Payoneer offers a convenient way to send and receive international payments with reasonable fees and conversion using the mid-market rate. However, withdrawing from your Payoneer account is not always the cheapest.
Wise Business might be able to save you a few bucks on some of your international transactions.
Let’s have a look at how Wise is compared to Payoneer.
It's free to receive payments to both Wise and Payoneer accounts. However, sending from them comes with an extra cost.
Let’s have a look at this quick at-a-glance price comparison table for a $1000 transfer to EUR
|Exchange rate mark-up||0||0|
|Total transfer fee||$5.19||$10|
Payoneer charges up to 2% of the amount being transferred regardless of the currency.¹ There’s also a risk of getting charge a receiving fee by the bank as well as intermediary fees. This means that the overall withdrawal cost can range from $10 - $40.
Withdrawals from a Wise account don’t incur receiving bank fee as most transactions are being processed locally. The total fees to transfer $1000 to EUR is only $5.19. If you're sending it to a local bank account in the same currency (USD), the fee is only $1.40.
Wise always try to process transfers as quickly as possible and manages to offer instant transfer for some of the major currency routes. Some currencies generally take 1 - 2 working days. Payoneer’s international transfer speed is also typically 1 - 2 working days.³
Receiving payments to your Wise and Payoneer account is easy especially using the multi-currency account.
Both services are accessible via the app - you could initiate payments and track your transactions through it. Both can be integrated to accounting software to help ease tax reconciliation.
Wise, registered with the Financial Crimes Enforcement Network (FinCEN) in the U.S and regulated around the world, has extensive security measures in place to protect your payments. This includes business verification, 2-step login and dedicated anti-fraud teams.
Payoneer has security protocols and technologies in place to protect their customers from financial crimes. They also have a business verification process and 2-step login.²
Payoneer provides local accounts in USD, EUR, GBP, JPY, CAD, AUD and MXN so you can receive transfers in these currencies for free. They also support conversion to CZK, PLN, RUB and VND but only available for tax payment purposes (subject to availability).⁴ Unfortunately, transfers coming from your own account (self-loading) are not supported by payoneer. All transactions have to be business related and should come from a third party.
If you have multiple contractors and vendors, you could use Wise to execute mass/batch payment to remove the hassle of making 10 or more single transactions.
You can integrate Wise to an accounting software called Xero to ease tax reconciliation.
Most importantly, you can top-up your Wise balance from your own bank account and transfer the money across.
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