We are in 2017 and have already minimize the complexity of getting products and services by using the power of internet. Today we have online marketplaces like Amazon.com, it's needless to say that now we can get anything with some effortless clicks from anywhere.
On this occasion, we need to pay or get paid by people or companies world wide. To make online payments there are many online payment processors are available, but PayPal is the first one which arrives into mind whenever we talk about online payment processor. You may already know about paypal and these is not surprising if you already has a PayPal account. Today i will show you some key facts, why you should use Payoneer along with PayPal to make things easy. Also, here I will reveal pros and cons about these payment processors.
Things to know before diving into main comparison
Since I have entered into digital world I am using PayPal to get paid from my clients. Although, it's not available here in Bangladesh, one of my relative who were in USA, I requested him to open and verify a PayPal account for me. Payoneer is well supported here but was close their service in India for a while and now Payoneer is also available in India with some restrictions and limitations.
PayPal was founded on 1998 by some innovators and quickly grown with their flawless service. Payoneer is not that much old as PayPal, Payoneer started their service on 2005. Payoneer has a mission " To empower global commerce with their innovative cross-border payments platform " which is mentioned in their websites about page. I think they have gain 75% success already with 210+ supported countries and 150+ currencies and having 2000+ partners while PayPal supports in 202 countries and 25 currencies.
PayPal vs Payoneer : Here is the complete comparison between these payment processors
As you already knows that PayPal and Payoneer both are well established and trusted company. The main moto of writing these comparison between them is to aware you about the features they have and to reveal the flexibility level.
Sign up processPayPal :
Signing up in PayPal is quite an easy task. After singing up you have to verify your identity first. You just need to put your credit card details in order to get verified. PayPal will deposit or charge a small amount from your card and you just need to put these exact numerical amount.
Signing up and get verified by Payoneer is much easier than PayPal. You just need to put your government issued national id card number or your passport number to get Payoneer debit card at your door. It typically takes 7-14 days to arrive depends on your geographic location. I got mine in 11th day after signing up. After receive your card you need to activate it by putting card number in your Payoneer dashboard. And you are all set to get paid.
Transaction FeesPayPal :
There are no annual fee in PayPal.
In USA receiving and sending money is totally free unless you use debit or credit cards. There are a flat fee of 2.90% + $0.30 cents to process transactions through cards for US citizens inside USA. If any currency conversion occurred during transaction process, there will be an additional conversion fee charged. In personal account transfer between paypal to paypal, you can pass these fee to receiver and he can refuse the whole payment if he doesn't want to pay the fee.
You might be charge between 3.90% to 7.40% fee depends on many factors for the transactions outside USA. You can get more information about transaction fee here.
There are two types of accounts are available in Payoneer. First one is only having an e-wallet without any physical or virtual debit card which has no annual fee, and the rest one is having a physical Payoneer debit card to use globally which charge you $29.95 yearly fee. Though it is free to sign up and get plastic debit card in Payoneer, they'll charge these annual fee from the first payment that you receive or loaded up.
You can get a complete pricing and charges list inside your Payoneer dashboard. Here are some common fees that you should always keep in mind. $3.15 will be charged every time you withdraw money from ATM. $12.95 will be charged when you request a replacement of your debit card if its get stolen or missing. $1 will be charged every time when you check your debit card balance in ATM or if an ATM decline a transaction then $1 will be charged. Get full information about transaction fee here.
Compared to PayPal, Payoneer is much profitable when its about a big transaction. Because it charges a fixed amount of fee on withdrawal unless your transacted currencies aren't same.
Online UsagePayPal :
You may already noticed, there are a lot of websites has PayPal as their payment processor and you just need to sign in to your dashboard to makes a payment. The best thing about PayPal is, you don't have to have balance in your PayPal account because it will automatically charge and give payment from your linked bank account or from your linked credit card. Online purchase is always free unless your transaction has different currencies.
When you will signed up in Payoneer, they'll issue and shipped a plastic debit Mastercard to your address. These is needless to say what you can do with a Mastercard. Online purchase is cost free in Payoneer also unless there are a conversion needed. In some places you couldn't find PayPal but you'll never get stopped with a Mastercard in hand.
Payoneer also provide 3 different bank account details to every users to get global payments from clients who wants to pay you via bank transfer. These option is actually helpful for every affiliate marketers.
Withdrawal money into local bankPayPal :
Withdrawing money via PayPal is a quite lengthy process. PayPal hold the money up to 72 hours before releasing it toward bank. Overall it can takes 4-6 days to arrive money in your local bank.
You can easily request an withdrawal after adding your local bank details. Payoneer withdrawal takes 2-5 days to arrive in your local bank. My own experience with Payoneer says it doesn't takes more then 3 days.
Affiliate & Referral ProgramPayPal :
These is sad that PayPal doesn't have an affiliate or referral program for their customers.
Payoneer has a great affiliate program for their users. Payoneer paid $25 bonus both when your referred person will load or get $100 payment in their account. If you are interested in affiliate marketing, I suggest you to use Payoneer refer a friend program instead of applying for their affiliate program again. Both are similar and commission/bonus are same.
PayPal & Payoneer both are trusted and well established company. Also, their customer support section has minimum issues. But, in some points we've got Payoneer more flexible and cheaper than PayPal.
When it comes to withdraw a big amount of money, Payoneer would save up to 70% fee. So, i personally recommend to use Payoneer more frequently than PayPal. In online affiliate marketing and freelancing, Payoneer can be your one stop solution because almost all major affiliate program providers and online job marketplaces has Payoneer as their pay out option.
Share your own experience with these two payment processors or ask any question that arrives into your mind by putting a quick comment below.