When you think “online money transfer” you probably think “PayPal.” Yet for fifteen years another Fintech company has quietly been growing to become the choice payment solution for many businesses across the globe. This company is Payoneer–and if you’ve never heard of it, but own a small business that sells across borders online, it’s something you should become acquainted with.
Payoneer: What Is It & Its History
Payoneer was founded in 2005 and since then has grown into a billion-dollar company. At its core, Payoneer is an online money transfer company. It allows the facilitation of funds from one person to the next.
Sounds a lot like PayPal, doesn’t it? But in fact, Payoneer is very different. Payoneer’s main business revolves around enabling online money transfers from one business to the next (known as B2B, or business-to-business). While PayPal can certainly be used for B2B transactions, it’s mainly a customer-to-customer (C2C) or customer-to-business (C2B) money transfer facilitator.
But besides just facilitating B2B online transactions, Payoneer also specializes in cross-border transactions. These are transactions that go from one country to the next–and often involve currency conversions. What Payoneer does is facilitate cross-border transactions without the sender or receiver having to worry about working out the foreign exchange rate on the currency conversions themselves.
Who Uses Payoneer?
Payoneer has a massive user base. Matter of fact, in 2019 the company had four million customers (mostly businesses) facilitating transactions in 150 different currencies and 70 different languages.
While most businesses who use Payoneer you may not have heard of if you don’t operate in that business’s specific industry, Payoneer also counts massive big-name companies among Payoneer users. These companies include Upwork, Airbnb, Fiverr, 99Designs, and iStock, among others.
You’ll notice that the similarity among those companies is that they all run massive marketplaces that involve tens of thousands of transactions–many cross-border–a day. Payoneer, therefore, is the payment processor that facilitates those marketplace transactions.
Why Should I Use Payoneer?
If you’re just sending money from you to a friend or family member, other services like PayPal are the better choice. However, if you are a business and you pay contractors or suppliers in another country, or you receive payments from customers all over the world, a Payoneer account is probably for you.
How Do I Get A Payoneer Account?
First off, understand that Payoneer offers many different types of accounts–the account that is best for you depends on your needs. The good news is Payoneer has a very useful tool that allows you to select what your business is, as well as what you are looking to do, and then asks you what you think your monthly volume will be.
Once you input the answers to those queries, you’ll be presented with the type of Payoneer account that best suits your needs, whether that’s an account for a freelancer, e-commerce owner, or enterprise customer.
Does Payoneer Cost Money?
Setting up an account is free, as are Payoneer-to-Payoneer customer transactions. However, if you bill your customers via Payoneer’s billing service, fees are 1% of the transaction if the customer uses ACH Bank Debit and 3% of the transaction if the customer uses a credit card. You can see more about Payoneer’s fees here.
Is Payoneer Safe?
No company is completely safe from hacks or data breaches, but from a trust standpoint, Payoneer can be considered a “safe” company. Payoneer has been around for fifteen years now and has a number of well-known VC backers.
Frequently Asked Questions
Q: Is Payoneer better than PayPal?
That depends on what your business is. Payoneer was designed for business customers, whereas PayPal originated as a way for people to send money to each other too. But if you own a business that deals in international payments, Payoneer could be the better choice for you.
Q: What percentage does Payoneer take?
Payoneer takes the following percentages for fees:
- 1% fee on all ACH Bank Debit transactions
- 3% fee on all credit card transactions
Q: How long does it take to receive money from Payoneer?
If your transactions are done within the borders of the United States, you’ll generally receive your money within 2-3 business days. If your transactions are cross-border, you’ll generally receive your money within 2-5 business days.
Apple expert and novelist, Michael Grothaus has been covering tech on KnowYourMobile for the best part of 10 years. Prior to this, he worked at Apple. And before that, he was a film journalist. Michael is a published author; his book Epiphany Jones was voted as one of the best novels about Hollywood by Entertainment Weekly. Michael is also a writer at other publications including VICE and Fast Company.