The gig economy and freelancing have become hugely popular all across the globe during the Covid-19 pandemic, and it is just getting bigger. With clients from around the world, going through the payment process is increasingly becoming a point of concern for many users around the world. In the digital world, payment shouldn’t be an issue, and it shouldn’t be the thing that stops you. This is where players like Payoneer and PayPal come in to ease your worries when it comes to payments. They are both online payment services that can help you make and receive international payments. Read on to learn more about both and see which one is right for your freelance work.
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Now, let’s learn more about these two payment platforms.
PayPal
The original global online payment service and wallet, PayPal is a prominent online payment service provider since its inception. With the PayPal wallet, you can make, receive payments, and transfer between other PayPal accounts. As well to a payment gateway that is for website payments and a marketplace for market transactions, PayPal offers a marketplace that is for all sides of the market. If you have a registered business, PayPal can be a convenient way to receive payments for freelancers. If you don’t have a registered company, you can’t use PayPal for business. It does, however, come with some fees. You’ll get your payouts into your bank account every day. The two most significant fees are the 4.40% transaction fee in addition to a fixed fee based on the receiver’s location. In addition to that, there’s the exchange rate charge.
PayPal is known to have its own currency exchange rates so it appears to be weaker than the actual market exchange rate that you can see on Google in order to sneak in a fee on currency converted into your currency. The fees can add up quickly, especially if you don’t notice them. PayPal releases money to your account automatically and daily, so you’ll never have to withdraw the money yourself. However, it may take up to five days for the funds to be transferred to your bank account.
Payoneer
Payoneer lets freelancers get paid for work done both domestically and abroad. Payoneer is the preferred payment method for freelancers working online, especially the ones using platforms like Fiverr and Upwork. Payoneer is a payment service that provides receiving accounts where clients abroad can pay locally in USD, EUR, GBP and CAD. Clients don’t have to convert or send funds abroad via any other medium because the money can be sent directly to the freelancer. It’s also simpler for freelancers, so they don’t need to convert money coming from abroad. You can also send Payment Requests to qualified clients.
Payoneer charges for payment, withdrawals, and other miscellaneous services. The expense of a Payoneer payment will vary depending on how and where it is made. In addition to setting their own exchange rate, Payoneer charges a conversion fee. Payoneer does not disclose how much they charge, and their charge is said to be about 2-2.5% higher than the current real market exchange rate. High earners may get a break on certain fees if they are a freelancer.
A Comparative Between PayPal and Payoneer
| Brand | Pros | Cons |
| PayPal | Wallet-to-wallet transfers are free and do not have any hidden charges. | Only registered businesses can receive payments from abroad from the business account. |
| It’s one of the most popular global brands with high credibility and brand value. | The exchange rate of every currency is applicable and every currency comes with an exchange rate fee, which is borne by the receiver. | |
| Multiple payment options are available. | For receiving payments, one has to pay hefty fees, which are deducted at the time of payment received. | |
| Payoneer | It’s free and easy to sign up. | Withdrawals and payments come with a hefty fee. |
| Can receive money in the following currencies: USD, Euro and GBP. | Significant conversion fees. | |
| Daily withdrawals are available in the bank account. | Non-commercial purposes or individual payments are not allowed. |
Right now, PayPal is the only major online payment method that has been around for nearly 20 years. It is not only the largest online payment system but also the longest-running online payments system in existence. Paypal allows you to send and receive payments online. It is a great method for receiving payments for freelance work or any other online business. The only downside of PayPal is that it isn’t as efficient for businesses as Payoneer is, which means you will have to pay more fees for every transaction made through PayPal.
Payoneer is a comparable online payments platform that allows you to receive payments from clients and other businesses. The platform aims to be more efficient, secure, and transparent than PayPal. So, whichever suits your needs of the hour, pick that option and move forward in your journey of success.