When it comes to receive money overseas through online income sources i.e. freelancing, affiliate marketing, blogging, advertising etc online payment systems have established themselves as a preference to direct bank transfers. This saves money on sending and receiving both ends. Present article compares two popular platforms paypal vs payoneer online payment systems.
While both platforms mediate receiving and sending funds overseas, however their functioning is completely different. Let’s have a look to their functioning as well as their pros and cons.
Paypal vs Payoneer
Paypal was established in 1998 so it has been 19 years for this company in e-commerce field and it can be found on almost every site which pays or receives money online.
Payoneer was established in 2005 so it has been 12 years for this company in e-commerce field but in these 12 years payoneer has established itself very well.
On sign up paypal page you register with an email id. This email id functions as the key to send and receive money online. You need to provide this registered email to the person to get funds transferred in your paypal account.
Payoneer on the other hand registers you with an email id for communication purpose. It provides you a virtual collection account which includes a US, UK, Europe and Japan account as well. These accounts have account number which is to be given to the person for receiving funds.
Paypal account initiation is done manually. Paypal deposits two very small amounts in your bank account which you have to mention in your paypal account. After this you paypal account is initiated.
While on the other hand payoneer doesn’t need any manual initiation. As soon as your account is approved your account starts functioning.
For transaction of every $100 paypal deducts $5, while payoneer deducts $2 only if it is higher than $75. So there is huge saving with payoneer.
Paypal first converts your received money then deposits in paypal account. Then this money is withdrawn to your bank, again with a currency conversion. On the other hand, payoneer provides a local bank account so you don’t lose money due to multiple currency conversions. With payoneer you directly get money in your payoneer account then currency conversion happens while transferring to your bank account.
Smoothness of transaction
Smoothness of transaction refers to how hassle-free a transaction is.
Paypal takes 3-5 (sometimes even more) business days to complete the transaction while payoneer guarantees transaction to be completed in 24 hours.
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Payoneer offers INR 500,000/- daily withdrawal limit whereas paypal has set it very low.
Both payoneer and paypal offer good customer service.
While payoneer saves a lot for you but it is not available with every site. Paypal on the other hand is available almost everywere.
☞ Payoneer offers $25 as a bonus when you complete your first $100 transaction (including send/receive both).
So, which platform you should choose. While payoneer offers great savings for you, still you should have both accounts mainly because of two reasons-
- Both are free
- Payoneer availability is limited
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