PayPal vs Payoneer. These two are the most popular payment methods for freelancers, with each one offering distinct advantages and disadvantages to consider. In this article, we’ll look at these two giants of online payments and see how they stack up against each other in terms of their functions, fees, reliability, security, and more. This should help you decide which method is best for your business and your needs.
Contents
How do PayPal and Payoneer work?
Payoneer and PayPal are two different ways of getting paid for work that you do as a freelancer or contractor. Both offer similar services but there are differences, which we will discuss in greater detail below. The first thing to note about both services is that they’re international-friendly; if you’re working with clients overseas, then either service could be a good option for you. In addition, both services have fraud protection built into their systems meaning that neither company can charge your account without your permission.
ALSO READ: Explained: How Card Payments Secured With 3D Secure Work
Advantage of PayPal
PayPal can be extremely advantageous for many reasons, but one of its biggest selling points is that it’s a trusted and easy-to-use platform that can integrate with other apps you use frequently on your computer and smartphone, like Gmail, Yahoo Mail, and Salesforce, and more. PayPal also offers simple merchant services that let you set up an online store within minutes.
Paypal holds a 50.32% market share of the online payment processing industry.
Disadvantage of PayPal
If your business doesn’t have a high volume of transactions or a consistent flow of customers, it might not be worthwhile to invest in additional services to expand your footprint because PayPal charges merchants fees for every transaction whether it’s $1 or $1 million!
Payments via PayPal are limited for non-verified accounts, including a $10,000 cap on individual purchases. The PayPal Payouts API supports up to 15,000 payments/files, but UI only 5000. This means determining why a payment fails is difficult.
Another issue with PayPal is that sometimes accounts are put on hold without prior warning. Users are prone to loss of money when this happens.
In some countries such as Nigeria and Uganda, you can not withdraw or receive money from your PayPal account.
Advantage of Payoneer
Payoneer offers more comprehensive coverage than PayPal does. If someone makes an unauthorized charge on your credit card through Payoneer, you won’t have to pay anything because they will cover all costs associated with fraudulent transactions.
ALSO READ: How to use the Jumia payment voucher code
Disadvantage of Payoneer
It does not have as much coverage as PayPal in terms of the user. The Payment platforms that accept the mode of payment are not as many as those PayPal.
Are there alternatives available to me?
We’ll cover two options i.e. Wise and Skrill. The services may not be available in all countries around the world so if either service isn’t available in your country, just visit their websites to find out about an alternative that is supported locally or one that offers services similar to those discussed.
ALSO READ: How to Schedule Payments And Transfers Using MTN Mobile Money
A table summarizing the differences between Paypal and Payoneer
| Payoneer | PayPal | |
| Receiving Cost | Free from another Payoneer account or 1% via ACH and 3% via credit card. | 2.7%-2.9% plus a fixed fee. |
| Sending Cost | Free from another Payoneer account or 1% via ACH, 2% to another bank account, and 3% via credit card. | 2.7%-2.9% plus 30 cents per transaction. |
| Speed | 1-2 days | 0-3 days |
| Mobile App | Yes | Yes |
| Currencies | 150 | 26 |
| Debit Card | Mastercard ($29.95/yr) | Mastercard (free) |
| International Payments | Supports 150 local currencies and 200 countries. | Supports 26 local currencies and 200+ countries. |
| Taxes | Tax agreement with the IRS | No tax validations |
| Mass Payments | Automated batch-pay up to 200. | PayPal Payouts up to 10,000 |
| Business Capital | Merchant cash advance up to $750,000 with Amazon and Walmart. | PayPal Business loan with amounts determined by time in business and revenue. |
What is the best choice?
Both PayPal and Payoneer are great options for sending money to international recipients, but there are a few things you need to know before deciding which one to go with. Each service has its pros and cons, but ultimately it all comes down to your specific needs as a business owner when it comes to getting paid by overseas customers and suppliers.