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 payment to their employees, be it nationally or internationally. PayPal and Payoneer are two top payment applications that meet all needs of an individual in terms of transferring money.
PayPal vs Payoneer
The difference between PayPal and Payoneer is that PayPal’s transaction fees are cheap, whereas Payoneer’s transaction fees are higher in comparison with PayPal.
Comparison Table Between PayPal and Payoneer
|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 in 26 local currencies||Payoneer can convert money in more than 150 currencies.|
|Transfer Speed||With PayPal, the money takes 1-2 business days to get transferred.||With Payoneer, the money gets 0-3 business days to get transferred.|
|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.|
|Security||PayPal is less secures than Payoneer in terms of passwords.||Payoneer can be said of having the most secured setup.|
What is PayPal?
PayPal is one of the most popular companies in the field of 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 its users to send money up to 10,000 people at one go.
One needs to attach the details of their credit cards or bank account with the application to request or transfer money. It also does not charge any kind of maintenance fee for using the application.
Recently, the money transferring application has introduced its new service where it allows its customers to use cryptocurrencies for shopping at over 26 million merchants which the network is soon going to start in 2021.
What is Payoneer?
Founded in 2005, American money transferring company Payoneer offers digital payment services to its customers with working capital.
Here, the customers or the account holders can both 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 – specialised in providing cross-border transactions to 200 countries and territories with an option of over 150 local currencies.
The company is famous among the market by making popular organisations its customers – Amazon, Google, Upwork, Walmart, etc. It is also popular in the content creation space by working with popular organisations 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 correct credentials. Whereas setting up an account on Payoneer is comparatively tough as they are highly secured and do not accept everyone as its customer.
- PayPal can convert money in 26 local currencies. Whereas, Payoneer can convert money in more than 150 local currencies.
- While transferring money via PayPal, it can take 1-2 business days to reach to its receiver. On the other hand, when one transfers money with Payoneer, it takes almost 0-3 business days to reach to its receiver.
- The transaction cost in PayPal is comparatively higher than its rival. Whereas 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 which means that anyone with the account password can use the PayPal account on any device. On the other hand, Payoneer can be termed as the most secured one as if someone wants to log in from a different device they haven’t used before, Payoneer will ask it for verification and only after a successful process one can proceed.
- Talking about the tax, PayPal has an agreement with the Internal Revenue Service (IRS) Tax. Whereas, Payoneer has no tax validation.
After comparing both the leading financial transaction applications – PayPal and Payoneer – it might be now easier to sort which one is above whom.
Both of them have their pros and cons. Like PayPal widely used all over the world but still at some places its services lack, so in that case, if one fall on those places, then they can go for Payoneer.
Similarly, supposedly one owns an online shopping website and its customers prefer PayPal, so that person should opt for PayPal over Payoneer.
But if one who wants to use such applications just to transfer money, they can go Payoneer due to its low transactional fee structure.
So, the decision is all on the user and his/her needs. From transaction fees to security, every single thing should be scrutinised before opting for any of the applications for a better smooth experience.