Outsourcing is on the rise and more businesses are operating globally, which is why so many of us are looking for global payment solutions. There are several great options to choose from but in this review, I will be focusing on Payoneer vs TransferWise.
Payoneer and TransferWise are two brands that have been making waves in the financial services industry.
The need for online banking solutions is increasing rapidly, which means the competition is too. Offering superior customer service is just one of the ways that these brands are able to stand out.
However, customer service is just one piece of the puzzle. In this review, I will be outlining what each platform offers so that you can make an informed decision. i’ll cover transfer fees, duration, limits and much more.
Transacting globally can seem daunting, so the last thing you want is for it to be complex. As a business owner, having to deal with complex global payment processes is not something I want to do on a monthly basis.
Payoneer vs TransferWise – The Basics
Let’s start with a basic comparison.
Founded in 2011, TransferWise was designed to be a currency transfer platform. The management team wanted to offer people lower commission rates as well as the ability to send money across borders.
The founders decided to start the businesses because they were dealing with huge commission payments every month. Today, TransferWise has moved billions of dollars for both individuals and businesses.
- Peer-to-peer currency transfer service
- Transactions completed in no more than 4 days
- Reuters mid-market rates used for exchange rates
- Nominal money transfer fees
- USD, EUR, GBP and AUD supported
- Once-off and recurring payment options available
- Useful online calculator makes understanding fees simple
- Debit cards, Apple Pay, SWIFT payments and bank transfers supported
- Thousands of excellent reviews on Trustpilot
I love a multilingual platform and TransferWise is one of them. Another useful feature is that you have the option to carry bulk payments for up to 1,000 recipients at a time. Their Facebook support bot is fun to use too.
One downside is that payments from Hong Kong are not accepted. The fact that they require identity verification on a regular basis can get annoying, but I suppose it’s for the right reasons.
On a global scale, TransferWise has offices in Spain, Singapore, US, UK, Japan, UAE, Hungary, Belgium, and more. They also support over 40 different currencies. If you’re just looking to trade in some of the world’s major currencies, you don’t need much more than this.
Payoneer was established in 2005, so they have been around for a little longer. The brand started out in New York with a mission to simplify the global money transfer process, whilst providing excellent support to customers.
Payoneer currently works with some of the biggest brands on the planet, this say a lot about the platform’s success, high profile customers include Amazon, Airbnb and many more.
- Payoneer account can be used as a bank account
- Transfers can only occur between Payoneer accounts
- Payoneer debit and credit cards can be used to make online purchases
- Payments do not carry a fee
- 150 Currencies are supported
- Incredibly competitive exchange rates
While a number of medium to large businesses use Payoneer, it’s also a popular choice amongst freelancers. I really like that debit card payments are possible and that the platform acts as a bank account.
On the downside, it can take a while to open an account and if you have a personal account, you won’t be able to transfer any funds, you’ll only be able to receive them.
On a global scale, Payoneer has some pretty impressive reach. They have 14 offices across the globe, including countries such as Spain and Hong Kong. The fact that they have partnered with so many renowned marketplaces says a lot about their credibility and reach.
What’s just as impressive is they handle over 150 currencies in over 200 countries, so you’ll definitely have more options here.
Payoneer vs TransferWise – The In-Depth Details
Now, let’s get into the specifics of each platform so that you know what to expect if you choose to sign up.
For me, processing payments should be simple. Fortunately, Payoneer and TransferWise make the account sign-up process and transacting across different currencies easy.
On the convenience and usability side, Payoneer allows users to transfer money wherever they are using the iOS or Android app. This app is just one of the reasons why the platform is so popular amongst freelancers, particularly in countries such as India and the Philippines.
In terms of how easy it is to use, Payoneer isn’t overly complicated. Once you know where to find everything, transacting is simple. Plus, their support team is very helpful and turnaround times are good.
TransferWise is also well known for its user-friendly interface – it also has an app for both iOS and Android for added convenience.
What makes TransferWise so easy to use is that the interface almost spells everything out for you. The text and instructions are easy to read and any forms and fields are very user-friendly. If for any reason you do get stuck, there are several support options to choose from.
When you’re running an online business and want to grow it, fees are important.
Payments are free on the Payoneer platform – the same applies when you receive funds from other Payoneer accounts. The charges come in when you want to withdraw funds or transfer them to a local bank account. The fee you pay will depend on the currency, we’ve always benefited from very competitive rates.
If you use your Payoneer Mastercard to transact in a non-listed currency, this will attract a 2.5% currency conversion fee.
If you receive payments via Global Payments Service, a 1% fee is charged. The same fee applies when receiving USD e-checks.
You can find a detailed fee structure here.
The amount that you transfer via TransferWise will attract a percentage fee. This percentage is based on the currency and destination country. Withdrawing funds will also result in fees, which will include a currency conversion fee.
TransferWise has a handy fee calculator that you can use to determine what you can expect to pay when transacting. The fees for sending money and transacting via a multi-currency account will differ.
Based on the global payment platforms I’ve used, both Payoneer and TransferWise are very competitive in terms of exchange rates. It’s also important to keep in mind that market fluctuations play a role in these rates, so it’s very difficult to compare.
Payoneer bases their exchange rates on the mid-market rates. However, some countries will attract a 2 – 2.75% currency conversion charge. If you’re going to use your Payoneer Mastercard to purchase from non-listed companies, you can also expect to pay an exchange rate.
TransferWise’s exchange rates are also close to mid-market rates. What I really love is that they send exchange alerts at no cost. You can even see an overview of the exchange rate fluctuations to decide whether you want to transact.
As much as the cost of using a platform is important, so is the speed at which you can send and receive funds. How quickly transfers occur is mainly dependent on the currency you’ve chosen.
You can expect the average Payoneer transfer to take 1 – 2 days.
In most instances, the average TransferWise transfer will take 1 – 3 days.
Both Payoneer and TransferWise offer multi-currency bank accounts. Here are some of the key differences and benefits.
A multi-currency account from Payoneer will allow you to transact in various currencies, including GBP, JPY, EUR, CAD, and more – this is all done via Global Payments Service.
While a 1% fee is charged for USD transactions, there are no fees for EUR, GBY, and JPY transactions. You will also need to pay a monthly maintenance fee for your account – if you want to keep it active anyway.
Users can also receive funds from platforms such as Fiverr, Upwork, Airbnb, and Amazon using the multi-currency account.
In the video below i explain how we use Payoneer to save money against Amazon’s conversion fees, we have literally saved thousands by making this switch.
With a multi-currency account from TransferWise, you can transact in multiple currencies, including USD, EUR, AUD, GBR and more.
If you want to make any transfers into a USD bank account, however, you will need to include Transfer FBOs. Borderless accounts for Hawaii and Nevada are not supported. If you want the full list of supported countries for borderless accounts, click here.
On the plus side, you won’t need to pay to open a new TransferWise account, maintain it or receive international payments. There are also no charges if you choose to transact on Amazon or Stripe.
Both Payoneer and TransferWise also offer prepaid cards. Here are some of the key differences and benefits.
As a Payoneer business user, you will receive a prepaid MasterCard that will attract an annual maintenance fee. There are also a number of restrictions on withdrawals and spending limits, which you can learn more about here. You will also be charged for currency conversions and any ATM withdrawals.
If you have a TransferWise borderless account or you’re a resident of the UK, TransferWise will provide you with a prepaid MasterCard. If you will be transacting in a different currency, conversion charges will be levied. You can also withdraw funds at an ATM for free but only up to a certain amount every month. You can access those limits here.
The good news is that both Payoneer and TransferWise use advanced encryption technology and protection systems to keep their users safe from cybercriminals. Each platform also has several certifications from reputable organizations that speak to their credibility.
While you should always take your own precautions anyway, safety isn’t something I would worry about on either of these platforms.
Along with being a member of FDIC, Initial Covenant Bank, Payoneer is also approved by Gibraltar Financial Services Commission (GFSC). Choice Bank Limited and Wirecard Solutions are the organizations behind the Payoneer MasterCard.
If you want to take a deeper dive into whether Payoneer is safe for eCommerce payments, you can read my in-depth review here.
As TransferWise is a UK-based platform, it is approved and regulated by the Financial Conduct Authority. In the US, the platform is governed by Town Federal Savings Bank. In other countries, TransferWise is a licensed money transmitter.
Payoneer vs TransferWise – What’s The Best Option?
While I have had more experience with Payoneer, regardless of the option you choose, you’re going to save a lot of time and money when you want to transact globally.
Honestly, I know of very few entrepreneurs and business owners who don’t transact globally, so the right payment platform is a must. If you compare the fees and rates of these two platforms with those of your local bank, it’s easy to see why so many people go down this route.
Overall, sending and receiving funds with either of these platforms is simple. All you really need is the recipient’s details and the amount you need to transfer. Accepting payments is just as simple.
If you want more currency options and you’re operating from a marketplace such as Amazon or Airbnb, Payoneer is a better choice. However, if you’re only transacting in major currencies, TransferWise gets the job done at a minimal cost.
If you do want to sign up for a Payoneer account, feel free to take advantage of the sign up offer listed below.
Payoneer have given me access to this exclusive offer for all eBusiness Boss readers!
If you go on to sign up to Payoneer through this link I will make a commission, we like to be completely transparent about things like that.
If you want to compare some additional business payment portal options, read through my review of Stripe vs PayPal.
As always, let me know if you’ve got any questions below.