PayPal vs Payoneer | Which Virtual Payment is better?

Looking for a virtual payment service? Can’t decide between PayPal vs Payoneer? This article will help you pick the best one for you.

Paypal vs Payoneer-online payment platform

If you want to do online business or perform digital payments, then you might have run into the problem of deciding where you want to make the transaction, because, perhaps, your bank doesn’t exchange foreign currency on your current bank account. In addition, the banks may not give you a credit card in case you don’t have a real business or an income statement to show, or simply you choose not to use credit cards.

If you’ve run into such problems, then you’re not alone. Many people have this issue. So, what do you do? You need to make a transaction!

This is where PayPal, Payoneer and many other virtual payment systems come along.

Virtual payment systems like PayPal or Payoneer are like your online credit card that you can use for international transactions. Not only that, but some of these virtual payment services also offer dual currency account and a physical card issued through your bank that you can use worldwide.

And when it comes to virtual payment systems, PayPal and Payoneer are the two well reputed and trusted service providers. So, if you’re having a problem choosing between the two, then read along.


Payoneer first started its business in 2005 as a financial service provider, offering services like digital payments, digital money transfer, and more. They are also known for their service of providing MasterCard worldwide. And well-known companies like Airbnb, Fiverr, and many others use Payoneer for their online transactions.

Pros of Payoneer

With Payoneer, you can avail of their services almost every place you can think of. They provide their services in nearly two hundred countries while supporting a hundred and fifty local currencies. With a virtual payment service provider, you can virtually spend money and save it, but with Payoneer, you also have the option to own a physical debit card. With the debit card, you can withdraw funds, spend and earn money inside and outside of your country.

And if you’re operating in the United States, then you can make your payments through e-check. With their billing service, you can pay other Payoneer users with ease. Not only that, with Payoneer, you’re also getting a mobile application to handle these transactions.

Payoneer provides a MasterCard provider; however, it is not a visa card. You can use this card like any other debit card for almost all of your transactions, be it in the store or online. With the issued card, you can also make payments without transferring funds to your local bank and picking the funds up from there. This allows you to make payments faster and with ease.

When building a good company, be it with service providers or product manufacturers, having an excellent help desk along with a customer care service is essential. Unfortunately, many companies are not the best at providing proper customer care. However, that is not the case with Payoneer.

With Payoneer, you can always reach them by any means, including through phone, or via email. You can also use their live chat or their website. Aside from these, on their website, you will find sufficient resources to help you expand your horizons.

Cons of Payoneer

Like everything else on planet earth, Payoneer is not flawless. It has some limitations, which, to some people, can be a huge problem. When it comes to fees, rates for exchanges, Payoneer has a higher rate than PayPal. And if you’re operating in any currency other than the US Dollar, then based on your local currency, you can see a rise in the conversion fee from 2% to almost 3%.

Another drawback of Payoneer is that they charge you with fees for using their MasterCard every year. The problem with the MasterCard doesn’t end here; the process to get a MasterCard is lengthy and requires much paperwork.

Besides that, Payoneer does not let you transfer money to other third party accounts, and this could spell trouble for you if your client does not use Payoneer.


PayPal is another very well-known service provider when it comes to online payment. The company was established in 1998 with the name Confinity. In the year 2000, Confinity and joined forces to become today’s PayPal that we have come to know and love. Currently, PayPal is the most recognised and globally used payment service.

Pros of PayPal

Whether you’re using PayPal individually or as a company, you have nothing to worry about. PayPal has found its way into many accounting and CRM sites that use PayPal as a route for an automatic payment process. PayPal also has its own MasterCard. The only exception is, like many other banks, it doesn’t charge you for using their MasterCard as Payoneer does.

If you’re using PayPal for a one-time transaction, then you can do it without the hassle of opening an account. However, if you’re using PayPal frequently, it might be best for you to open a PayPal account.

When it comes to mass-payment, PayPal takes the crown as they allow you to pay up to ten thousand people at once without charging you a dime. Overall, with the number of people using PayPal, it can consider itself as a bank.

Cons of Paypal

Paypal has drawbacks, just like Payoneer. When it comes to charges, for using PayPal’s MasterCard in an ATM booth, you will be charged with $3 every time, but that’s just a minor drawback. Like Payoneer, PayPal also has a high currency conversion rate, which starts from 2%, up to 2.75%. Moreover, PayPal has a high transfer fee, charging you from 0.3% up to 7.4%.

But that’s not the most significant drawback. The biggest drawback is that PayPal will sometimes put your account on hold, disabling you from making a payment. This can be very troublesome for businesses.


Paypal vs Payoneer

Whether you will use Payoneer or PayPal depends on what you’re using it for, its availability in your country and the needs of your business. At the end of the day, both are very good at what they do, and both of them provide excellent service and satisfaction.

I personally use both and they are both legit platforms. However, I appreciate your comments with good or bad experiences your end. 

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2 thoughts on “PayPal vs Payoneer | Which Virtual Payment is better?”

  1. I have used both of the payment gateways and really I think they both are very good and one can actually say that life gets easy with them. I believe that paypal is slightly better than payoneer though especially because I the fact that it is more recognised but one thing again is that PayPal usually seizes money most of the time and blocks people’s accounts if there’s a slight issue.

    • Hi, thanks for your insight on both payment companies. I use both PayPal and Payoneer as some businesses work with one and not the other. Both work fine for me. Thank you for writing. 


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