PayPal vs. Payoneer: Which Is Better For Business Owners?

Getting paid is one of the most critical aspects that you need to take care of when running a business, whether it’s an e-commerce, coaching, or service-offering business type. At one point, you’ll also find yourself sending out payments to vendors and freelancers if you’re outsourcing your work. Because this is a crucial step in managing your business, you need to find and use a reliable payment processor for all your needs. In the industry, two names stand out, and these are PayPal and Payoneer. Which one is better, and which one is right for your business?

There is no denying that both PayPal and Payoneer have an excellent reputation as a payment processor. Still, no matter how much they sound alike, both have different features, which may differ according to one’s needs. To help you decide which one is better for your business’ needs, let’s first discuss their features.


PayPal is famous in the e-commerce industry if you haven’t heard about it just yet. If you compare PayPal vs Payoneer, many e-commerce stores use PayPal as their payment processor because of its convenience and security features. With a PayPal account, buyers don’t need to input their credit card information all the time, which is pretty convenient, especially for those regular online shoppers. This means that your buyers are just one step away from making that purchase.

Their payment processor and the system can be customized based on what your needs are. Suppose you’re using Shopify, Mail Chimp, WooCommerce, and other famous e-commerce platforms. In that case, you may easily integrate PayPal as your mode of payment, which is another thing that’s less to worry about.

Other than its built-in payment processor, PayPal also allows you to set recurring payments, making it an excellent choice for subscription payment plans. Whether you’re a coach, a financial advisor, or offering a monthly service, you can easily bill your customers and not have to worry about manually sending them an invoice or requesting funds. PayPal takes care of all of these for you.

When it comes to sending money, you may use your credit card or debit card. Alternatively, you may also add a PayPal balance with your savings or checking account. Using your PayPal balance gives you cheaper rates whenever sending money to other people, especially from outside the country. This gives you the flexibility to choose your funding source.

You may want to know that PayPal has transaction fees, which may vary depending on the type of transaction you’re doing. It is also computed based on the total amount with percentage fees ranging anywhere between 2.1 – 3.1%. 


Payoneer works a bit differently from PayPal. With Payoneer, you may transfer payments to other individuals and companies, receive payments, and manage other companies’ funds. These things are facilitated without having to worry about complex bank accounts and cards and can be done all from within your Payoneer account. You can use Payoneer as a replacement for your bank account when receiving payments from companies or clients. This makes it easier to manage your funds and cashflow. 

On the other hand, you can also instantly send funds to your off-shore staff, freelancers, suppliers, and partner companies, given that they also have a Payoneer account. 

With Payoneer, you may also request a card that you can use as a debit card. Swipe on stores, or use it for your online purchases. The funds will be taken from your Payoneer balance, convenient, especially if you don’t want to hassle yourself with transferring funds from your Payoneer account to your bank account. 

Otherwise, you can transfer funds from your Payoneer account to your business bank account and expect the money to reflect on your bank within 3-5 business days.

The Verdict: PayPal vs Payoneer?

Both payment processors come with a mobile app, making it easier to access even when you’re on the go. Both have an encrypted website when it comes to security, which means your details remain safe and secured and aren’t stored anywhere else. 

PayPal is best suited for e-commerce platforms; there’s no denying that. Its convenient payment processor, checkout buttons, and easy integration with other e-commerce shops make it a breeze. Sure, you can also send international transfers with it, which is a bonus if you’re sending out payments every once in a while. It can fill that gap, but the rates and forex exchange rates may also be ridiculous.

On the other hand, Payoneer is better if you’re dealing with B2B transactions. If you’re sending out payments to clients and freelancers, this might be cheaper and is more convenient for you. For e-commerce payment solutions, Payoneer might be lacking a bit in this area. But, if that isn’t your primary concern, then there’s no denying that Payoneer is the right choice for your business.