Payoneer vs PayPal: What’s Best for International Payments

paypal vs payoneer

When it comes to making international payments, the names of PayPal and Payoneer arise to the top. These are two of the best electronic payment service providers, making the lives of freelancers and businesses easier.

Both the platforms are into the market for more than a decade now and have established trust among the users. But both the platforms are different from each other, in terms of commission charges, ease of use, policies, timing, etc. Before choosing between PayPal and Payoneer, it is important for you to go through features, functionalities, and other parameters, so that you make a right decision.

Before going for the in-depth comparison, here is a brief about both the platforms:


PayPal is the oldest payment processor for online transactions in the market. It has been around since 1998. Today, it is being used by online vendors, auction websites, freelancers, individuals, SMBs, VPN solution providers, as well as for several commercia purposes. It provides easy international transactions with one-click processes. PayPal is currently available in around 200 countries with support for 25 currencies.


Payoneer is also an established player in the financial services market. Established in 2005, it is enabling online payments seamlessly. Payoneer is especially popular among brands that need B2B payments across borders. It is being used by big brands, ecommerce marketplaces, and freelancer platforms, like Google, Fiverr, Airbnb, Walmart, etc.

PayPal vs Payoneer: Which is better?

Following is the comparison between PayPal vs Payoneer, on the basis of various parameters.

1. Fees

Both the platforms charge some nominal fee for every transaction. So, none of the platforms are free to use. As compared to PayPal, the Payoneer is relatively less expensive in terms of fee charged per transaction. You can find the fee details below.

  • Payoneer fees

The fee charged by Payoneer depends on the mode of payment and other factors.

For the payments between a Payoneer customer to another, there is no fee involved. However, the free service is applicable only when the transactions are in these currencies: USD, EUR, GBP, and JPY.

Payoneer is also free for the payments received by local receiving accounts, provided that the payments are in these currencies: USD, EUR, JPY, CAD, GBP, AUD, and MXN. So, the service doesn’t involve any fee for local receiving accounts in the US, UK, Europe, Japan, Canada, Australia, and Mexico.

Payoneer provides a billing service which allows businesses to get paid directly by the customers to the bank accounts. For the credit card transactions, it charges a 3% fee with support for all the currencies. On the other hand, it doesn’t involve any fee for ACH bank debit in USD currency.

Whereas, if Payoneer is being used to receive payments via online marketplaces and networks like Fiverr, Upwork, Airbnb, Wish, then the fee charged will depend on the respective website. The banks may charge an additional fee, landing fee, or intermediary fee for all the transactions. So, check the fee properly if you are building a website and integrating any of these platforms for payments.

  • PayPal fees

On the other hand, PayPal doesn’t cost any fee for the payments from PayPal account or bank account in the US. For the payments from debit cards, credit cards, and PayPal credit, there is a 2.9% fee charge.

For the payments from the US to any other country, the fee is variable between $0.99 to $4.99, depending on the country and amount. This fee is charged for payments from PayPal balance and bank account.

In case the money is sent from credit/debit card or PayPal credit, the platform will charge an additional 2.9% fee of the amount along with the fixed fee on the basis of currency.

2. Ease of use

Talking about the usability and user experience of PayPal and Payoneer, both the platforms have done a good job. But if we have to compare which is better, then it will be Payoneer.

  • Payoneer

If you are someone who has got to transact often, then Payoneer will be your preferred choice. It’s because the platform has got some automation which helps in automatic conversion of currency and then send it to bank.

  • PayPal

Whereas, PayPal is not that automated yet. It also converts the currency, but mostly it has to be done manually. Moreover, the withdrawal limit per day is higher for Payoneer. So, for people who has a large number of daily transactions, Payoneer will be a great choice. For small and medium amount of transactions, PayPal is good.

3. Security and safety

Security has always remained the biggest concerns for every online business. The attackers are always looking for vulnerabilities to hack the systems and use it for their own benefits. Security is all the more crucial when money is involved. So, the platform used for payment transfer should be highly secure.

When it comes to security of the platform, both PayPal and Payoneer ensure that they are compliant with all the regulations. These platforms are highly secure and follow the best security practices. But if we have to choose the one, it will be PayPal. This is because PayPal is a publicly traded firm.

4. Time taken for money withdrawal

How much time do PayPal and Payoneer take if you have to withdraw money to your bank account? This is an important factor for everyone because people don’t like to wait for their own money.

So, both the platforms take varied time to withdraw money from online wallet to the bank account. Once the transaction has been initiated, the PayPal generally takes 2 to 4 business days to process the money transfer from wallet to bank.

On the other hand, Payoneer generally takes up to 24 hours, i.e. only one day to complete the withdrawal transaction once initiated.

In certain cases, you are also allowed to withdraw the money in shorter time, but you will have to pay a higher fee for that.

Wrapping up:

We hope this comparison between PayPal and Payoneer helps you to make the right choice. Both the options are the best in the market, but have got certain pros and cons. Whether you are a freelancer or an SMB, you have got to use at least one platform.

So, which platform are you looking to use or already using?

Payoneer vs PayPal: What’s Best for International Payments
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