With the advent of the century of total digitalization, the word "money", having left its former purpose, takes on a new look. And every day many people are rushing around in search of various financial instruments to solve their problems. Among the main ones, of course, is the reliable IMT (International Money Transfer) at hand. PayPal and Payoneer Just like that. Immediately the worm of curiosity and commercialism starts working hard, trying to figure out which one is better?
Payoneer (PAYO) and PayPal (PP) comparison
Comparing these two is an empty joke. It's like comparing a car to a motorcycle: it seems to growl, it goes - but the thrill is different. While one is wow, represents new innovative digital fintech companies, the other is wow, is a veteran player, has a huge reputation and is a recognized player.
However, it is Wow that has the upper hand when it comes to international money transfers. It offers more attractive fees and exchange rates, and its geographic coverage can rival PayPal.
They are not the only international money transfer services available in Ukraine, but they are the most popular and in demand.
What is Payoneer?
It is not an international money transfer service for individuals. It is an online payment service for professionals. It allows them to make online payments and invoice clients abroad.
Offers worldwide money transfer services for businesses, prepaid cards, and multi-currency accounts.
Tariffs and fees
The commissions are divided into several sections, as described below.
1. Receiving payments
- Registration is always free and takes 10 minutes.
- From client to client system: free of charge
- Through other recipients' accounts in the Global Payment Service: free in EUR, GBP, JPY, AUD, CAD, MXN, or 0 to 1% in USD
- Marketplaces: installed by everyone personally.
2. Conversion
- Currency conversion is 0.5%. The full amount of the exchange rate difference is reflected in your account for each transaction.
- Withdrawal in local currency: €1.50 and USD.
- Withdrawals in other currencies: up to 2% mark-up to the market exchange rate.
3. Card
- A transaction made directly with a Payoneer prepaid Mastercard is a Mastercard exchange rate. The resource then adds a surcharge of 0.5 to 3.5% depending on the currency used.
- Account maintenance fee – 29.95 $.
- No commissions for transactions within the country
What is PayPal?
PP is the undisputed leader in the field of online payments, also offering international money transaction services for professionals and individuals between account holders of the service.
Offers the following services:
- Money transfers (to individuals and legal entities) to domestic accounts
- Online payment service
- Integrating PPl API on e-commerce sites
- Multi-currency accounts and cards are not available.
Transfer fee
PP does not charge any fees within the same territory - it is completely free, unless you pay with a debit or credit card. However, this often happens even with traditional banking institutions.
How long does an international money transfer take?
Domestic transactions of the former are almost instantaneous. It takes 2 to 5 business days to reach your bank account after receiving confirmation of the transfer. This may depend on the transfer route. For example, between different regions of Ukraine it may take 2-3 business days.
The latter's transfers are instant as they are intended exclusively for platform account holders.
How secure is the service?
The former is licensed and regulated by financial institutions in the US, EU, Hong Kong, India and Japan.
Second, the company is listed on NASDAQ, authorized and regulated by many financial institutions. Maximum security. No exchange of bank details during transactions (only an email address is required).
How many countries does it cover?
- The first one carries out professional transactions and invoices in up to two hundred countries, 150 currencies and 35 languages.
- The second allows you to transfer money to more than 200 countries in 75 different currencies.
What customer support options are available?
It is not uncommon to encounter problems when using online money transaction platforms. Below is a brief overview of the customer support offered by payment systems:
- The former offers 24/7 support in over 35 languages.
- Secondly, email and phone support received a low rating on TrustPilot.
How good is the customer experience?
- Payo apps are available for Android and iOS, but offer relatively limited functionality.
- PP apps for iOS and Android are very intuitive and highly rated by millions of users.
User opinion
- The first has an average rating of 4.4/5 and 26,419 user reviews and is a Forbes Top 50 Fintech company.
- The second one has a rating of 1.4/5 on TrustPilot. The user reviews on TrustPilot are very poor.
Advantages and disadvantages
Of course, they have their pros and cons of the money transaction services they offer. Only those who do nothing have them. But let's get back to business:
PAY
Advantages
- Numerous payment and invoicing services for professionals
- Receive and send currency worldwide for free
- Coverage in 200 countries worldwide
- International invoicing and direct payments
- Low exchange rate commission
- Free domestic transactions
- Completely safe resource
- Customer service 24 hours a day in thirty-five languages.
Disadvantages
- No services for private clients
- Currency conversion only for services received on account
- Many additional fees.
PP
Advantages
- A platform for fast, free domestic payments
- Largest online payment operator (including eBay)
- Wide geographical coverage
- Services for individuals and legal entities.
Disadvantages
- Transfers only from one PP account to another
- Transfer fees are prohibited.
- Lack of transparency regarding exchange fees
- Very low rating on TrustPilot
- It is difficult to contact support.
Who is suitable for which services?
When choosing, it is important to consider the features of each platform to choose the one that best suits your needs. PP is ideal for those who regularly make online purchases or make small transfers between individuals. This system has become popular due to its ease of use and wide distribution. It carries out transactions in two hundred countries and supports more than 25 currencies. It will be especially useful for those who work as a partner of international online stores or websites for freelancers. Its important advantage is the immediacy and availability of internal transfers.
On the other hand, Payo is more geared towards businesses and freelancers who need to work in multiple currencies and receive payments from companies or clients around the world. It offers a card that allows you to withdraw money from ATMs and make purchases in stores, which is very convenient for travelers or working outside the country. In addition, the resource has more favorable conditions for large amounts of interbank transfers.
So, RR is better suited for convenient everyday online payments and small transfers between individuals, while Payo will be a better option for working internationally, receiving larger amounts, or doing business abroad.
Conclusion
The choice between these platforms depends on your needs and tasks. If you need a universal service with a large number of integrations, choose PayPal. If you are looking for a system with favorable rates for international business and freelance work, you should pay attention to Payoneer. Assess your needs, compare the capabilities of both services, and make a choice that will help you manage your finances effectively.
