Payoneer VS PayPal- So we are comparing two of the best of the best online payment platforms, two giants in the business that offers the same services with different styles and conditions. Apparently both were founded in 2005, the first by Yuval Tal and the Latter has a rather complicated history.
Paypal was originally founded in 1998 as Confinity, a security software company for handheld devices by Max Levchin, Peter Thiel and Luke Nosek. By March 2000 they merged with X.Com (an online banking company) whose owner was Elon Musk.
Musk who was later replaced by Peter Thiel wanted the company to focus on the banking and transfer of money, so the name Paypal came up in 2001. Time went on and eBay acquired Paypal. By 2007 a partnership was made with MasterCard and by 2010 it could boast of over 100 million users and since then it’s been success stories and history.
Furthermore eBay made Paypal a separate entity in July 2015, more like they gained their independence. Available in more than 200 countries, they operate in about 202 different markets and has access to 25 different currencies. Their Digital Marketing feature promises users easy, flexible and transparent transactions.
The company was founded in 2005 with $2 million by Yuval Tal and an additional $4 million 2 years later by private investors 83 North. Its headquarter is in New York.
It facilitates cross border B2B payments. Since then Payoneer has partnered with different firms to facilitate mass out payments to workers, freelancing firms and also added automated tax form service to its lists of services.
The company is valued over $1 billion, this shows just how much the company has grown. They operate in 70 different languages and 150 different currencies, so this just makes it easier for flexible cross countries transaction.
Paypal or Payoneer
So let’s get to the main topic. We would compare both of them and let you do the judgment. This will help you decide which one to use, which one suits your lifestyle and would be easier for you to use;
- Both of them do not offer services for free. Although, Paypal charges seem to be higher when accumulated especially with Paypal additional sub charges.
- Anything of value brings the issue of security. Not just security of your money or valuable information but of personal information. Paypal seems safer because it’s a publicly-traded company especially when it comes to personal information security.
Apparently, Payoneer seems safer, Recent times there have been lots of Scam accounts on Paypal. Although Paypal is doing everything to stop this.
- “Time is Money”, a very popular saying. When expecting money transfer to your account, most people prefer money transfers very quickly without hesitation. This is one part where Paypal underperforms.
Payoneer transfers money to other Payoneer accounts or local bank accounts in less than 24 hours after the transaction was initiated. Paypal takes 2-4 business days after the transfer has been initiated. Although you could use catalysts that would involve additional charges that can be quite high.
- Payoneer is more flexible than Paypal when it comes to converting transferred currencies to a specified currency. When you receive money via Payoneer account, it can be automatically converted to your country currency and sent to your local bank account. Paypal, you need to request a change in currencies or transfer to a local bank account every time.
- Payoneer has a lower withdrawal (transfer to a local bank account) limit of $9,500 per day compared to Paypal’s $10,000. Although these figures could still come up. Paypal figure only works for a verified account and it varies on the activities of your account.
- Paypal withdrawal is complicated. If it’s a new account, you can’t do more than $500 a day. So you have to verify your account. You also have to set your daily and monthly limits and might need to have multiple bank accounts, debit or credit cards to do huge transactions.
- The total spending limit for your Payoneer card is $5000. That of Paypal ranges from $300- $4000 still depending on your account.
- Then there is the annual credit card fee. While Payoneer collects an annual credit card fee Paypal does not. In the long run Paypal monthly charges are quite frustrating because they are accumulative.
So these are the features as far as I can tell. It does not necessarily mean Payoneer is better than Paypal, it depends on your choices and life concept. Paypal’s limit is a way of being security conscious and on the brighter side moderate people’s spending.