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In fact, there are still some significant differences that should be considered. For that, we will take two money transfer giants, Wise (previously Transferwise) and Payoneer, as a prominent example. In this post, we will analyze the two solutions, including Wise vs Payoneer fees and other important features. So keep reading to get an idea of what payment option to choose for recurring business payments to your employees or partners. No matter how often you are going to use a digital payment solution, this post will help you choose the best option.
Payoneer
Payoneer is a New York-based financial services company that offers online cash transfer and e-wallet services to all account holders. The company was founded in 2005; it has over 2,000 workers spread across 21 worldwide locations and serves a client base of over 4 million people. The largest selling point of Payoneer transfers is the global network of more than 200 countries, as well as its commitment to providing 24-hour customer service.
Payoneer's global footprint, along with its support for enterprises and online marketplaces, makes it a popular choice among e-commerce companies and freelancers. Having said that, Payoneer's price structure is somewhat complicated, with several charges rather than a standardized billing solution.
Wise
Wise is a London-based worldwide internet money transfer business created in 2011 and headquartered on Shoreditch High Street in London. Currently, the company serves over 11 million customers with a staff of 3,000 specialists operating in 21 locations throughout 19 countries.
Being one of the industry's top money transfer firms, Wise is known for its completely open approach to exchange rates and transfer costs, as well as its diverse payment alternatives and ability to match the mid-market rate. In addition to these revolutionary features, the company offers lower transfer rates than many other providers on the market.
Which Provider Offers Lower Fees?
Wise transfer costs are often cheaper than those charged by Payoneer. So this is an option to follow if you do not want to overspend your company budget on sky-high commissions. Another good news is that both international money transfer providers do not charge a fee for balance transfers. This is a huge benefit for those who want to save money while moving funds domestically to other accounts.
Wise takes a straightforward approach to transfer costs and keeps clients informed throughout the transaction procedure. It does not charge a markup for currency transactions; rather, it aims to match the mid-market rate as precisely as possible. As a result, the company depends on fees to generate a profit; nonetheless, the commissions are low and competitive. They are established depending on the amount of money transferred and are often less than 1% of that total amount.
Payoneer's cost structure varies depending on the transaction type. The provider's website lists the following services as billable:
- Using Payoneer's Billing Service to seek payments from other users will cost in the range of 1 and 3%.
- Getting money in USD incurs a 1% charge.
- Receiving money from online markets like Upwork, Fiverr, and Airbnb incurs costs determined by the individual marketplaces.
- Withdrawing money to a bank account denominated in the same currency (USD, EUR, and GBP) costs $1.50, €1.50, and £1.50, respectively.
- Paying suppliers will cost between 1 and 3% depending on the selected payment method.
- Balance transfers to other holders of Payoneer accounts are completely free.
- ACH bank debit and local bank transfers carry a fee of 1%.
- Credit card payments will cost around 3%.
Both Wise and Payoneer have hidden fees that users should be aware of:
Wise
- Monthly account fees – Wise Business accounts have a monthly fee, which might not be suitable for low-volume users.
- Weekend and off-peak exchange rates — Exchange at Wise rates may be slightly less profitable on weekends and off-peak hours.
Payoneer
- Inactivity fees — Payoneer may charge a fee for inactive accounts.
- Minimum withdrawal amounts — There may be min cash-out amounts for transferring money out of your Payoneer account
Overall, Wise is generally considered the better option for those seeking lower fees and more competitive pricing for international money transfers. However, Payoneer may be more suitable for businesses that require specific features and can afford the higher fees.
So What to Choose?
The primary difference between Wise and Payoneer money transfers is that Payoneer has a network of over 200 countries, but Wise provides the lowest transfer costs, a variety of payment alternatives, and matches the mid-market rate. There is no win-win solution for all businesses. So pick a payment system that meets your needs and expectations.
