PAYPAL VS PAYONEER, WHICH IS BEST?
Paypal and Payoneer are both well-known companies for online money transfer. If we are a true blogger or online marketer,
Paypal and Payoneer are both well-known companies for online money transfer. If we are a true blogger or online marketer, then we must have used these 2 digital payments to transfer or receive money from all over the world.I have been blogging since 2016. During the initial days, I had limited options as I was not aware of any source to receive international payments.
The only option that was available before was PayPal. I remember when I made my first affiliate sale from my blog and that was the first time I used digital payments.
As I started learning and making more money, I came across some other payment services like Payoneer and Transferwise for international transactions.
Both Paypal and Payoneer are popular companies when it comes to sending and receiving money internationally. Till now, I have been using digital payments to send and receive funds. But what made me think about differentiating between Payoneer and PayPal is their transaction fees.
In this article, I will show you some of the key differences between Paypal & Payoneer with some examples that will help you decide which one you should use for global payments.
Payoneer vs Paypal: Which is Better?
I started using digital payments early in my blogging career and I started using Payoneer as soon as I started receiving money from Amazon affiliate programs. Since then, I have continued to use both services to receive and send international payments.
While using them, I found both services to be reliable, secure, and offer a good customer experience. However, there are still a few things that set them apart. Here I will give you a breakdown with some examples.
How does PayPal work?
To get started with digital payments, you need to create a Paypal account and it doesn’t even require you to enter any bank account information. However, if you want to receive payments directly to your local bank account, then you need to link your bank account with PayPal.
Your email address will be your Paypal address that will be used to send or receive payments. When you need to receive payments from clients, you simply provide your PayPal address to that person.
Paypal supports multiple currencies for money transactions.
After receiving the payment successfully, you can save your money to your digital payment account for future payments or you can withdraw it directly to your local bank account. It usually takes 1 to 7 days to transfer the money to your bank account.
Note: In India, you cannot save balance in your Paypal account due to government regulations. Your balance will be automatically withdrawn to your bank account within 24 hours.
How does Payoneer work?
To get started with Payoneer, you need to register a Payoneer account and link it to your local bank account. When you receive a payment, it is simply transferred to your local bank account.
Payoneer will provide you with unique bank account details in the US, Europe, UK, Canada & Japan to receive International payments.
Payoneer Global Payment Service
I like this feature especially because of the Amazon affiliate program. Amazon affiliates provide a direct deposit feature to help you transfer money to a US bank account.
You just need to enter your US Payoneer bank account details and Amazon will deposit the money in USD to your US Payoneer account. Then Payoneer will convert and transfer the money to your local bank account. Cool, right?
What is the difference between PayPal and Payoneer?
Payoneer and Paypal both have some advantages and disadvantages in certain cases. PayPal is widely accepted internationally. Most of the bloggers, affiliate marketing companies, and eCommerce websites use Paypal for money transactions.
Although Payoneer is not widely accepted, whenever you have an alternative option to accept other payments, it is Payoneer.
After using both, compare their transaction fees. In most cases, you will find that Payoneer will save you more money than Pal.
Let's take an example.
When I use PayPal
When I receive an amount of $100 from a client, I use digital payments to receive the money.
Paypal payment receipt
Paypal charges 4.4% + $0.30 of the transferred amount and they also charge a currency conversion fee of 2.5%. Their currency exchange rates are very low when compared to the mid-market exchange rates.
For example, if 1 USD = 67.98 then paypal calculates the currency exchange rate is only 1 USD = 62.26 INR.
So, I finally received: $94.45* 62.26 = 5,880.86 INR
When I use Payoneer
When I receive $100 in my Payoneer account, the transaction amount to my bank account is completely different from the Paypal scenario.
Payoneer does not charge any receiving fees and their currency exchange rate is only 2% by market standards
Total I received: $100*67.26 = 6,726 INR
So there is a difference of almost 846 INR by withdrawing my online payment from pay
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ECONOMIC AND BUSINESS