Payoneer helps companies get paid around the world, much like PayPal. Founded by Yuval Tal in 2005, the company has disrupted e-commerce and mobile payments around the world. They facilitate transparent international payments in more than 200 countries. They aim to facilitate payment in developed and emerging markets around the world. The innovative payment company has worldwide notable customers including but not limited to Airbnb, Amazon, Google, and Upwork.
The platform holds about 4 million users from more than 150 countries across the globe. Once registered with the service, the user is able to accept payments from customers around the world and withdraw money from their local bank or worldwide. There is a 3% fee charged with direct payment via credit card. There is no fee when receiving payments from a fellow Payoneer registered user.
Why is Payoneer so useful to modern e-commerce companies?
Dropshipping is a common practice within the e-commerce industry. Using this method, retail stores do not have to maintain an inordinate amount of inventory.
Alternatively, ordered items are shipped from the manufacturer to the customer. This third party formula saves both money and time for ecommerce businesses. This is a method used by both small and large companies around the world. Inventory is known as a pitfall in any retail business. It has led many companies to financial bankruptcy.
In dropshipping, a third party handles returns, negotiates shipping deals, pays the warehouse and manages inventory. The bottom line is that Dropshipping reduces your costs at large and allows you to scale with ease. But in order to manage this type of business model there needs to be a legitimate form of payment that makes financial and practical sense. An online platform such as Payoneer is great for these standard practices. But wait a minute, what about PayPal, another leading payment system?
Paypal vs. Payoneer – Who wins?
It is not possible to link Payoneer to a Paypal account, as these companies have competing services in the market. You can, however, transfer money from either account to respective registered users or your personal bank.
How do the two measure up to each other? Payoneer customer service is superior to Paypal as they have phone assistance, which makes a great difference to online chats. Payoneer offers a free $50 coupon whereas PayPal does not offer a reward for joining the service. Payoneer’s fee is 0-3% per transaction (depending on if the other party is a Payoneer user, and if there are credit cards involved in the transaction), whereas PayPal differs from 4% to 5% above the market exchange rate. User ratings have noted that Payoneer is notably superior to PayPal.
What do the two have in common? The two work at the same speeds, zero to three days. Neither have regular payments. Both have mobile apps.
As you can see, the two companies are similar in many ways. But there are two crucial defining features that set them apart, fee and customer service. In both of these areas, Payoneer comes out as a smarter option. Opting for great customer service allows Payoneer to retain customers, whereas a 0-3% fee is definitely a lucrative incentive to switch companies from PayPal, especially if you’re managing a dropshipping business and need reliable support and efficient communication.