Payoneer vs Paypal – Which One is Better For Money Transfer?

Payoneer and Paypal both are famous companies for online money transfers. If you are a blogger or an online marketer, then you definitely use Paypal or Payoneer to send or receive money worldwide.

I’ve been blogging since 2016. During the initial days, I have limited options because I was not aware of the sources to receive overseas payment. The only option came before was PayPal. I remember when I made my first affiliate sale from blogging and that was the first time I used Paypal to receive the earned amount.

As soon as I started learning and making more money, I found some other payment services along with Paypal like Payoneer and Transferwise for international transactions.

Paypal and Payoneer both are popular companies in terms of sending and receiving money overseas. Till date, I have been using PayPal to send and receive funds. But what made me think of differentiating between Payoneer and PayPal are the transaction fees.

In this article, I’ll show you some major differences between Paypal & Payoneer with some examples that let you decide which service should you use for global payments.

Payoneer vs Paypal: Which One is Better?

I started using Paypal since the beginning of my blogging career and I started using Payoneer soon after when I started receiving money from Amazon affiliate program. Since then, I have been continuously using both services to receive and send payment internationally.

While using them, I found that both services are reliable, secure and offer good customer experience. But, there are still some points at which they both work differently. Here I’m putting the details below with some examples.

How does PayPal work?

To get started with Paypal, you have to create a Paypal account and doesn’t even require you to enter any bank account information. However, if you to receive payments directly to your local bank account, then you have to link your bank account with PayPal.

Your email address will be your Paypal address that will be used for sending or receiving payment. When you have to receive any payment from a client, you simply share your PayPal address with the person.

Paypal supports many currencies for money transactions.

Currencies supported by Paypal

After receiving payment successfully, either you can store your money to your Paypal account for making future payments or you can withdraw directly to your local bank account. It usually takes 1 to 7 days to transfer money to your bank account.

Note: In India, you can’t hold a balance in your Paypal account due to government regulations. Your balance will be auto withdrawn to your bank account within 24 hours.

How does Payoneer work?

To get started with Payoneer, you have to signup for Payoneer account and link to your local bank account. When you receive payment, it simply transfers to your local bank account.

Payoneer will give you a unique bank account details within USA, Europe, UK, Canada & Japan in order to receive payments Internationally.

Global payment Service Payoneer

I love this feature especially because of the Amazon affiliate program. Amazon affiliate provides a direct deposit feature to help you transfer the money to a US bank account.

You just have to put your Payoneer US bank account details and Amazon will deposit that money in USD into your Payoneer US account. And then Payoneer will convert and transfer that money to your local bank account. How cool is that?

What is the difference between PayPal and Payoneer?

Payoneer and Paypal both have some pros and cons in certain cases. PayPal is very widely accepted internationally. Most of the bloggers, affiliate marketing companies and eCommerce websites use Paypal for money transaction.

Although Payoneer is not widely accepted as Paypal, whenever you have an alternative option to get paid apart from Paypal, I recommend you to go with Payoneer.

After using both, do the comparison between their transaction fees. In the majority of cases, you’ll find that Payoneer will save more money than PayPal.

Let’s take an example.

When I used PayPal

When I received an amount of $100 from a client, I used PayPal to receive the money. Here’s the screenshot of my Paypal account transaction.

Receipt of Paypal payment

Paypal charged 4.4% + $0.30 of the amount transferred and they further charged 2.5% as the currency conversion fee. Their currency conversion rate is very low as compared to the Mid-market rate.

For example, if 1 USD = 67.98 then currency rate charged by Paypal is 1 USD = 62.26 INR.

So, I ended up with receiving: $94.45* 62.26 = 5,880.86 INR

When I used Payoneer

When I received $100 in my Payoneer account, the transaction amount to my bank account was completely different from Paypal scenario.

Payoneer doesn’t charge any receiving fee and their currency conversion rate is only 2% according to market standards

In total, I received: $100* 67.26 = 6,726 INR

So there is a difference of almost 846 INR by withdrawing my online payment from Payoneer. Isn’t good?


After using both services, we found that Payoneer offers the best currency conversion fee as compared to Paypal. But you can’t use Payoneer for every overseas payment because Paypal is widely accepted as compared to Payoneer.

Most of the bloggers and digital marketers use both PayPal and Payoneer at the same time. Whenever possible, I also prefer Payoneer to receive payments because it helps to save a big chunk of money. But, I’ll also keep using Paypal to get payments from clients and affiliate programs.

So, sign up on Payoneer now and start receiving and sending money overseas. You should definitely not miss the opportunity to get paid via Payoneer.

Which service do you use? Payoneer vs Paypal. Have you any queries about Paypal and Payoneer. Let me know in the comment section below!

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