Payoneer Vs Paypal: Which is the Best Pick for You?

Founded in New York in 2005, Payoneer is a leading global payments platform that facilitates international money transfers in over 70 currencies. It offers virtual local accounts, multiple payment options, along with digital FIRA to ease compliance for Indian businesses. 

While Payoneer is a go-to for many, its fees and customer support have not met everyone's expectations. If you're looking for an international payment solution, it’s wise to consider a few alternatives that might better suit your needs. Let's start with Payoneer Vs PayPal. 

Payoneer Vs Paypal: Understanding the Differences

Payoneer

In our discussion on Payoneer Vs PayPal, let's start with PayPal. As we’ve discussed, Payoneer payment Gateway is a leading platform for businesses to send and receive international payments. Let’s take a quick look at some of its key features, pricing and areas of concern.

Key Features

Pricing

Opening a Payoneer account is free, but there are charges associated with receiving and withdrawing payments. Let's understand their fee structure:

Account Setup: Opening a Payoneer account is free, but fees apply for transactions and withdrawals.

Receiving Payments:

Payoneer-to-Payoneer payments: Free

Via credit card: 3.2% + $0.49 per transaction

Via ACH Bank Debit (US): 1% fee

Payments through virtual accounts: Free for EUR and GBP, up to 1% for USD

Withdrawing Payments:

Withdrawals to a local bank account will incur up to a 3% fee if the currency differs. For example, if you get paid in USD and you want to withdraw it in your INR account in India, a fee of upto 3% will apply

Additional Costs:

Extra charges like bank processing or intermediary fees may apply.

Annual Fee: $29.95 annually if you receive less than $2,000 in total payments over 12 months.

In a nutshell, as an exporter, if you are receiving and withdrawing international payments via Payoneer, the following fees will apply:

Credit Card Payment: 3.2% + $0.49 per transaction + 3% withdrawal fee

ACH Bank Debit: 1% Transaction Fee + 3% withdrawal fee

Virtual Bank Account: 1% for USD + 3% Forex withdrawal fee

Concerns

Businesses often choose Payoneer for its convenience and platform integrations, though some users have noted challenges with customer support and currency conversion rates. 

PayPal

Next on the debate on Payoneer Vs PayPal, let's now talk about Paypal. It is a leading financial services company, and its credibility, coupled with global reach, makes it a top choice for receiving international payments in India. The platform supports over 100 currencies and offers various payment methods, including credit and debit card payments and subscription models. 

Key Features:

Pricing

The following are the PayPal fees associated with receiving international payments in India via Paypal

Transaction Fee: PayPal charges a 4.40% transfer fee on international business payments. For instance, receiving USD 1000 from a US client results in a USD 44 deduction.

Fixed Fee: A fixed fee, depending on the currency, is also applied alongside the transaction fee. 

Currency Conversion Fee: PayPal adds a 4% currency conversion fee to the prevailing exchange rate when converting foreign currency to local currency, which means you'll receive a lower exchange rate than the market rate.

In summary, as an exporter, you'll need to pay the following fees to receive international payments through PayPal:

4.40% transaction fee+ Fixed fee (approx 0.30 USD)+ 4% currency conversion fee. 

Concerns

PayPal’s ease of use and credibility make it a crowd favourite for managing cross-border payments, but its significantly pricing can make it an expensive option for many, especially for smaller businesses. 

Payoneer Vs Paypal: A Quick Rundown

Here’s a quick snapshot of Payoneer Vs Paypal along with Skydo, for a better understanding:

Payoneer Vs PayPal: Which one is better?

Deciding which platform is better isn’t straightforward, as both have distinct strengths. Payoneer offers lower fees for receiving international payments, while PayPal is renowned for its global credibility and widespread acceptance. Assess your specific needs to determine which platform aligns best with your business requirements.

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