Time is money, and vice versa. The world is trending toward cashless transactions and interactions, and many solutions have facilitated this shift. PayPal is one of the most popular money management platforms currently available, but other solutions like Payoneer also provide excellent services.
It begs the question, which is the better choice between PayPal and Payoneer in the areas that matter the most, like security and benefits? Let’s find out.
PayPal vs. Payoneer: Which Is More Secure?
For starters, both platforms have dedicated security centers on their web pages. PayPal’s security center displays common security breaches users may face and details how they can be avoided. This section also offers tips and common steps users should take to secure their accounts.
The rudimentary facets of PayPal’s secure technology include the PayPal security key (one-time password), fraud monitoring and prevention, data encryption, email payment confirmation, and transport layer security connection.
Users need to link their phone number to their PayPal account before accessing their PayPal security key, as it will be sent via text message. These security protocols can be augmented for buyers and sellers at an extra price—making it a great feature if you intend to use your PayPal account for business.
PayPal also offers a list of its security certifications on the same page as details of their security technology and practices. The above-detailed security features and certificates should clear up any doubts you have about whetherPayPal is safe to use.
The Payoneer security page is also incredibly detailed. The page showcases various lists of brands and services that trust Payoneer as a payment solution to show credibility. It also displays Payoneer’s licenses and security certifications from regulatory bodies in popular countries worldwide.
But what about the user side of security? Well, Payoneer details how you can secure your accounts against hackers. They offer two-step verification, RSA (Rivest-Shamir-Adleman algorithm) authentication, and account takeover prevention.
There is much more to explore in the security center that is on par with the services PayPal offers. So, it’s safe to say that both platforms take their security very seriously.
PayPal vs. Payoneer: Uses and Integrations
Payoneer is well integrated with many platforms and popular marketplaces like Fiverr, Upwork, and iStock. This makes it easy toreceive payments through Payoneerfrom these platforms. The platform also empowers you to bill clients by requesting payments through the platform across different currencies.
In addition, the multiple currency support allows you to convert from one currency to another conveniently. What’s more? Payoneer also supports online shopping and works well with stores like Amazon, Walmart, and Alibaba.
Similarly, PayPal is supported on thousands of stores and platforms. The option to pay with PayPal automatically pops up on Amazon, Wish, Fiverr, Airbnb, and beyond.
As an old name in the online transaction space, the services offered on PayPal have evolved beyond transacting in fiat currency and crypto. You can pay and manage bills, take out a business loan, set saving goals, and access other business resources.
From the above, we can see that while both platforms have many integrations, PayPal has more depth of usage than Payoneer, largely due to its years of operation. As such, PayPal has had more time to refine its services and is currently the better option in terms of offered functionality.
PayPal and Payoneer’s Accepted Payment Methods
PayPal often prompts new users to link their credit or debit cards to their accounts before exploring what the app offers. The platform also facilitates credit card rewards as a means of payment. However, there are other methods of payment available in the US. For instance, the PayPal app allows users to send, receive, and store crypto.
Payoneer is a different story. The platform is clear about its payment policies from the onset. A user cannot add money to their Payoneer account from their bank. However, you can still receive money from marketplaces or clients with your Payoneer account and use these funds to make payments.
Payoneer also supports other currencies and allows users to switch from one currency to another conveniently. And while funds held in your Payoneer account are easily accessible via debit card transactions, you’ll need to knowhow to order and use the Payoneer debit cardfirst.
Ultimately, PayPal is a lot more convenient in terms of payment solutions because you can easily fund your account with your credit or debit card.
PayPal vs. Payoneer: Fees
Both Payoneer and PayPal offer great services for your convenience, but what do they get in return? This is where the service charges, or fees, come into play. PayPal and Payoneer charge different rates. So, let’s compare.
First, let’s look at PayPal’s service fees. It’s important to note that these figures could vary depending on your region, but are standard for the most part. You can make a purchase or donation with PayPal for free as long as no currency conversion is involved.
There’s a different subdivision for fees for merchants, that is, those who use their accounts to make commercial transactions. The fee ranges from as low as 1.9% of the transaction amount to as high as 3.49%. Some of these merchant sales may also incur a fixed fee in addition to a percentage of the transaction amount.
PayPal also has a separate list of fees pertaining to purchasing and selling cryptocurrencies. It starts as low as $0.49 for any crypto transaction lower than $5 and scales as high as 1.5% of the transaction amount when the amount of crypto involved is worth more than $1,000.
Transactions between Payoneer accounts, on the other hand, are completely free, regardless of the currency. The platform also takes as much as 3% of the transaction value when users request payment from their clients via Payoneer.
Furthermore, the cost of integrating with marketplaces like Fiverr and Upwork varies depending on the platform. You would have to check their websites for transaction fees. Payoneer also charges for withdrawals to standard bank accounts and for ownership of their Payoneer debit card.
When compared, PayPal has a longer and more complex list of fees, all dependent on various conditions. In this regard, Payoneer is far easier to work and track costs with.
Payment Limits on PayPal and Payoneer
PayPal is generous to first-timers and allows a one-time transaction limit without an account for up to $4000. However, you will need to create an account to transact further after this. There is no limit to the amount of money verified PayPal account holders can send—in total. However, the platform may limit how much you may send at a go to $10,000.
Payoneer is a little different. With Payoneer, you’re able to send and receive up to $25,000 daily. However, you are limited to sending $50,000 and receiving $100,000 monthly. So, in terms of bulk transactions, PayPal edges out with a higher, almost non-existent transaction limit.
PayPal vs. Payoneer: Withdrawal Times
Both PayPal and Payoneer allow users to safely withdraw money from their accounts into a standard bank account. It’s important to know how long this transaction could take. So, let’s look at the withdrawal times for both platforms.
PayPal offers two methods of withdrawal, which are both completely free. TheInstant Withdrawalfeature transfers the funds to your intended account from anywhere within one to 30 minutes. On the other hand, theStandard Withdrawaltakes about a full working day to process. Both of these times also depend on how quickly your bank can clear transactions.
Payoneer, however, has a standard withdrawal time for all users: one day. However, this time could be extended to as many as two business days.
PayPal vs. Payoneer: Our Verdict
So, considering all the factors detailed above, which is the better choice between PayPal and Payoneer? One could easily argue that PayPal is a better-tested and trusted choice because of its support and limitless transactional nature.
However, Payoneer better facilitates requesting payment from clients and businesses. So, it ultimately boils down to your intended use. Go with PayPal for personal and general business use, but pick Payoneer if you intend to transact with clients and customers frequently.
