Searching for the right money transfer provider for your international payment needs? Take a look at our comparison of Payoneer and PayPal to see the benefits that they offer, as well as potential disadvantages of their service.
Payoneer
Established in 2005, Payoneer is an online currency exchange broker that has accounts suitable for both the personal and small business market. However, Payoneer isn't able to handle large transaction amounts, such as a house purchase or regular payments such as a pension.
If you have a personal account, you cannot make transfers via the platform, only receive payments to a bank account, onto a Mastercard or into an e-wallet, making this a popular method to be paid from clients. Fees are charged on taking cash out at 2% and 3% on Mastercard payments. Note also, there is a maximum withdrawal limit of $5,000 per day (split between withdrawals and buying items online).
PayPal
While you may not think of Paypal as a traditional foreign exchange payments provider, if you run any kind of business that trades or exports outside of the UK (or any country for that matter) you may already be using Paypal to support those payments. It's a global payments platform business, that does not offer face to face meetings or personal account management, with the lack of customer support being cited frequently in negative reviews.
Accounts are free to set up, although there are fees involved if you run a business account and want to set up a regular frequency of payments out of the account. There are also fees associated if you make payments by direct debit/credit card during a foreign currency exchange transaction as well as the fees for the currency conversion. Fees are pre-advised by Paypal; we have referenced them in the section below but they are subject to change.
While Payoneer boasts a 4-star rating on TrustPilot across more than 48,000 reviews, Paypal has a low 1-star rating, with reviewers citing poor customer service and issues with the company's app.
Payoneer Features
Small businesses and personal accounts
Personal accounts cannot make transfers, only receive them
Open an account in one of four currencies (or more if you need) EUR, GBP, USD and YEN
You can use it like a bank account and use the card to make purchases online
Maximum daily withdrawal limit is $2,500 cash and $2,500 for purchases
Paypal Features
Trade globally – buying and selling online and collecting/making payments through their platform
Easy to access and use online platform
You can make payments with one-touch and if you have your account linked to your bank account, you don’t have to go in and transfer funds, Paypal will action this automatically
Buyer protection, fraud protection and data encryption. Looks more closely at how transactions are being carried out.
Paypal app for on the go payments
Their website is translated into a number of European languages and Japanese. All other sites are in English
Mastercard available for business customers
Good option for freelancers being paid internationally
Receive payments via debit card
Bank account offered
Not for larger businesses
Takes longer than Transferwise for an account to be opened
Personal accounts cannot add money to the platform and make transfers, they can only receive money paid from another person or company
Varying tariff plans available.
Extensive integration.
Developer Tools.
Universal payment system.
Problems with account reliability.
Poor customer support.
Not intended for high-risk business.
The relatively high cost of services.
Global presence
Payoneer and Paypal have offices globally.
Payoneer handle 150 currencies across more than 200 countries, but they are a very specialist currency exchange provider.
Paypal can accept over 27 currencies and make transfer payments to over 200 countries.
OFX provides secure and speedy international money transfers to over 300,000 people in 55 currencies at better-than-bank rates.
Average of the top US Banks costs as compiled by our own FXC Intelligence group. For more details on the how the bank price comparisons are calculated that include Bank of America, CIBC, Capital One, Citigroup, HSBC Bank USA, JP Morgan Chase, PNC Financial Services, Santander USA, The Northern Trust Company, Toronto Dominion Bank USA, Wells Fargo, see our IMTI page.
Ease of use
They both have an app which is compatible with IOS and Android.
Payoneer
An easy solution if you are being paid overseas - India, Ukraine, Russia
Similar to Paypal in its application
Receive payments into an e-wallet, bank account or prepaid Mastercard
Manage your account through an IOS app
Paypal
Easy to access website, many places accept or offer Paypal as a method of payment
Quick log in and one touch payments
IOS and Android apps
Link Paypal to your Slack account and send money to co-workers and friends
Security
Payoneer is regulated by the FCA as a Money Services Business but Paypal is not regulated by FCA. Since Paypal moved its head office outside of the UK, it is no longer regulated by FCA. This means that it cannot provide regulated services and products in the UK.
Online security
Payoneer offer encrypted passwords to access accounts, strong encryption around data transfers and firewalls.
Paypal offers a buyer’s protection feature, fraudulent protection and data encryption on every transaction.
FXcompared.com is an fx money comparison site for international money transfer and to compare rates from currency brokers for sending money abroad. The website and the information provided is for informational purposes only and does not constitute an offer, solicitation or advice on any financial service or transaction. None of the information presented is intended to form the basis for any investment decision, and no specific recommendations are intended. FXC Group Ltd and FX Compared Ltd does not provide any guarantees of any data from third parties listed on this website. FX compared Ltd expressly disclaims any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from (i) any error, omission or inaccuracy in any such information or (ii) any action resulting therefrom.
