Sending and receiving money from other countries used to be a big problem. Banks charge outrageous amounts for processing such cross-border transactions. Plus, it takes a long time to complete.
Today, we need not worry about this problem anymore. Online payment services have made money transfer so much easier and faster for us.
They have changed the landscape when it comes to doing business with employees and partners from all around the world.
Several online payment services have been introduced in the last few years. Among all them, Payoneer and PayPal remain to be the biggest and most trusted names.
Payoneer and PayPal each has their own strengths and weaknesses.
To help you identify which among the two can help your business better, here is a comparison of the pros and cons of each one.
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Payoneer was founded in 2005 and currently has over 400 million users across the world.
The company specializes in money transfer – both domestic and international. Here are a few more details about their services:
Make and Receive Payments:
Sending and receiving money from one Payoneer account to another is quick and easy. You can send money in different currencies and withdraw funds from your bank of choice. These transfers and currency conversions might come with a fee.
Send Payments in Bulk:
If you are an employer with a remote team, this feature might come in handy for you. Using this feature will help you save valuable time.
Schedule Automated Payments:
As long as you have money in your Payoneer account, you can schedule automatic payments to your employees.
How to set-up a Payoneer Account
Setting up a Payoneer Account is free and easy.
Simply go to the Payoneer website, click on “Sign Up” and provide the required details.
Before you can start using your account, however, Payoneer needs to run a credit check to see if you are qualified to use a Payoneer Prepaid Mastercard.
This check usually takes 2-4 days. After you have been approved, you can immediately start sending and receiving payments.
The Payoneer Prepaid Mastercard will be delivered straight to your home.
You can check the status of the delivery through the same website.
Pros of Using Payoneer
While Payoneer is not perfect, there are many reasons why a lot of businesses opt to use this money transfer service. Here are some of the reasons:
Low Transfer Fees for Transactions within the US:
Transferring money within the United States may be free, or may come at lower rates compared to other money transfer services.
Easy Access to Funds:
Payoneer funds can be withdrawn in banks from all over the world. Fees may apply when doing so.
Easy Access to the Site:
Aside from their website, you can use Payoneer through their official Android and iOS apps.
Cons of Using Payoneer
Likewise, here are some downsides to using Payoneer:
Annual Fee for the Payoneer Mastercard:
Every account with Payoneer comes with this card. The card makes it easier for users to access their accounts, but it also comes with an annual fee of $29.95.
Low currency conversion rates:
When converting from one currency to another, Payoneer applies a rate that is much lower compared to other money transfer services.
They take an average of 2% cut, which can be much when you add up all your conversion transactions in the long run.
PayPal is probably the most recognized brand when it comes to money transfer services. It was one of the first ones ever introduced, having been founded in 1998.
Millions of people across the globe use it for their business and personal transactions, including shopping.
Here are some of the services that PayPal offers:
Send and Receive Money:
PayPal facilitates both domestic and international money transfers. Fees may apply, depending on the transaction type and location.
Accept Payments in eCommerce Sites:
If you run an online business, integrating PayPal into your website is a must. PayPal helps facilitate payments for your buyers with or without a credit card. Fees may apply when you use this service.
Setting up a PayPal Account
A PayPal account is not necessary if you want to use their services.
But, it is still good to have one. Signing up for an account is free and can be done in a short time.
Simply head to their website, click the “Sign Up” button, and fill in the necessary information.
Your account can immediately be used after completing the sign-up process. Don’t forget to link a card to your account. This will help you complete future transactions faster.
Pros of Using PayPal
As the most trusted online money transfer service, using PayPal has several pros:
Easy to Use:
Even though it is your first time using the service, you won’t feel intimidated by PayPal.
The interface of their website is straightforward, you will definitely know where to find the buttons and services that you need.
They also have a mobile app that is just as easy to use.
Outstanding support team:
There are several negative stories about how PayPal users lost their money while using the service.
To improve on this, PayPal has a dedicated support team to make sure that no user will ever worry about the security of their money.
They also have a community forum which holds a rich database of problems encountered by other users and how to fix them.
Cons of Using PayPal
Here is one of the most recognized downside of using PayPal:
Currency conversion fees:
A fee of 2%-2.75% applies for every currency conversion.
This may be quite high, especially if you are paying remote employees from other countries.
Payoneer vs. PayPal: Which Is Better?
The answer to this question depends on your need. Both Payoneer and PayPal are trusted companies in the industry, and it will probably remain this way for a long time.
Don’t be afraid to do a bit more research and assess the strengths and weaknesses of the two options. You’ll soon be able to see which among them is a better answer to your needs.