Payoneer vs Wise (formerly TransferWise) - Comparison Review

Payoneer and Wise (formerly TransferWise) offers a convenient way to send and receive international payments for businesses. But which one is more suitable for your business needs?

In this comparison article you’ll learn about Payoneer vs Wise, their features, costs, exchange rates and more. 

Let’s have a look and compare Wise to Payoneer. 

Payoneer vs Wise - Supported accounts

Payoneer offers a business account for both domestic and international payments, with multiple features to support businesses worldwide.

However at the time of writing they don’t offer a personal account.¹

This might seem irrelevant for a business owner at first, but let’s take a closer look at why your business can benefit from a personal and business account with the same provider. 

Wise offers both a Wise personal and business account to support all customers across the globe.

And did you know that sending money from a Wise currency account to another Wise currency account is fee-free? You’ll only be charged a small conversion fee if you’re sending money to a different currency. 

So if both you and your employees have a Wise currency account you can save on transaction fees when paying them domestically or overseas.

Payoneer vs Wise - Costs and exchange rate

Let’s compare the fees of Payoneer vs Wise.

Sending Payments

Both Wise and Payoneer have a fee-free payment method, if both you and your recipient have a Wise/Payoneer account. So if you’re sending money from your Wise/Payoneer account to another Wise/Payoneer account it’s free!²

When sending money from your Wise business account the following fees may apply:

Also, with Wise Business the more you send the more you save. Sending money above 100,000 GBP or equivalent (roughly 122,000 USD) will give you access to lower fees.

When sending money with Payoneer to a recipient that is not a Payoneer customer, the transfer fee will be up to 3% of the transfer amount. You may also have to pay a fixed fee when sending money from your USD, EUR or GBP account to someone whose bank account:

• Is in a country where the currency they receive is the local currency

• Is in the same country that you indicated in your Payoneer account

• Is in the same currency as your Payoneer account²

Receiving Payments

With the Wise Business account you can receive payments in 8+ major currencies like a local. For a simple one-time fee you’ll have access to a US routing number, IBAN, UK sort code and more. 

Wise won’t charge you for receiving payments to your account details, with the exception of receiving a US domestic wire transfer and a SWIFT transfer - this will cost 4,14 USD per transaction.

You won’t be charged for receiving ACH payments.

Setting up your account details are only a matter of minutes - you can then share these details with international customers, business partners and more to receive payments conveniently. 

Furthermore you can set up direct debits, withdraw profit from sales platforms as well as convert between currencies using the mid-market rate. 

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With Payoneer you can receive payments in 8 currencies.

Payoneer doesn’t state a fee to open these accounts, however they might ask for certain documents before opening a receiving account for you.³

Here’s a list of the available currencies with account details:

Payoneer currencies with account details
USD EUR GBP CAD AUD	SGD HKD JPY³

When comparing Wise vs Payoneer, currencies with account details are worth taking into account. As well as the Payoneer costs for receiving money. 

Payoneer won’t charge you for receiving payments to your receiving accounts as long as another Payoneer customer pays you.

You’ll be charged however for receiving:

• ACH bank debit directly by your clients - 1% of the transaction

• Credit card directly by your clients - 3% of the transaction

• USD payments - 0-1% based on eligibility, a minimum fee may apply

If you’re receiving below a minimum amount fees may apply²

The pricing is accurate at the time of writing, for up to date information please visit Payoneer’s pricing page.

Opening Payoneer receiving accounts may take up to 3 business days depending on certain factors and the geographic location of your business.³

Exchange Rate

Wise always uses the mid-market exchange rate, also known as ‘interbank-exchange rate’. The mid-market rate is the ‘real’ rate, the midpoint of buy and sell prices of two currencies.

To keep track of certain exchange rates you can use the Wise rate tracker, see how the rate changed in the last 30 days. Also, get rate alerts when a certain currency route hits the rate you desire.

Payoneer bases their rates on wholesale currency market rates and they also use XE to collect data. Even though they don’t refer to this rate as the mid-market rate, the wholesale currency rate is formed by the buying and selling of foreign currencies among financial institutions.⁴

Payoneer vs Wise - Features

Speed

Wise always tries to process your international business transfers as quickly as possible. In some cases your transfer can be instant or on the same day. 

Generally your transfers should take 1-2 working days, but the speed will mostly depend on the currency route and payment method you choose to send with.

Withdrawing money from your Wise currency account can be as simple as sending money to your local bank account. It works the same way as the ‘send money’ function so the same speed should apply as above.

Save time and money
with Wise Business

Payoneer states that your bank transfers should arrive to your recipient within a day. However they claim that this is an estimated time for most transactions.⁵

Withdrawing money from your Payoneer balance to your local bank account should take 2-5 working days, except for transfers within the US that usually takes 2-3 working days.⁶

Convenience

Managing payments to your Wise and Payoneer account is easy especially using the multi-currency account. 

Both services are accessible via the app - you can initiate payments and track your transactions through it. This is handy for business owners who want to be able to manage their payments on-the-go.

Payoneer supports withdrawals to local bank accounts in more than 150 countries.⁷

Wise supports sending internationally to 160+ countries. 

Did you know? You can also add your Wise Business account to Xero and QuickBooks for bank feeds and easy reconciliation.

Security and Reliability

Wise is registered with the Financial Crimes Enforcement Network (FinCEN) in the U.S and regulated around the world. It 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.⁸

Save Time and Money On Overseas Payments With Wise Business

Wise Business can help you save big time on international payments.

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in currencies.

Signing up to Wise Business allows access to BatchTransfer which you can use to pay up to 1000 invoices in one go. This is perfect for small businesses that are managing a global team, saving a ton of time and hassle when making payments.

Use Wise Business >>

Some key features of Wise Business include:

• Mid-market rate: Get the mid-market exchange rate with no hidden fees on international transfers

• Global Account: Send money to countries and hold balances in multiple currencies, all in one place. You can also get major currency account details for a one-off fee to receive overseas payments like a local

• Access to BatchTransfer: Pay up to 1000 invoices in one click. Save time, money, and stress when you make 1000 payments in one click with with BatchTransfer payments. Access to BatchTransfer is free with a Wise Business account

• Auto-conversions: Don't like the current currency exchange rate? Set your desired rate, and Wise sends the transfer the moment the rate is met

• Free invoicing tool: Generate and send professional invoices

• No minimum balance requirements or monthly fees: US-based businesses can open an account for free. Learn more about fees here

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Sources:

1. Payoneer - Payoneer account
2. Payoneer - Fees
3. Payoneer - Receiving accounts
4. Payoneer - Conversion rates
5. Payoneer - Make business payments
6. Payoneer - Withdraw payments
7. Payoneer - Local bank withdrawal
8. Payoneer - Security

All sources checked 14 December 2023