Payoneer is a financial services firm based in New York that was started in 2005 by Yuval Tal. It offers a wide range of services, including online money transfers, working capital, and digital payments. As of 2019, the company employs over 1,200 people and serves over 4 million consumers. Let’s take a closer look at how Payoneer works.
Pros
- It operates in about 200 countries and uses 150 different currencies.
- It allows you to send money between Payoneer accounts for free.
- It has the ability to create personalized invoices and accept payment requests from individual clients.
- Payoneer has a robust customer service system that includes email, live chat, and phone support.
Cons
- There are significant transaction costs when using a credit card.
- It is not a supported payment mechanism and so presents a barrier to e-commerce transactions.
- For overseas transactions, it charges a 2% currency conversion fee. It also has a yearly fee for Mastercard usage.
What is Payoneer, and how does it work?
Payoneer has gone a long way from its inception in 2005, from a $2 million seed investment to a 2019 valuation of over $1 billion. To address the B2B transactions sector, the company purchased Armor Payments, an internet escrow company, in March 2016.
In August 2016, the company added an automated tax form service to its bulk payout product. In mid-2019, it also expanded its Finance Advance service, which provides fast working capital access to e-commerce internet sellers like Amazon and Walmart. It also announced a merger with FTAC Olympus Acquisition Corp. (FTOCU) in February 2021, and it went public on NASDAQ on June 28th, 2021.
Payoneer has been used by global operating firms such as Amazon, Google, Airbnb, Rakuten, Walmart, Wish.com, and freelance platforms such as Fiverr and Upwork for large payouts around the world. It provides cross-border wire transfers, refillable debit card services, and online payments in more than 150 local currencies across 200 countries.
Let’s have a look at some of its advantages and disadvantages.
Is Payoneer a secure payment method?
Payoneer is a legitimate US firm with a US Money Service Business registration (MSB). It has been in business since 2005 and is PCI Level 1 Data Security Standard certified, which means they must maintain a high level of security on their networks and systems. It is also registered with the US Financial Crimes Enforcement Network (FinCEN) and files Suspicious Activity Reports (SARs) on a regular basis to strengthen the security of its platform and clients.
Physical security and data integrity protocols have been adopted. They also keep their protocols up to date to prevent data loss due to unforeseen events. Aside from that, virus detection systems and firewalls are in place to secure the access points from tampering and hacking. Furthermore, they must undergo a PCI audit of their entire IT system.
To protect transactions from phishing, theft, and fraud assaults, advanced anti-hacking tools and firewalls are used. It also provides email notifications for business and account changes, and any unexpected transaction is quickly brought to the customer’s attention via email.
Platform and Functions
Aside from international payment services, Payoneer offers a number of other services. It has also partnered with a number of firms in order to broaden its services.
Payment Service on a Global Scale
Payoneer makes it possible for you to receive local bank transfers from multinational corporations in the United States, the European Union, the United Kingdom, Japan, Canada, Mexico, and Australia directly to your Payoneer account. The money can then be transferred to a bank account in your own country.
Payment Request / Billing Service
By sending an invoice to your client, you can request payment through Payoneer. You will then receive payments from them directly to your bank account, which will be channeled through your Payoneer account.
VAT must be paid.
Payoneer allows businesses to pay the VAT authorities in the UK and EU for free using monies in their Payoneer account. Simply provide Payoneer all of the necessary information, including the amount, VAT number, country, and Payoneer account ID, and they will process the payment before the due date.
Facility Manager StoreI
ts Store Manager feature aids in the management of payments for various stores across multiple markets, assisting in worldwide expansion.
App Payoneer
You may use the Payoneer app to request payments, withdraw funds, and make payments, among other things.
Commissions & Fees
The following are the Payoneer costs for various services:
Payment Receipts
- Receiving payments from another Payoneer customer’s Payoneer balance is free.
- Payments received in receiving accounts in local currencies such as EUR, GBP, and others are free, however payments received in USD incur a fee of 0-1 percent.
- Receipts for Payment Requests- The fee for receiving money from clients via credit cards in Payoneer is 3%, but the rate for payment by US ACH Bank debit is 1%.
- Directly from marketplaces and networks- The fees obtained from Payoneer’s many integrated partners, such as Fiverr, Upwork, Airbnb, and others, vary. As a result, you should double-check the prices with the relevant platform.
Funds Can Be Withdrawn
- For withdrawals to a local bank account in the same currency, there is a flat charge of $1.50, €1.50, or £1.50, depending on the currency withdrawn.
- The cost for transferring money from a Payoneer account to a local bank account in another currency is 2% above the current market rate. Aside from that, the bank or payment provider may deduct additional fees.
Paying Your Bills
- The cost for paying Payoneer customers for their services is determined on the manner of payment. Payment options such as ACH bank debit and local bank transfer, for example, have a 1% fee, whilst credit card payments have a 3 percent fee. The supplier might pay the fee or pass it along to the recipient. The fee is automatically levied to all EEA receivers.
Account Fee (Annual)
- If you have a Payoneer active account, you will never be charged a fee; but, if you have a Payoneer account that has been open for 12 months and has had no transactions, you will be charged a $29.95 annual fee.
Comparison with other services
How to Create a User Account
Follow the steps below to open or join up for a Payoneer account:
- On Payoneer’s website, click Register and fill out the form to identify your identity, such as freelancer, online seller, etc. Select “I’m looking for” from the drop-down menu, then click Register. Enter personal information such as name, email, and date of birth, as well as contact information such as address and phone number, after selecting your business type.
- Enter the same code in the verification code field after clicking on transmit code.
- Then, using your email address as the username, fill in the security details. Then, after entering the password, select a security question and respond to it.
- Continue by inputting the ID type, number, and expiration date, as well as the captcha code below.
- After that, input your bank account information, check the two boxes indicating that you agree to the terms and conditions as well as the price and fees, and click submit.
- Then, using the link supplied to your registered email, confirm your email.
- Log into your Payoneer account after the account application has been authorized, and you will be asked two more security questions as a precaution.
- Payoneer will then confirm your identity and conduct credit checks, which could take up to two days.
- You can request and send payments once your account has been approved.
- You can withdraw money from Payoneer to a local bank account in the same or a different currency. The former has a set fee, whereas the later has a fee that is 2% higher than the market rate. Payoneer does not offer the option of making a cash deposit.
How to use Payoneer to send money
You can send money to others using Payoneer by following these steps:
- Click Pay>Make a Payment after logging into your Payoneer account.
- Fill in the recipient’s email address.
- Then fill in the payment information, such as the Payoneer currency balance/card from which you want to make the payment, the payment amount, and the payment purpose.
- Review and edit any pertinent details you want to change by clicking Review.
- To confirm, check the box and then click Pay Now.
Let’s have a look at an example. Assume you’re in France with a EUR balance in your Payoneer account and want to send USD to someone in the United States. To make a transfer in this scenario, you must first convert your EUR currency to USD currency. A 0.50 percent fee will be charged, and the converted money will appear in your USD account within minutes. After that, you can send USD to the USA receiver from your Payoneer account’s USD balance.
In addition, if the person you’re sending money to has a Payoneer account for transferring money to their bank account, you’ll be charged a 2% conversion fee. If the person you’re sending money to doesn’t have a Payoneer account, you’ll have to pay a 2% conversion fee. After receiving the confirmation email, the transfer takes 2-5 business days to complete.
Where can I acquire a Payoneer card?
A Payoneer debit card is a physical or virtual card that may be linked to any of your currency balances on Payoneer. The card can be used anywhere Mastercard is accepted, including retailers, ATMs, and online.
A new client is only eligible for the Payoneer prepaid Mastercard if he has made at least $100 in payments in the previous six months, excluding in-network payments and e-wallet payments like Paypal or Skrill. As a result, a qualified customer can apply during the application process or after finishing the application procedure using his online account.
The annual fee for the Payoneer card is $24.95 USD. All payments not related with the card’s currency are charged a flat fee of 3.5 percent.
Customer Service at Payoneer
Payoneer provides email, live chat, and phone support Monday through Friday during normal business hours. Payoneer claims on their website that they strive to address difficulties within three business days, regardless of the form of communication you use.
Conclusion
Since its start, Payoneer has paved the road for worldwide payment services and has expanded across the globe. It provides free transfers between Payoneer accounts as well as the ability to create personalized invoices for clients. It also has a Store Manager feature that allows you to manage payments for many stores. You can compare and contrast its services and features with those offered by its competitors.
Pros
- It operates in about 200 countries and uses 150 different currencies.
- It allows you to send money between Payoneer accounts for free.
- It has the ability to create personalized invoices and accept payment requests from individual clients.
- Payoneer has a robust customer service system that includes email, live chat, and phone support.
Cons
- There are significant transaction costs when using a credit card.
- It is not a supported payment mechanism and so presents a barrier to e-commerce transactions.
- For overseas transactions, it charges a 2% currency conversion fee. It also has a yearly fee for Mastercard usage.
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Niamh Murphy, a writer who is always seeking new challenges and pushing the boundaries of what's possible with the written word. I believe that writing is not just about expressing oneself, but about taking risks and experimenting with different forms and styles. I strive to create work that is both innovative and thought-provoking, that pushes the limits of what's possible with the written word. I believe that writing has the power to change the world, and I am honored to be a part of that tradition.
