PayPal Cash Plus or a linked bank account 5% of the transfer amount (minimum of $0.99 and maximum of $4.99)$0
Credit card, debit card or PayPal Credit.5% of the transfer amount (minimum of $0.99 and maximum of $4.99)2.9% of the transfer amount plus a fixed fee

Fees for selling

Mode of sellingFees
Selling in the US2.9% plus $0.30 per transaction
Selling internationally4.4% plus a fixed fee based on the currency received
PayPal Here card reader2.7% for card swipes, or 3.5% plus $0.15 for manually entered transactions

PayPal exchange rates

PayPal adds a margin of up to 3% on existing mid-market rates when carrying out currency conversion. Combined with the fees you need to pay, the cost of sending money overseas through PayPal becomes rather prohibitive.


Payoneer wins!

PayPal’s fees and exchange rate margins are high. Sending money internationally through PayPal can cost far more than Payoneer. 

Payoneer’s fees are also on the higher side, but are lower compared to PayPal. Also receiving money through Payoneer's receiving accounts solution has no cost. While with PayPal, it’s merchant payment gateway solutions are very high to the business owner.

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Ease of Use

Payoneer

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What Payoneer does well

Sign up process - Fairly straightforward although completing the US tax form can be time consuming.

Payment options -  Bank account transfers, debit card, credit cards and Payoneer balances.

Mobile app - Available for iOS and Android. 
 

Where Payoneer could improve

Transfer speed - Up to 3 business days upon payment.

Phone transfers - Transfers can not be completed over the phone.

USA tax compliance form assistance - Completing the form as a non-US resident can be confusing. It would be of great help to provide more assistance for non-nationals to complete these forms.


PayPal

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What PayPal does well

Sign up - Signing up takes little time, and you may do so by using the PayPal website or app.

Payment options - You can fund your account and transfers in different ways such as bank transfers, debit cards and credit cards.

PayPal app - The PayPal app is available for iOS and Android.
 

Where PayPal could improve

Phone transfers - PayPal customers can not send money over the phone.


PayPal wins!

Comparing Payoneer and PayPal ease of use, PayPal wins by a nose. Both are relatively straightforward and intuitive to set up, configure and use. Payoneer’s cumbersome USA tax form requirements has resulted in PayPal winning.

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Support & Countries

Payoneer

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88

What Payoneer does well

Supported destination countries and currencies - Payoneer supports transfers to more than 200 countries and territories, in over 150 currencies.

Customer support - Customer support is available via chat, email and over the phone.

Languages - Access to the Payoneer website comes in multiple languages.
 

Where Payoneer could improve

Send from countries - As of now, customers can use the Global Payment Service to send money from the United States, European Union, the United Kingdom, Japan, Australia, Canada and Mexico.

Customer Service - There is a growing number of negative customer reviews for Payoneer. These need to be addressed and communicated through review channels such as Trustpilot.


PayPal

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What PayPal does well

Supported countries - PayPal provides its services in more than 200 countries and territories.

Multilingual website - You can use the PayPal website in different languages.
 

Where PayPal could improve

Local phone support - PayPal could do better by providing local phone support in countries with large customer bases.


It's a draw!

Payoneer and PayPal have a large global footprint of supported countries. Both score equally with customer support, acknowledging that customer service on both sides needs some work.

It's a draw!
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Draw

Trust & Transparency

Payoneer

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What Payoneer does well

  • Payoneer is fully regulated in different countries.
  • Two-factor authentication adds another layer of security to your Payoneer account.
  • High volume of repeat transfers implies high levels of trust.

Where Payoneer could improve

Exchange rate margin fee transparency - Payoneer’s exchange rates include margins of up to 3% in some cases.


PayPal

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What PayPal does well

  • PayPal is licensed to provide its services in all the regions in which it operates.
  • Dispute resolution and purchase protection for buyers.

Where PayPal could improve

Customer rating - PayPal gets a rating of Bad on Trustpilot. Several PayPal reviews written by customers highlight the company's poor customer service. None of the recent reviews have been answered by PayPal.

Exchange rate transparency - The non-transparent exchange rate margin leaves many customers wondering about the true cost of their transfers.


Payoneer wins!

Neither PayPal nor Payoneer have transparent fees within their exchange rate. iCompareFX visitors who have signed up to Payoneer international money transfer business solutions continue to use their services regularly to solve their currency requirements. 

Payoneer
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The Result

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 Payoneer

Payonner wins overall when comparing Payoneer and PayPal. Payoneer’s range of business solutions and lower fees means that Payoneer is a better choice. Saying that, Payoneer does not offer online merchant payment gateway solutions. Therefore if this is the service you need, PayPal is the appropriate choice compared to Payoneer.

Overall, if you are a freelancer or business owner Payoneer is a good choice as your business partner for international money transfers.

FAQs

Which is better: PayPal or Payoneer?

Payoneer is better than PayPal as a partner for business international money transfer solutions. Unless of course you need a payment gateway as a small online seller. In that case, PayPal is the natural choice vs Payoneer.

What is the difference between PayPal and Payoneer?

Payoneer focuses on creating integration solutions for individual foreign online seller platforms. This allows international entrepreneurs repatriate their revenue cheaper than using the online seller foreign money transfer system. PayPal's merchant accounts provide a payment gateway that a business can add their their self hosted e-commerce platform. For example, a PayPal WordPress plugin or Woocommerce. PayPal is more expensive to exchange your currency revenue to your home currency than Payoneer.