Here is a detailed articled on Payoneer Vs Transferwise
Are you in search of a payment platform that will allow you pay across countries? OR are you a trader that is limited to trading locally because you find it difficult to complete business transactions outside your country? Here is a solution to your limitations.
This article will be providing review and comparisons on two strong international payment platforms to enhance your decisions and to give a better insight about international payments. This guide will consider two payment platforms which are Payoneer Vs Transferwise.
Let’s begin with Transferwise
What is Transferwise?
TransferWise is a company created by two Estonian businessmen in the year 2010 and based in London as a financial technology (FinTech) company that is now shortened to “Wise”. The company is popularly known for providing a cheap method of sending money from United States to about 80 countries with very good exchange rates.
Transferring money through TransferWise can be done in several ways; either through credit card or bank account but most importantly, the receiver has to own a bank account.
The company’s dealings are straightforward and made simplified by providing a calculator for calculating fees and rates before transacting on its platforms. It is good to know that when you setup a transfer, you will see the rate and you can also terminate transfers that are yet to be paid.
The company mobile App is available for both Android and iOS devices and it is rated high by the users. Setting up a new Wise account is very simple which is compulsory for you to start sending money to other countries, you can set up a TransferWise account through the following the below steps:
- Go to TransferWise’s website here to sign up
- Signing up an account will require your e-mail with a strong and secured password
- When signing up, you can also make use of your Facebook or Google account as alternative
- A mail will be sent to your e-mail for verification after signing up
- You must obey the instructions given in the mail sent and after that you can start making transfers
After setting up an account, you may be asked to your submit identity documents during your first transfer to make sure that you are not an imposter and their clients funds are safe. Although, it may be embarrassing but it is part of due process. You might also be asked to provide your identity documents and proof of residence depending on the amount you are transferring and where you are sending the money to.
The acceptable documents for identification are:
- State ID
- Driver’s license with photo
- Passport with photo
- Residence Permit
- U.S military ID
Also documents for residence are:
- State ID
- Driver’s license
- Bank statement
- Electricity bills
To send money through TransferWise is easy and this is how it goes
- Setup an account for yourself
- Setup your transfer
- Provide soft copies of your ID for verification
- Provide the bank details of the recipient
- Cross check the summary provided and click on “confirm”
- And lastly, pay for the transfer and track your transfer
The company platform has provided a list of ways to transfer money across countries and these ways are:
- Using your debit card that is integrated with your bank account
- Using a credit card
- Using bank transfer to a TransferWise account
Although the company has provided a list of ways to transfer payment across countries, it also has sending limits which are large enough so that their clients will not be bothered about them. TransferWise allows its clients to send up to a million dollars for transfer depending on the method of payment being used. For instance, paying with cards has lower limits.
So now, let’s move on to Payoneer.
What is Payoneer about?
One of the international payment platform that links businesses with clients for online payment is Payoneer and these businesses can request payments from their clients directly (for those that can pay online either with credit card or bank account).
The money will be transferred to your business Payoneer account and then you can decide whether to deposit the money in your bank account or disburse the money through Payoneer’s debit card.
An advantage of Payoneer is that it can control payments internationally and also currency exchanges; thereby, permitting its users to send and receive payments in about 200 currencies globally using bank transfer.
Some of the countries where you can accept from through a local bank transfer on Payoneer include Mexico, Canada, Japan, Singapore, China, United states, Australia, United Kingdom which lowers the cross-border fee to be paid.
The service is good for B2B payment and those that own e-commerce marketplaces as the company does not charge any amount for bank transfers when both the sender and recipient use their Payoneer accounts.
This is a great advantage when compared to the charges particulate to credit card payments done through “point-of-sale” systems. For more details about Payoneer, read our Payoneer review.
Payoneer also provides a list of features to make your payment easy and faster on their platforms that can be accessed once you are done creating your Payoneer account. The features are listed below:
- Prepaid debit card
- Tax administration
- Merchant cash advance
- Make payment
- Invoices
- Send and Receive money across countries
- Mobile App
- Developer tools
To own a payoneer account is easy and can be done in simple steps listed below:
- Visit the Payoneer’s official website here and click on “Sign up” then you will be asked whether the account is for business or personal use
- To sign up, provide all the required details like name, e-mail, DOB, phone number and address
- Use the e-mail address as your Payoneer username, generate a password and select a security question and answer
- Enter your account details
- You will authenticate your account by clicking on the link sent to your e-mail. For additional security, you will be asked to choose two more security questions
- The platform will now verify your identity and run credit check and these may take up to 48hrs
- Lastly, when your account has been verified, you can start making payment request and sending payments.
Payoneer Vs Transferwise
Pros of TransferWise
- It is easy to use
- It has no setup fee
- It charges low fee
- It is highly secured
Cons of TransferWise
- The sign up process is slow
- It supports limited countries and currencies
- Account can be deactivated if additional documents and ID are not provided
Pros of Payoneer
- It supports many countries
- It has inbuilt invoice
- Good customer care services
- It is free when payments are made between Payoneer’s account holders
Cons of Payoneer
- Card payment fee is high
- Insufficient payment features
- Account can be terminated or frozen
Verdict
With the above review on Payoneer Vs Transferwise, the two companies are wonderful in most of the aspects considered such as in terms of features, price, services rendered and so on.
The two companies are highly rated by their users confirming that they are satisfied with the services they offered but no matter how good the two companies may appear, they are still some lapses they should work on.
Looking at it from the number of countries supported, TransferWise is really lagging behind supporting just 60 countries but Payoneer is supporting 200 countries which give more people access to the platform and for this reason, it can be said that Payoneer is the better option for business use.
On the contrary, TransferWise might be more advantageous for local payments.
In summary, Payoneer is adequate for B2B transactions while TransferWise is better for P2P transactions.
Idris Yau is an entrepreneur and a seasoned finance and marketing content writer. He brings you unbiased reviews about products and answers to your finance questions.