As technology is developing day by day, the system of business is also changing. Now people can work for an international company at home with the ‘Work From Home’ opportunity instead of relocating to another country or city.
And with this, the mode of payment has also gone virtual. It is all on the tip of one’s fingers.
Several other money-transferring mobile applications have stepped in to ease the tension of employers to make payments to their employees, be it nationally or internationally.
PayPal and Payoneer are two top payment applications that meet an individual’s needs in transferring money.
Key Takeaways
- PayPal is widely accepted globally and can be used to make payments online, receive payments and transfer money to other PayPal accounts. In contrast, Payoneer is mainly used for receiving international payments.
- Payoneer charges higher fees for cross-border transactions and has a lower currency conversion rate.
- Payoneer provides its users with a MasterCard debit card that can be used to withdraw cash at ATMs, while PayPal does not offer this option.
PayPal vs. Payoneer
PayPal is one of the most popular online payment platforms, offering a variety of services such as online payments, money transfers, and mobile payments. Payoneer is a financial services company that provides a global payment platform, cross-border money transfer, and online payments. Payoneer is designed to help businesses and freelancers.
Comparison Table
| Parameters of Comparison | PayPal | Payoneer |
|---|---|---|
| Establishment Year | PayPal was founded in the year 1998. | Payoneer was founded in the year 2005. |
| Active Customers | PayPal has over 200 Million active customers. | Payoneer has over 4 million active customers. |
| Account Setup | Setting up an account on PayPal is very easy. | Setting up an account on Payoneer is tough comparatively. |
| Currency Conversion Routes | PayPal Converts money into 26 local currencies | Payoneer can convert money into more than 150 currencies. |
| Transfer Speed | With PayPal, the money takes 1-2 business days to transfer. | With Payoneer, the money gets 0-3 business days to transfer. |
| Tax | PayPal has an agreement with the Internal Revenue Service (IRS) Tax. | Payoneer has no tax validation. |
| Cost of Transaction | The cost of the transaction of PayPal is comparatively higher than Payoneer. | Payoneer’s cost of a transaction is comparatively low than PayPal’s. |
| Security | PayPal is less secure than Payoneer in terms of passwords. | Payoneer can be said to have the most secure setup. |
What is PayPal?
PayPal is one of the most popular companies in financial technology.
It became the first to introduce online banking systems in the late 90s.
Today, PayPal supports 200 countries with 25 currencies. People use it as an option to ease the haphazard old technique of money transferring.
With PayPal, anyone can send money globally to their family or friends and even to e-commerce websites with just their email address. Its PayPal Payouts feature enables users to send money to up to 10,000 people in one go.
One must attach the details of their credit cards or bank account with the application to request or transfer money. It also does not charge any maintenance fee for using the application.
Recently, the money transferring application has introduced its new service, allowing its customers to use cryptocurrencies to shop at over 26 million merchants. The network will soon start in 2021.
What is Payoneer?
Founded in 2005, the American money-transferring company Payoneer offers digital payment services to its customers with working capital.
Here, the customers or the account holders can receive and send money via an e-wallet with a virtual bank account number that keeps the money in local currency.
Payoneer is popular or can be said – to specialize in providing cross-border transactions to 200 countries and territories with an option of over 150 local currencies.
The company is famous in the market by making popular organizations its customers – Amazon, Google, Upwork, Walmart, etc. It is also
popular in the content creation space by working with popular organizations like Pond5, Getty Images, iStock, etc.
It is also widely popular for its security services. Payoneer does not allow login via all devices with a password and without any verification.
It first asks for verification, and after a successful process, one can proceed.
Main Differences Between PayPal and Payoneer
- Setting up an account on PayPal is very easy with just an e-mail ID with the correct credentials.
- Whereas setting up an account on Payoneer is comparatively tough as they are highly secure and do not accept everyone as their customer.
- PayPal can convert money into 26 local currencies.
- Whereas Payoneer can convert money into more than 150 local currencies.
- While transferring money via PayPal can take 1-2 business days to reach its receiver.
- On the other hand, when one transfers money with Payoneer, it takes almost 0-3 business days to reach its receiver.
- The transaction cost in PayPal is comparatively higher than its rival. At the same time, the transaction cost or fees of Payoneer is much cheaper.
- PayPal is highly secured, but the only issue with it is that it doesn’t have the two-factor authentication option, meaning anyone with the account password can use the account on any device.
- On the other hand, Payoneer can be termed the most secure one. If someone wants to log in from a different device they haven’t used before, Payoneer will ask for verification, and only after a successful process can one proceed.
- Regarding tax, PayPal has an agreement with the Internal Revenue Service (IRS) Tax.
- Whereas Payoneer has no tax validation.
Last Updated : 11 June, 2023
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Sandeep Bhandari holds a Bachelor of Engineering in Computers from Thapar University (2006). He has 20 years of experience in the technology field. He has a keen interest in various technical fields, including database systems, computer networks, and programming. You can read more about him on his bio page.
The ironic comparison of the tax validation between PayPal and Payoneer was amusing yet insightful.
The post was insightful and helpful to understand the major differences and benefits of PayPal and Payoneer.
I disagree with the remark about the security differences between PayPal and Payoneer.
Agreed, the security section could have been more detailed.
The post skillfully addresses the most important differences and functionalities of PayPal and Payoneer.
I particularly liked the section discussing the account setup differences.
Agreed, the comparison table made it easy to understand the various aspects.
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The detailed information about the transfer speed was quite enlightening.
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I agree, the post effectively lays out the contrasting features of both platforms.
The article is very thorough and well-researched. It offers a balanced view of both platforms.
Yes, the comparison of the cost of transactions was quite insightful.
I found the information on customer base and establishment year particularly interesting.
The article provides a comprehensive comparison of PayPal and Payoneer, making it easier for readers to make an informed decision.
Yes, the clear information on transfer speeds and currency conversion rates is really helpful.
The comical tone of the post made the comparison between PayPal and Payoneer more interesting and engaging.
I also appreciate the humorous elements in the discussion.
The discussion on the differences between PayPal and Payoneer is enlightening and informative.
I agree, the details on the currency conversion routes were particularly interesting.