PayPal vs Payoneer – Which Is the Better Payment Platform

You have a skill that you are monetizing if you are interested in this article. After monetizing your skill and earning from it, the next checkpoint for you is receiving payment from your clients. It’s pretty easy if you are in the same country but what happens when working with foreign clients? You will be using different currencies, and this will serve as a barrier to receiving payments after you complete jobs. However, there is a great solution, and the good news is that you can benefit from this solution. It involves implementing payment platforms for your business so let’s see the best choice with the PayPal vs Payoneer matchup.

Importance Of Global Payment Platforms

Payment platforms and gateways have made life easy for several business owners helping them expand their business across countries. These payment platforms make it easier to receive payments from people residing in other countries removing the currency barrier. They support multiple currency transactions and act as a virtual bank account, letting you hold these currencies. You also get the freedom to make payments with these platforms, but they have several restrictions. However, it doesn’t rule out that these platforms have brought a solution to the challenge of charging foreign clients. Among the several payment platforms you must have come across, two popular brands top the competition. Let us check out the better payment platform with the PayPal vs Payoneer matchup and see its reasons.

Things To Know About PayPal

PayPal stands among the popular methods of making payments to foreign clients, and it still stands at the top. Several people implement PayPal in their business since it’s convenient to connect your website to the platform for receiving payments. PayPal makes transactions easier by offering you a card system separate from your regular bank cards for payments. You are also not restricted to using it as a bank since you can get funds to your bank account. The payment platform ranks above many other platforms and banks since it has a reliable security system that improves over time. One example is that you don’t fill in your card details every time you make a purchase, making transactions safe. It also protects buyers with a safeguard system that gets you a refund when the purchase fails.

Pros

1. PayPal prioritizes security and implements high-quality encryption methods to achieve the best security which keeps your money safe.
2. It has an interface that is pretty easy to use and navigate with an attractive design.
3. Unlike other payment platforms you might know, you get to make transactions to family and friends without paying a fee.
4. The payment platform gives you purchase protection and helps you recover your money if the goods are below standard.
5. You can enjoy access to this top-quality platform on every device regardless of the type.

Cons

1. It has a reputation for restricting some countries, preventing them from receiving payments, making payments, or both.
2. They have a long history of taking aggressive actions on accounts by freezing them at every little notice of suspicion.
3. Using PayPal is free for family and friends transactions, but it charges you for every business transaction you make.
4. Transactions to bank accounts span several business days, and instant access will attract a 1% charge to complete it.
5. Several clients still refuse to use the PayPal system, which means you get to lose that particular sale to them.

Things To Know About Payoneer

Here we have the Payoneer brand, another payment platform that has saved clients and businesses since its creation. It is a popular competitor to PayPal and always appears in discussions relating to foreign clients and making payments. Many people prefer it to its counterparts, but some refuse to give it the praise it deserves to date. Payoneer allows you to receive and send payments both individually and as a business regardless of your location. It has an inbuilt feature that enables companies to send invoices directly to their customers from their remote locations. It doesn’t function as a POS service, so your customer needs to initiate payments after making a request. Unlike many other payment platforms that hold funds, Payoneer lets you use the funds directly with card or fund banks.

Pros

1. It is your best choice if you aren’t offering services that require card-based payments since they charge less.
2. General international payments also attract fewer charges, mainly if both parties use Payoneer accounts for that particular transaction.
3. The service of this payment platform spans over 200 countries, so you are guaranteed to enjoy its benefits globally.
4. You get to enjoy the free invoice service that you can send to customers after completing a business transaction
5. Processing withdrawals to your bank account is faster than many other payment platforms since they don’t hold funds.

Several popular freelancing platforms integrate Payoneer as one of the payment platforms to use when withdrawing your funds.

Cons

1. There are different fees for different transactions, so you will need to know which fee is attached to each transaction.
2. You might experience restrictions like account freezing or termination if their system flags your account as suspicious or fraudulent.
3. Payoneer Prioritized business transactions, so it is not the best choice if you make transactions between family and friends.
4. There are limits on your transactions, especially large-scale transactions that go over $100k for Payoneer customers monthly.
5. It has a lot of verification procedures that you have to complete when you receive payments with the platform.

Conclusion on PayPal vs Payoneer

Payment platforms bring the solution to help you receive payment from every country, even without traveling there yourself. However, many of these payment platforms place different restrictions on their services, so you need a better choice for business. PayPal offers you one of the best security services, but not every country has that access. On the other hand, Payoneer is more lenient in providing its services, but it doesn’t offer features like its counterpart. Your choice should depend on which platform is accepted in your country and still gives you the best business benefits.