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PayPal and Payoneer are two popular digital payment services used by businesses and freelancers worldwide. Both facilitate online money transfers and payments but have some key differences.

This article provides an in-depth comparison of PayPal and Payoneer across factors like fees, transfer speed, purchase protection, supported currencies, and more. We’ll analyze all the nitty-gritty details to help you determine the best option based on your payment needs.

Whether you need to pay employees, invoice clients, accept payments, or simply send funds - this guide has everything to help decide between PayPal or Payoneer. Let’s jump in!

Overview of PayPal

Founded in 1998, PayPal has become one of the largest online payment processors in the world. As an early pioneer in the e-commerce and digital payments industry, PayPal paved the way for easy and secure ways to facilitate financial transactions online between buyers and sellers.

Key Features of PayPal:

• Available in over 200 markets around the world and supports 25 currencies
• Send and receive money from others with an email address and PayPal account
• Make purchases and send invoices directly through PayPal
• Supported transaction types include peer-to-peer payments, online shopping, mobile checkout, virtual terminal payments
• Account and purchase protection to safeguard against fraud or non-delivery issues
• Mobile app for payments on the go and easy account management

How PayPal Makes Money:

• Transaction fees charged to merchants and sellers
• Fees for cross-border transactions and currency conversions
• Revenue share agreements with third party partners and banks
• Interest earned on funds and accounts held at PayPal

PayPal has become a dominant force by providing an easy onramp for millions of consumers to safely engage in eCommerce and online transactions. It continues to expand its reach allowing virtually any online business or seller to begin receiving payments quickly.

Overview of Payoneer

Payoneer takes a different approach than PayPal, focusing squarely on serving freelancers and small business owners globally. Key Features of Payoneer:

• Available in over 200 countries and territories
• Supports 150+ currencies and a wide range of language options
• Provides a US, EU, UK or JP bank account number to get paid locally
• Debit MasterCard to make purchases and withdrawals at ATMs
• Low currency exchange fees and transparent pricing
• 24/7 customer support via phone, chat or tickets

Payoneer's Business Model:

• Charges fees for cross-border transactions, currency exchanges, debit card usage, and account services
• Revenue sharing and affiliate agreements with marketplaces hiring freelancers globally

While not as large as PayPal, Payoneer aims to provide tailored financial services for small and medium businesses operating internationally. By making it easy to get paid globally, transfer funds across borders, and minimize fees - Payoneer appeals to those needing to pay remote employees and freelancers located worldwide.

Supported Currencies and Languages

When making or receiving international payments, having support for your preferred currency is critical. The language and terminology used across the payment platform also impacts ease-of-use. PayPal has the advantage in mainstream currency support and translations:

• 25 currencies supported including USD, EUR, GBP, CAD, AUD and more popular currencies
• Available in over 100 languages including English, Spanish, French, German, Portuguese, Chinese and more

Payoneer supports a wider universe of currencies especially helpful for globally dispersed freelancers:

• Over 150 currencies supported along with currency conversion
• Focused on freelancer-friendly currencies like USD, EUR, GBP, CAD, AUD and also those used in emerging markets
• Translated into the major languages but not as broad language support as PayPal

Both platforms enable users to hold balances in multiple currencies and seamlessly convert between them at competitive foreign exchange rates. Payoneer has a clear edge for freelancers located outside of North America or Western Europe dealing in smaller local currencies. But PayPal generally has the advantage with translation breadth across language preferences.

Fees and Pricing Models

One of the most important considerations is how much PayPal and Payoneer charge in fees, and understanding their respective pricing models. PayPal Fees

• 2.9% + $0.30 per transaction for purchases and personal transfers
• Sliding fee structure for merchants based on monthly volume from 2.9% to 1.9% + $0.30 per transaction
• Additional fee of 3-4% for cross border personal payments and currency conversion
• No monthly fees or maintenance costs

Payoneer Fees

• Lower 1% fee up to $10 for personal transfers
• ~2-3% transaction fees for merchants
• $3 monthly service fee for personal accounts
• Slightly higher 3% currency conversion fee but still competitive

Pricing model comparison:

• PayPal charges no recurring monthly/annual fees
• Payoneer charges minimal monthly fees for access to services
• Both platforms generate most revenue from per transaction fees

In general, PayPal has slightly better per-transaction rates for medium to large merchants while Payoneer offers lower fees for personal transfers and freelancer payments. PayPal's pricing favors higher volume sellers whereas Payoneer appeals to smaller players needing payment flexibility.

Payment Speed

In an increasingly fast-paced digital world, how quickly funds can be sent or received is imperative - especially when paying freelancers or staff.

PayPal Transfer Speed

• Instant bank transfers to transfer money between PayPal balances
• 1 business day for personal transfers to debit cards
• 2-3 business days standard for bank account withdrawals
• Same or next day transfers available for 1% fee on withdrawals

Payoneer Transfer Speed

• Near instant transfers and withdrawals to debit card
• Standard bank account withdrawals take 1-3 business days
• Supports real-time payments to enrolled banks or partners

Both PayPal and Payoneer enable instant internal account transfers. Payoneer has faster standard delivery speeds, often within hours for debit card withdrawals. PayPal offers expedited delivery for a small upcharge. Bank times are similar at 1-3 business days.

Payoneer specializes more in speedy payouts to freelancers which is evident in their faster baseline transfer times across transaction types. But PayPal also offers quick access to funds, especially when transferring internally or paying a little extra for same-day delivery.

Purchase Protection and Security Features

When sending or receiving money online, having appropriate protections against fraud and loss is essential for peace of mind.

PayPal Purchase Protection

• Covers eligible purchases and transfers against issues like non-delivery of goods
• Up to $20,000 per eligible claim
• Requires positive PayPal account balance for coverage
• Standard buyer and sender protections built-in

Payoneer Payment Protection

• Offers a Payment Protection Program to enable merchants to avoid losses from fraudulent sales or compliance fines
• Insures balance from unauthorized account access
• Standard $100,000 balance protection included with Business accounts
• 24/7 proactive monitoring against common fraud schemes

Both networks invest heavily in security protections leveraging artificial intelligence, machine learning, and human insight to catch any risky activity. Users on either platform can feel confident their money is in safe hands. Payoneer offers a higher level of specialized protection services catered to eCommerce merchants while PayPal provides solid general coverage.

Customer Service and Support

Reliable customer service can make or break the user experience when issues inevitably crop up involving financial transactions.

PayPal Customer Support

• Email, chat, phone, and self-service account support
• Responds quickly but communication can be disjointed across channels
• Reddit community provides unofficial help

Payoneer Customer Service

• Email, live chat, phone support available
• Touts 24/7 live chat and phone resulting in quick issue resolution
• More personalized support experience

Both PayPal and Payoneer have been working to improve customer service recognizing this crucial element for consumer and merchant retention. Previously, poor support plagued PayPal’s reputation but investments in staffing have enhanced responsiveness.

Payoneer pledges faster response times with average picks ups measured in minutes given specialized agents dedicated to niche international business accounts. But PayPal’s scale enables breadth across communication channels to touch all user preferences.

For most routine inquiries, either provider has efficient self-service account dashboards and help resources reducing reliance on asking an agent directly.

Conclusion and Recommendation

After comparing PayPal and Payoneer across crucial decision drivers, there is no universally best option. The right fit depends primarily on your use case and priorities.

Main Pros of PayPal:

• Leading brand recognition and immense consumer reach
• Competitive fees especially for medium-high volume merchants
• Very simple and quick account opening process
• Extensive purchase protections and security features

Primary Benefits of Payoneer:

• Specialized services tailored for international freelancers
• Lower fees on personal payments and currency conversion
• Faster standard payout speeds to debit cards
• High-touch customer service and support

Our recommendation?

For freelancers located internationally getting paid by clients worldwide, Payoneer provides the most seamless payment collection and fund remittance experience. Global currency support, low personal transfer fees, speedy payouts and strong customer assistance outmatch what even PayPal delivers.

However, for merchants with mainly US, Canada or Western European customer bases, along with other card-based transactions like eCommerce stores, PayPal likely rates as the best fit given better commercial transaction rates, broad consumer familiarity, and top-tier fraud protection included.

There you have it! We covered every key question around how PayPal and Payoneer compare - from fees to speed to purchase protection and beyond. Evaluate their pros and cons against your unique needs to decide the ideal solution.