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As a business continues to grow, sorting out its financial and banking aspects becomes important. Setting up a business account is a crucial step that can...
Payoneer vs Wise (ex. TransferWise) Business in Australia. Which is for you?
Businesses of all types in Australia are always looking for ways to save money on financial transactions. Many financial institutions, on and offline, offer business accounts. It’s hard to know which one to choose.
We’re going to compare the Payoneer business account with the Wise Business Account. Let’s get in.
| 💸 Looking for a stress-free international business account to pay abroad like a local? With multiple cards, AUD and foreign currency account details? |
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Business account
Who is Payoneer?
Founded in New York City in 2005, Payoneer offers a business multi-currency account for receiving payments, holding and sending payments globally. Its business clients range from freelancers to aspiring entrepreneurs to leading digital brands.¹
Who is Wise (ex TransferWise)?
Wise, formerly known as TransferWise, was founded in 2011. Wise offers financial services to handle your international finances. From international transfers to holding money in multiple currencies, Wise also offers customers personal and business debit card access.
Payoneer vs Wise main business features
When choosing a business account, it’s the features that align with your daily operations that need to be considered.
| Service | Payoneer² | Wise |
|---|---|---|
| Online sign-up | Yes | Yes |
| Local and international account details | Account details in 8 currencies³ | Account details in 10 currencies |
| Foreign Exchange (FX) services | Yes | Yes |
| Physical and/or virtual business cards | Physical and virtual debit Mastercard | Physical and virtual debit Mastercard |
| Online payment function | Yes | Yes |
| Direct debits, recurring payments, batch payments | Yes | Yes |
| API integrations, accounting software, online financial management | Xero premium Quickbooks integration is available for UK and the EEA with other countries to follow soon⁷ | API integrations include N26, Monzo, Xero, GoCardless, Deel, Remote, Emburse, Preply, Gameflip + others (region dependent) |
| Mobile / Web App | Yes | Yes |
As seen on 23 November 2022
They both have very similar business offerings. They differ slightly in the local account details and API integrations, where Wise has more options.
Payoneer vs Wise business — the fees
The main difference between financial providers is in the fees they charge. Here is the breakdown of the main fees charged by Payoneer and Wise in Australia.
| Service | Payoneer⁴ | Wise |
|---|---|---|
| Account opening fee | Free | Two options: Free account option for sending money or one time $22 set up fee to set up a business account and get local account details |
| International transfer fees - receiving | Free Payoneer to Payoneer Free to your receiving accounts except: USD 0–1% ACH bank debit by clients 1% Credit card by your clients 3% | Free Wise to Wise No fees for receiving payments into your Wise local account details except: $4.14 USD to receive USD via SWIFT or wire transfer into your USD balance |
| International transfer fees | Free Payoneer to Payoneer Up to 2% of the transaction amount Fixed fee of 1.50 - EUR/GBP/USD When you use your EUR, GBP or USD balance to make a payment to someone whose bank account:
| Free Wise to Wise Starting at 0.41%, varies by currency Fee is calculated and offered upfront (check out the Wise pricing calculator here) |
| ATM Fees - Withdrawals | Based on the currency being withdrawn: 3.15 USD 2.50 EUR 1.95 GBP | Free for two withdrawals collectively up to $350 AUD per month each card 1.75% + $1.50 AUD per withdrawal over the $350 per month limit |
As seen on 23 November 2022
Both companies are extremely transparent with their fees upfront. However, Payoneer has a few extra levels of charges based on transaction type and currencies.
| Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up-to-date pricing and fee information. |
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Payoneer vs Wise — Exchange rates used
You can obtain exchange rates from several places. Here’s how Payoneer and Wise get theirs.
| Payoneer⁵ | Wise |
|---|---|
| Based on wholesale market rates and a built-in currency conversion fee | No margin. The FX is based on the mid-market rate like the one you’d see on XE or Google. |
As seen on 23 November 2022
Knowing what rate is used to convert your currencies is vital. Both companies make these rates available at the time of the transaction.
The difference is that Wise uses the transparent mid-market rate which you can easily confirm. Payoneer uses wholesale market rates that they source from various places.
| Read more: Airwallex vs Wise in Australia. |
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Accepted money transfer pay in and pay out payment methods
Here are the numerous ways Payoneer and Wise can receive and pay out funds.
| Payoneer³ | Wise | |
|---|---|---|
| Pay in options |
|
|
| Pay out options |
|
|
As seen on 23 November 2022
Wise and Payoneer both have a broad range of pay in options. They can also transfer to each other via local account details.
Payoneer vs Wise business supported currencies
Local currency accounts and supported countries and currencies differ per provider. Here’s what Payoneer and Wise have:
| Payoneer | Wise | |
|---|---|---|
| Local currency account details (So you can receive in locally denominated currency) | AUD, USD, JPY, EUR, HKD, SGD, CAD, GBP³ | AUD, GBP, NZD, EUR, USD, SGD, RON, CAD, HUF, TRY |
| Currencies supported to send and convert transfers in | 190+ countries³ | 150+ countries and in 40+ currencies See the list here |
As seen on 23 November 2022
Wise has 2 different local currency accounts, but Payoneer has a larger number of supported countries to send transfers to.
| Read more: Payoneer account in Australia |
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Sending money abroad – Payoneer vs Wise
Speed is extremely important when sending money internationally. Here’s what they both can offer:
Payoneer
Payoneer states that payments from Payoneer to Payoneer accounts appear within 2 hours. Payments to supplier bank accounts are 1–2 business days.³
Withdrawal to your nominated account can take 2–3 business days in the US or 2–5 business days in other countries, including Australia.⁶
Wise
Most of the time, transfers should take 1-2 working days. The speed depends on the currency route and payment method chosen. In some cases, Wise international transfers happen within seconds.
| Note: The speed of transaction claim depends on funds availability, approval by Wise’s proprietary verification system and systems availability of our partners’ banking system, and may not be available for all transactions. |
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Payoneer vs Wise – Pros and cons
Which one is the right choice for your Australian business needs? These pros and cons will help:
Payoneer
Pros
- Free transfers Payoneer to Payoneer
- Local account details in 8 countries
- Debit Mastercard access
Cons
- Fee structure can appear a little complicated based on all the variables
- Xero is the only integrated API
- Sending payments is online only, no cash-outs
Wise
Pros
- Free transfers Wise to Wise
- International transfers can be conducted by personal or business customers
- API integration with 9+ partners
Cons
- Cannot pay in/out with cash - online only
- Supported countries list is less than Payoneer’s
What about safety?
Payoneer Australia PTY LTD (ACN 621 926 501) and is regulated by the Australian Securities and Investments Commission (ASIC) under the Australian Financial Services License number 504803.¹
Wise meets the specific requirements set out by each country where it operates. In Australia, Wise is supervised by ASIC under Australian Financial Services Licence (AFSL licence number 513764) and authorised as a Purchased Payment Facility (PPF) provider by the Australian Prudential Regulation Authority (APRA).
Wise has dedicated compliance teams and systems working 24/7 to keep our customers’ money safe.
Online reviews for Payoneer and Wise
Here’s what Australia has to say about both Payoneer and Wise.
| Payoneer reviews⁸ | Wise reviews⁹ |
|---|---|
| Trustpilot Australia review: 4.3/5 star rating with around 46,000 reviews and 5 stars from more than 76%. | Trustpilot Australia review: 4.5/5 star rating with almost 180,000 reviews and 5 stars from more than 84%. |
As seen on 23 November 2022
Wise has a slightly higher score than Payoneer and considerably more reviews.
Customer support options
Australian companies can contact Payoneer or Wise:
- Visit Payoneer’s support page, check FAQs, read blogs or engage with a community
- You can contact Wise via phone, email, or logging into your account and accessing the help page.
Wrapping up
Payoneer and Wise have similar product offerings for Australian businesses.
When deciding between the two, the decision is up to you, but consider these things:
Both offer multi-currency accounts that can receive, hold and send funds.Debit cards are also offered by both and can be used globally wherever Mastercard is accepted.
The differences are in the fees charged, and the countries offered to send payments.
Wise currently offers more local currency accounts than Payoneer. Wise and Payoneer compliment each other. Link your Wise account to Payoneer and then exchange money at the mid market rate.
Internal transfer speed is similar with both. Payoneer to Payroneer can take up to 2 hours, and Wise can do some of its own in seconds. The rest range from hours to a few days.
Wise’s fees are slightly lower and easier to understand. Payoneer currently supports payments to more countries.
Why Wise?
If you’re tied between the two, consider what Wise can do.
Wise offers a hassle-free, all-in-one business account. There are no monthly fees, hidden charges or high rates.
Get paid, manage your cash flow, and even pay employees. Integrate with a number of APIs for seamless reporting.
Convert money between currencies in your Wise Account in seconds at the mid-market rate. Hold over 40 currencies in one account.
Use the debit Mastercard for international instore or online purchases without paying foreign transaction fees.
Wise offers accounts for personal users as well as business, and even non-Wise Account holders can send international transfers.
Join 13 million customers who are already enjoying Wise. Signing up takes all but a few minutes.
Register your Wise business account
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Sources:
- Payoneer About us
- Payoneer Product features
- Payoneer Multi-currency account
- Payoneer Fees
- Payoneer Conversion rates
- Payoneer Withdrawal speed
- Payoneer Quickbooks integration
- Payoneer Trustpilot AU review
- Wise Trustpilot AU review
Sources checked on: 23 November 2022
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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