Payoneer Alternatives: Payoneer Vs Paypal Vs Wise and more

Founded in New York in 2005, Payoneer is a leading global payments platform that facilitates international money transfers in over 70 currencies. It offers virtual local accounts, multiple payment options, along with digital FIRA to ease compliance for Indian businesses. 

While Payoneer is a go-to for many, its fees and customer support have not met everyone's expectations. If you're looking for an international payment solution, it’s wise to consider a few alternatives that might better suit your need

Payoneer Vs Paypal: Understanding the Differences

Payoneer

As we’ve discussed, Payoneer payment Gateway is a leading platform for businesses to send and receive international payments. Let’s take a quick look at some of its key features, pricing and areas of concerns.

Key Features

Pricing

Opening a Payoneer account is free, but there are charges associated with receiving and withdrawing payments. Let's understand their fee structure:

Receiving Payments in your Payoneer Account:

Payoneer to Payoneer payments: Free

Credit Card payments: 3% transaction fee

ACH Bank Debit (available in the US): 1% fee

Payments via Payoneer’s virtual accounts: Free

Withdrawing Payments from your Payoneer Account:

Same Currency Withdrawal:

Withdrawal in the same currency comes with following fixed fee

USD to USD: $1.50

EUR to EUR: €1.50

GBP to GBP: £1.50

Different Currency Withdrawal:

A 2% forex markup applies if you withdraw in a different currency. For example, if you receive a payment in USD and withdraw in INR in your local bank account, you’ll get INR 84.28 instead of INR 86 at the current exchange rate.

Annual Account Fee:

Payoneer charges $29.95 annually if your account is inactive for 12 months.

In a nutshell, as an exporter, if you are receiving and withdrawing international payments via Payoneer, the following fees will apply:

Concerns

Businesses choose Payoneer for its integration and convenience, however, the limited understanding of its customer support team and comparatively steep conversion rates have raised eyebrows. 

PayPal

In our discussion on Payoneer Vs PayPal, let's now talk about Paypal. It is a leading financial services company, and its credibility coupled with global reach make it a top choice for receiving international payments in India. The platform supports over 100 currencies and offers various payment methods, including credit and debit card payments and subscription models. Here's how you can open and connect your PayPal account with Skydo.

Key Features:

Pricing

The following are the PayPal fees associated with receiving international payments in India via Paypal

Transaction Fee: PayPal charges a 4.40% transfer fee on international business payments. For instance, receiving USD 1000 from a US client results in a USD 44 deduction.

Fixed Fee: A fixed fee, depending on the currency, is also applied alongside the transaction fee. 

Currency Conversion Fee: PayPal adds a 4% currency conversion fee to the prevailing exchange rate when converting foreign currency to local currency, which means you'll receive a lower exchange rate than the market rate.

In summary, as an exporter, you'll need to pay the following fees to receive international payments through PayPal:

4.40% transaction fee+ Fixed fee (approx 0.30 USD)+ 4% currency conversion fee. 

Concerns

PayPal’s ease of use and credibility make it a crowd favourite for managing cross-border payments but its significantly high pricing can be off-putting for many, especially for smaller businesses. 

Payoneer Vs Paypal: A Quick Rundown

Here’s a quick snapshot of Payoneer Vs Paypal along with Skydo, for a better understanding:

Which one is better, Payoneer or PayPal?

Deciding which platform is better isn’t straightforward, as both have distinct strengths. Payoneer offers lower fees for receiving international payments, while PayPal is renowned for its global credibility and widespread acceptance. Assess your specific needs to determine which platform aligns best with your business requirements.

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Payoneer Alternatives for Receiving International Payments in India

Beyond Payoneer vs PayPal, let’s take a look at a few other Payoneer alternatives that can help you receive international business payments in India with ease.

Stripe

Stripe, an Irish-American company, is a renowned payment processing and merchant services platform. Accepting over 135 currencies, it stands as a solid alternative to Payoneer for international payments.

Key Features

Pricing 

Stripe's fee for international transfers can be expensive as it includes a 4.3% transaction fee and an additional 2% currency conversion fee.

Concerns 

Stripe does not provide FIRA to Indian businesses and freelancers, adding to their compliance burdens. Users have also expressed concerns about transparency in their communication.

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Skydo

Skydo is a global payment solution simplifying cross-border payments for freelancers and small businesses in India. It offers virtual international bank accounts to its users in under 5 minutes and also supports an entire payments ecosystem consisting of payment tracking, invoice generation and more. 

Key Features

Pricing 

Skydo charges a flat fee of USD 19 for payments up to USD 2,000 and USD 29 for payments between USD 2,001 and USD 10,000.

Concerns

Currently, Skydo supports only inward remittances in India, allowing businesses to receive, but not send international payments. Additionally, it may not be the most cost-effective option for payments under USD 1,000.

Wise

Wise (formerly TransferWise) is a global money transfer platform operating in over 80 countries. Initially a peer-to-peer remittance service, Wise now offers multi-currency accounts for both individuals and businesses. 

Key Features

Pricing

Wise applies a conversion fee depending on the currency used. Broadly speaking, it is around 1.78% of the transfer value. 

Wise offers a mid-market exchange rate, which means it doesn't levy any forex markup. The platform also offers Digital FIRAs for Wise business accounts in India. However, it is available for an extra charge. For USD transfers it is USD 2.50. 

Here's what Wise will charge you for receiving USD 1000  and EUR 1000 in India 

Source

Concerns

While Wise offers a user-friendly interface and efficient money transfer services, some users have noted that customer support can occasionally fall short in addressing and resolving issues effectively.

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Ping Pong

Established in 2015, PingPong is a popular name in the cross-border payments arena, aiming to simplify international payments for freelancers, businesses, and e-commerce sellers.

Key Features 

Pricing 

PingPong charges a competitive 1% transaction fee, which is attractive but can become substantial for larger transactions. Additionally, since there is a lack of clarity around Ping Pong’s forex rate, there is a possibility of a markup on that rate.

Concerns

While their customer service is generally prompt, some users have found the onboarding process cumbersome.

Choosing the right payment partner for your business is crucial. Issues like the lack of FIRA, forex markups, currency conversion fees, and high bank fees can make international transactions costly and inconvenient.

When selecting your international payment provider, check the following factors and consider consulting a financial advisor as well:

Fee Information: International transactions can be expensive, and there's no standard pricing model. Look for a provider with competitive rates so you can keep more of your hard-earned money.

User Experience: Managing global payments should be straightforward. Opt for an easy-to-use platform and reliable customer support to ensure smooth transactions.

Compliance: Cross-border payments are closely monitored to detect any suspicious activity. Select a trusted payment platform that meets regulatory requirements and simplifies compliance for you.

At Skydo, we offer a fast, secure, and less-expensive solution for you to receive international payments. Switch to Skydo today and enjoy the best in international payment solutions for your business.