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Payoneer Vs Paypal Vs Skrill

Payoneer Vs Paypal Vs Skrill

If you are looking for a straight fight between Payoneer vs Paypal vs Skrill, then you are not going to find one because they are all very different services. I admit that Skrill and PayPal may look similar to the outside observer, but in essence, it is like comparing a factory to a soda maker. In this Payoneer vs Paypal vs Skrill article, we compare some of the payment companies similarities, and we discuss how they differ. We also cover which payment company is suitable for which person.

Payoneer

Payoneer is a payment processing service that was built for small businesses, for entrepreneurs, self employed people, freelancers and emerging enterprises. It allows businesses and self employed people to streamline their payment process by putting much of the payment/invoicing burden on the person requesting payment. It does come with a MasterCard prepaid card, but users are unable to load money into it. With Payoneer, you either use Payoneer to pay other people, or you use it to receive payment and then withdraw it to your bank, or spend it with your Payoneer MasterCard.

Minimum transfer amount is USD $20

The minimum is $20 if the billing service is used. If you are a US customer, then your minimum transfer amount is $50 if making a payment.

Maximum transfer amount is $50,000 per month

If the billing service is used, you may only be able to pay as much as $2000 or $5000, as it depends upon your specific account level. The maximum is $25,000 in one day, or $50,000 per month. Limits are increased for businesses with a higher Payoneer account level.

Transfer methods

You may transfer online and you may use the Payoneer app. You may pay with your Payoneer balance, with a credit card, or with an echeck if you live in the USA. You may send money from Payoneer to Payoneer, or from Payoneer to a bank account.

Transfer Speed

It usually takes a few seconds to transfer. In many cases, your transfer happens within two hours of you sending the money. However, the terms and conditions state that transfers may take up to five days.

Available Currencies

AUD, CAD, CNY, EUR, GBP, INR, JPY, USD
You are able to transact with 150 currencies in more than 200 countries, but you may only hold a balance in the currencies listed above, which means you have to convert your currency if you receive one that is not listed above.

Currency Conversion Charges

You will not have to pay a currency exchange fee, but Payoneer does skim from the exchange rate, and they do it by slicing 2% off of what you would have got if you exchanged at the mid-market rate. Let’s say that you want to exchange US $100 for GBP. At the mid-market rate, it should get you £75.69. Payoneer take that amount and they add their 2% charge onto it. This means you get £74.18 for your $100.

Payoneer’s Ugliest Fees

The ugliest fee I have seen is their annual MasterCard fee. The company gives you a Payoneer MasterCard when you sign up, and then a year later you have to pay $29.95 for it because it has an annual fee of $29.95. Their ATM cash withdrawal fee and their cash-back fee isn’t winning any prizes either at $3.15 per transaction. If fees are a big factor in your Payoneer vs Paypal vs Skrill fight, then the withdrawal fee may be very off-putting.

PayPal

PayPal is a multifaceted tool that has many uses and services. It is an online wallet, and it also has lending facilities. It is an online exchange, and you may also use their PayPal Access MasterCard. You can set up a PayPal checkout that allows you to take PayPal payments, debit card payments, and credit card payments. It is an online wallet, money transfer service, global transfer and exchange service, a personal payment service, a business payment service, and it holds a wide range of currencies.

The greatest thing about PayPal is that you do not need a balance in your online PayPal wallet to use PayPal because it can draw money from your bank account to help you pay for things. Plus, PayPal helps to protect your bank and credit card details because it doesn’t expose your details to other companies, websites and merchants when you make a purchase online. You may set up invoices, payment requests, PayPal donation buttons and “Pay Me” links. It is also well known around the world, it has millions of users, and many websites accept PayPal.

Minimum transfer amount is USD $1

The minimum transfer amount isn’t the same as their withdrawal minimum. You can send less than one dollar, but the receiver will have to pay 32 cents to receive your dollar, so it doesn’t seem worth transferring if you are sending less than one dollar.

Maximum transfer amount is USD $10,000

As far as I understand, PayPal doesn’t have strict maximum transfer limits, and many times they simply follow the law of your country. For example, if your country says that the most you are able to transfer out of the country is $10,000 at a time, then PayPal sets its maximum transfer limit to $10,000.

Transfer methods

You may conduct your transfers online or by using the PayPal app. You may send from PayPal to PayPal account, and you may may transfer from PayPal to online checkout. If you have a PayPal MasterCard, then there are other ways to transfer money.

Transfer Speed

In most cases, your transfer is conducted in seconds. Sometimes, it may take up to two hours for your transfer to complete. In rare cases, it may take up to two days for the transfer to go through.

Available Currencies

AUD, BRL, CAD, CHF, CZK, DKK, EUR, GBP, HKD, HUF, ILS, JPY, MXN, MYR, NOK, NZD, PHP, PLN, RUB, SEK, SGD, THB, TRY, TWD, USD

PayPal’s Ugliest Fees

Their fee of 2.9% + 30 cents is not nasty, but it isn’t pretty either. PayPal doesn’t have many fees, but one of their ugliest fees is their exchange rate fee. Your exchange rate will always be between 2% and 2.99% higher than the market rate. That means that if you get an estimate for your currency conversion using Google, then PayPal will give you up to 2.99% less than what is shown on Google. When it comes to the Payoneer vs Paypal vs Skrill fight, it is probably their standard fee that puts you off a little, but it isn’t a deal breaker and only really affects people who are receiving large amounts each month and are then converting large amounts too.

Skrill

Skrill is an online wallet, and it allows you to pay other people. It is popular in some of the most under-served countries as it allows people in those countries to deal with people in developed countries. Skrill deals with many different types of currency, but what is more special is that it deals with countries that other online wallets do not. There are even eight countries where Skrill has joined forces with other payment companies so that Skrill customers may deal with people in those countries.

Minimum transfer amount is USD $1

If you try to transfer less then one dollar, then it is just not worth it because of the fees involved.

Maximum transfer amount is between $135 to $25,000 monthly

The maximum transfer amount depends on your type of account, if you are verified, and how trusted your Skrill account is. The amount you may transfer ranges from $135 to $25,000 per month.

Transfer methods

You may transfer via the Skrill website or via the Skrill app. Send money from your Skrill account to another Skrill account, or use your Skrill account to pay for things at a checkout. People are used to seeing PayPal as an option when buying things online, but some checkouts accept Skrill, including big named companies such as GoDaddy, and quite a number of worldwide gambling companies.

Transfer Speed

I am not a fan of Skrill because of its ugly verification and authorization process, but any transfers I have ever sent have happened in seconds. Some people say it takes between 2-3 days, so it must depend on which country you are from or where you are sending to. There must be factors that increase the transfer times from instant to up to three days.

Available Currencies

Skrill claims that is has 40 available currencies, but they are not too forthcoming about which they do and do not support. The list below contains 28 currencies I researched manually.
AUD, GBP, CAD, CZK, DKK, EUR, HKD, HUF, INR, ILS, JPY,MYR, MAD, TWD, NZD, NOK, PLN, RON, SAR, SGD, ZAR, KRW, SEK, CHF, THB, TRY, AED, USD.

Skrill also says that you may transfer to these countries too: Ghana, Indonesia, Nepal, Armenia, Philippines, Sri Lanka, Fiji and Albania. The list of currencies above only totals 28 currencies, so I imagine the remaining 12 currencies must have something to do with sending money to these countries. The reason these countries are singled out is because Skrill has set up a partnership with other companies in order to help people send money to and from these countries.

Skrill’s Ugliest Fees

There is a transaction fee that is 1.9%, which isn’t pretty, but it isn’t bad either. Their ugliest fee has to be their 3.99% currency conversion fee. Plus, your withdrawal fee may rise as high as 7.5%, which is unnecessarily high. In the fight between Payoneer vs Paypal vs Skrill, the withdrawal fee is obviously an outrageous expense. There are ways to lower the withdrawal fee, but they are mostly reserved for heavy users of Skrill.

Conclusion – Payoneer vs Paypal vs Skrill

In the fight between Payoneer vs Paypal vs Skrill, I have to admit that they each fill a need. In many cases when I write these types of article, I say that you shouldn’t limit yourself to just one and that you should pick the companies that are right for you. However, where PayPal is the company that everybody should have an account with, it seems that Payoneer and Skrill have a targeted customer base. In short, Payoneer and Skrill may not suit you. Allow me to sum up what each payment company does.

Payoneer vs Paypal vs Skrill – Payoneer

Payoneer is for business-to-business transactions. It is for businesses that wish to pay other businesses, which includes freelancers, self-employed people, small and middle sized businesses. Payoneer was built to take the hassle and fuss out of paying other people and companies, which is a great time saver if you often have to send different payments to different people on a regular basis.

Payoneer vs Paypal vs Skrill – PayPal

PayPal is the most sophisticated tool in this article because it has numerous functions, worldwide reach, and is viciously popular. It is the multiple-tool service that suits both private citizens, businesses and self-employed people. It has a bit of something for everybody, and it is very secure too.

Payoneer vs Paypal vs Skrill – Skrill

Skrill is filling a market gap by helping people do business with countries that other online wallets will not do business with. I have sometimes referred to Skrill as a crappier version of PayPal, but that is unfair because Skrill’s main aim is not to dominate as the best, but to fill the gap in the market where people in the east and middle east are unable to do business with people in developed countries.

Payoneer vs Paypal vs Skrill – You May Be Able To Choose All Three

Choose Payoneer if you spend an overly long time arranging payments each month, and maybe consider it if you have five or more employees that you wish to pay on a regular basis. Grab yourself a PayPal account as soon as you can because even if you do not use it to transfer money, it still offers oodles of protection if you use it to buy things online. Choose Skrill if you have clients and freelancers in other countries and your current online wallet or bank will not allow you to pass payments to and from those countries. If you are in a situation where your circumstances suit having a Payoneer, Skrill and PayPal account, then by all means you should get accounts with each.

About The Author

Ash The Great

After a varied career in different industries from the hospitality industry to the financial consultancy industry, Ash now spends his days working as a professional writer.

2 Comments

  1. Jon Dough

    Again another great and helpful review.
    I don’t understand the following statement…

    “The rate they offer will always be 2% higher than the market rate. In other words, you will get 2% less than the market rate when you make a currency exchange.”

    That kind of thru me into a What, loop?

    So.. how can it be quote..
    “The rate they offer will always be 2% higher than the market rate.
    And at the same time be….
    “2% less than the market rate when you make a currency exchange.”
    Huh?

    Reply
    • Ash The Great

      Let’s say that you want to exchange US $100 for GBP. At the mid-market rate, it should get you £75.69.

      Payoneer take that amount and they add their 2% charge onto it. This means you get £74.18 for your $100.

      I will go back and rejigger the sentence a bit.

      Reply

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