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Payoneer vs PayPal?

Are you familiar with online payments? If so, you are likely to have heard of PayPal or Payoneer.

If you are someone freelancing, having an e-commerce store or an affiliate marketer. You must heard about these two and probably using these as well.

But you probably wondering what is the best payment method in these two? Payoneer or PayPal?

In this article I am trying to breakdown the features of these two payment methods and the difference.

You can decide which one is the perfect payment method for you

E-Commerce or Online payment integration

If you run an E-Commerce website you know that PayPal is the most integrated payment option in most of the E-commerce website and mostly you too have integrated with your website.

Since It is the most recognized payment method around the world.

You can use PayPal for receiving the payment as well sending.

However using Payoneer you cannot integrate the Payoneer with your website for payment receival, but you can connect Stripe payment gateway and connect your Stripe account with Payoneer for any payment receipts.

It is a win for PayPal when it comes to E-Commerce website integration.

Accepting Payments from Affiliate Platforms and Companies

If you check most of the online affiliate platforms like Commission Junction, Shareasale they offer PayPal and Payoneer both the platforms as their Payment platform.

If you are selling course on Udemy they also offers both the platforms for payment procedure. Platforms offering both the payment method makes it much convenience for the user.

Creating a virtual bank account

Payoneer allows you to create several virtual bank account based on different currencies like USD,EUR,GBp and JPY.

Connecting this virtual bank account allows you to receive payments from the merchants who support international bank transfer as their payment method.

Contrary to Payoneer, PayPal does not allow you to create a virtual bank account but it allows you to connect your PayPal account to the merchant platforms for payment receipts.

Create a Visa / Mastercard

Payoneer offers a mastercard service for a nominal payment. Payoneer mastercard allows you to use the funds in the payoneer account without a need to withdraw to your local bank.

Paypal do not offer you any card service as of now.

Paying online merchants

Paypal allows you to pay for the services and items you purchased on online. Paypal lets you connect your account and pay for the respective service or items.

But Payoneer won’t allow you to connect your account and pay, but you can use their MasterCard for online transaction.

Payoneer’s MasterCard option works mostly in any online platform where paypal will only work with some of the supported online merchant.


Payoneer is available in almost all the countries while PayPal is supported only by some countries which are adhering to the PayPal’s strict policies.

If you are living in a country where PayPal is not available you are not in the dilemma of PayPal or Payoneer.

There some workarounds to get PayPal to work in the country but those methods are risky and not recommended.


Policies wise PayPal has strict policy in selection of country for their support, where payoneer do not have that strict policy and Payoneer available in most of the countries.

But when it comes to transferring funds and usage of the platform, Payoneer placed more strict policy than PayPal.

Like Payoneer not allowing transfer of money for giveaways and gambling  while PayPal has no restriction on this of you use it correctly.

Transaction processing speed

Paypal Transfers are mostly instant or within few minutes in most cases. Normally when I withdraw the funds to my local bank account, it transfers within minutes.

And with Payoneer Transfer from Payoneer to Bank account usually takes around 2-3 business days, some transfers made within 24 hours as well.

Fee Structure

Payoneer charges exchange rate margin rate up to 3% while withdrawing money and transferring balances between different currencies.

And using there payoneer MasterCard carries a 3.5% of currency conversion fee.

And you might need to pay fees when receiving and sending payments.

The Payoneer Prepaid Mastercard comes with an annual fee as well and they have introduced a new fee for non usage of payoneer account recently

Online payment using PayPal is free of charge.

PayPal charges a fixed fee and Exchange rate margin when withdrawing your amount.

As a merchant you have to incur a transaction fee when receiving a payment for your service or sale. USA PayPal users it is 2.9% + $0.30 per transaction and for international transaction 4.4% + $0.30 per transaction.

Final Thoughts

As you see both the Payoneer and Paypal has its own advantages and disadvantages. You have to weigh down your expense, benefits and your usage convenience to come up with the right platform.

payoneer vs paypal

Payoneer vs PayPal FAQ’s

Payoneer or PayPal which one is better?

Payoneer is better than PayPal when it comes to international money transfers. Unless you need a payment gateway for your e-commerce website or eBay seller payment processing In that scenario, PayPal is the savior..

Does PayPal accept Payoneer?

Payoneer does not have a problem with connecting your virtual Payoneer Bank account to your PayPal account
But PayPal does not allow you to connect Payoneer bank account to PayPal for some reason.

What is Payoneer annual fee?

Payoneer charges an annual fee of $29.95 If your account is inactive for 12 month period, but if you are active you’re your Payoneer account you’ll never pay a $29.95 fee.

Is there an annual fee for Paypal?

There are no monthly or annual fee for PayPal only the transaction fee

What is Paypal Transaction fee?

For US customers PayPal Transaction fee is 2.9% + $0.30 per transaction, For International transaction it is 4.4% + $0.30 per transaction

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