Payoneer Review: Exchange Rates, Transfer Fees & Alternatives

From paying contractors and vendors to receiving payments from customers or converting currencies, Payoneer is a go-to solution for businesses. Freelancers can receive payments directly into their Payoneer accounts from online marketplaces and networks, with the added benefit of low transfer fees, payments in minutes and pay-out flexibility.

Globally, Payoneer serves 200+ countries in over 150 currencies, more than many other money transfer companies. In this review we will identify pros and cons of the service, presented as a clear and concise guide for potential customers.

Payoneer Exchange Rates and Fees

Payoneer charges its customers fees when getting paid by the different businesses to their Payoneer accounts. Thereafter, withdrawal from local ATMs also come at a fee. Below is a synopsis of the fees, exchange rates and other costs you may incur when using Payoneer.

Transfer Fees

Payoneer's fee structure comprises several components depending on the type of transaction you are doing. The fees are categorised as follows:

Getting Paid

• It is free when you get paid by other Payoneer customers in USD, EUR, GBP, and JPY.

• The other way of getting paid is through Payoneer's receiving accounts. Normally. Payoneer gives you the privilege of owning local bank accounts denominated in EUR, GBP, JPY, AUD, CAD and MXN. If someone pays you through a receiving account in these currencies, you don't get charged any fees. However, if they pay you through your receiving account is USD, you'll be charged 0-1% in fees.

• Payoneer has a billing service you can use to request payment directly from your customers. This service comes at a 3% fee if payment is done by credit card and 1% if it is settled by eCheck.

• Fees for receiving money from marketplaces and networks such as Upwork, Airbnb, and CJ Affiliate vary from one platform to another. You need to independently confirm what they charge. Upwork charges a loading fee of $2 per withdrawal to Payoneer.

Withdrawing Funds to a Bank Account

• Most withdrawals to a local bank account do not attract any fees. For instance, withdrawals from Payoneer to KCB Bank or Equity Bank in Kenya are free.

• If you withdraw to a bank account denominated in USD, EUR, or GBP, you'll pay $1.50, 1.50 euros, or 1.50 pound sterlings respectively. However, for this to apply, the bank account must be located in the same country where these currencies are classified as local currencies.

ATM Transactions

If you withdraw from an ATM using the Payoneer Mastercard. You will be charged $3 per transaction. If you cancel a transaction, you'll be charged $1.

Exchange Rates

The exchange rate Payoneer charges for Payoneer to bank withdrawals is 2% above the mid-market rate. Normally, the provider doesn't show the mid-market rate and the 2% breakdown on the transfer but the rate they give you includes the 2% margin.

Other Fees

Depending on the bank and country from which you access your money, you may be charged landing fees, processing fees or even intermediary fees. Also, Payoneer doesn't make it clear how much you are charged when you query an account balance through the ATM.

Compared to banks, Payoneer gives much better rates and the time taken to withdraw to a bank is also shorter. It takes one business day maximum for funds to be credited to your account.

If you're just getting started with online money transfers, we've prepared a few simple guides to help you find the cheapest ways to send money abroad and the fastest money transfer provider.

It takes one business day to send money from your Payoneer account to the bank. Occasional delays may occur when the transfer involves correspondent banks. All the remittance corridors are supported by a strong and knowledgeable team of 1,200 employees.

Top countries for using Payoneer

Payoneer allows freelancers and contractors to receive local bank transfers from international companies located in the United States, Europe, the UK, Japan, Canada, Mexico and Australia; directly into their Payoneer account. This money can then be transferred to bank accounts in over 200 supported countries.

Payoneer re-entered the Indian market in 2016, after forming a partnership with IndusInd Bank. Payoneer was the first digital payment platform in India to provide customers with a Foreign Inward Remittance Certificate.

Payoneer was founded in the United States in 2005 and has its headquarters in New York. The company is a big player in the American market due in part to its partnerships with Amazon, Walmart and Wish.

Payoneer opened its UK office in 2017 as they believed that they would need a British base following the announcement of Brexit.

Pros and cons of using Payoneer

Payoneer processes all payments online and has no physical locations or agents. It has clear advantages over other money transfer providers in a number of ways.

If you're considering other providers, we've looked at how Payoneer compares to Wise, formerly TransferWise in our Wise vs Payoneer article to help you make better decisions.

Types of Transfers Offered by Payoneer

Payoneer allows for bank transfers and ATM withdrawals through the Payoneer Mastercard. For you to withdraw to your local bank, you have to first add the bank as the payment method. Payoneer normally indicates that it takes up to 3 business days to review the added payment method but typically approvals take about 30 minutes.

For the ATM withdrawal, you must have the Payoneer Mastercard. You can still use the account without the card. Ordering the card is free and it may take about 3 weeks to be delivered.

Payoneer Transfer Times Explained

Payments to your Payoneer account from online marketplaces such Upwork are instant. When a client pays you through Payoneer, the payment may be placed under review for up to 5 days. However, in most cases, the review takes a few hours and the payment checks into your Payoneer account.

The client may be asked by Payoneer to provide additional information for the payment to be processed. If he doesn't act on his part, the payment may delay getting to you. You can also query a payment through the support centre or by contacting your client directly.

Payment Methods Offered by Payoneer

When sending money with Payoneer, you can use the following payment methods to pay for your transfer:

• Credit card

• Debit card

• eCheck

• Local bank transfer

Top Reasons to Use Payoneer

Payoneer is one of the preferred payment and money transfer provider for businesses and freelance professionals.

Businesses

• Receive payment in a local currency account such as USD, GBP and EUR

• Pay your VAT

• Pay suppliers

• Pay your contractors or freelancers

Personal

• Move your earnings to your home country through local bank withdrawals

• Receive payment from online market places and networks

• Shop on online market places

Payoneer's Capital Advance can help you manage your working capital when selling on Wallmart and Amazon. The loan is advanced to you based on your store sales record. Repayment is gradual until the loan is fully settled. However, if you think Payoneer is not something for you, we've made a guide to help you find the best way to send money internationally.

Can I Trust Payoneer?

Payoneer was founded in 2005 in New York City. The founders, Yuval Tal and Ben Yaniv Chechik, injected $2 million of seed funding. To date, the company has raised over $265 million from a spectrum of investors. Some of the notable financiers include Greylock Partners, Wellington Management, 83North, Crossbar Capital, Technology Crossover Ventures, Viola Ventures, Susquehanna Growth Equity and Carmel Ventures.

The company has grown rapidly employing over 1,200 employees spread across its 17 regional offices in the United States, United Kingdom, Latin America and Asia. Recent valuations put the company at $1 billion.

In terms of authorization and regulation, Payoneer has licences covering the following jurisdictions.

Payoneer Inc. – This company is registered by the US's Financial Crimes Enforcement Network (FinCEN) as a Money Services Business (MSB). Its licence as a Money Transmitter allows it to operate in 49 US states.

Payoneer (EU) Limited – This company was formed in Gibraltar in 2011 and it is 100% owned by Payoneer Inc. The Financial Services Commission in the country licenced the company giving it the legal space to passport throughout the EEA.

Payoneer Hong Kong Limited – This company is 100% owned by Payoneer Inc. and licensed by the Hong Kong Customs and Excise Department to do business as a Money Service Operator (MSO).

Payoneer Japan Limited – Owned 100% by Payoneer Inc., this company was formed in 2014 and registered with Kanto Finance Bureau as a Funds Transfer Service Provider.

Payoneer Canada Limited – This company is registered with the Financial Transactions and Reports Analysis Center of Canada (FinTRAC). It operates as a Registered Money Service Business.

Payoneer Australia Pty Limited – This company is 100% owned by Payoneer Hong Kong Limited and is licenced by the Australian Securities & Investment Commission (ASIC).

The regulations and licencing ensure that the company safeguards clients funds and information. In 2010, Payoneer attained PCI Level 1 Compliance, an important set of standards for online safety for its more than 4 million customers.

User Opinion About Payoneer

On Trustpilot, Payoneer has received excellent ratings. It has a total of 42,332 reviews, where 86% of those fall within the ‘Excellent’ and ‘Great’ rating bands.

The customers who were pleased with Payoneer gave the following reasons

• Excellent customer service

• Faster funds transfers

• High exchange rates

Customers who rated the company as 'Poor' or 'Bad' had the following to say.

• Account blocking if verification is not complete

• Occasional delays in transfers from clients and to bank accounts

How to Get Started With Payoneer to Send and Receive Money

Payoneer is considered one of the easiest platforms for sending money to freelancers and contractors. However, money transfers can sometimes be needlessly complex, so we have provided a simple and easy to use step-by-step guide for getting started with Payoneer.

Sending Money Through the Payoneer Website

It is very simple to get started on Payoneer and it should take around half an hour in total, with 20 minutes dedicated to the identity verification.

Sending Money Through the Payoneer App

The complete process for sending money using the Payoneer app is simple. You’ll notice that steps are similar to most other payment apps out there.It should take around 3 minutes in total depending on whether you are sending to another Payoneer user or need to add bank details.

Receiving Money From Payoneer

Many freelancers and contractors use Payoneer due to the ease of invoicing and requesting payment from clients and businesses, and it really couldn’t be more straightforward. Typically, a payment made from Payoneer account to Payoneer account can take up to two hours to clear, whilst payments made via local bank transfer will take between one to five business days to process.

Receiving Money From US, EU, UK and Japanese Companies

Whether you’re looking to receive money from one of Payoneer’s affiliate partners, such as Airbnb, iStockPhoto or Fiverr; or you’re looking to bill a company for some freelance work, the whole process couldn’t be more straightforward.

Billing Your Clients Through Payoneer

Sometimes it may be necessary to bill your clients for work carried out and again the process couldn’t be more straightforward.

Does Payoneer Have a Mobile App?

Payoneer has a mobile app available as a free download on both Google Play and Apple Store.

What is the Payoneer App?

Payoneer launched in 2005 and has grown in reputation to be one of the go-to payment processors for customers and businesses alike. They provide a MasterCard debit card and businesses such as Google, Airbnb and Fiverr use their services. They made over $300 million in revenue in 2019 and have over 1,400 employees.

The Payoneer app allows businesses to track their activity and customers to view transactions. As you’ll learn in this review, the app is highly rated and adds value to the overall financial company.Through the application, you can do the following:

• Sign up for a Payoneer account

• View the balances of all currency accounts on the app from USD to GBP to EUR to any other that you may have.

• View all transactions both receipts and withdrawals

• Make a payment

• Withdraw your funds

• Request a payment

• Manage currencies

You can also refer a friend through the app, contact customer support and read through the frequently asked questions. On Google Play, the app has 53,000 reviews with an overall 3.8/5 rating. The app has no country or regional restrictions.

How Do I Get the Payoneer App?

Downloading the Payoneer app is simple. Navigate to the Apple or Google Play app marketplaces depending on what operating system you’re using. Run a search for the Payoneer app and install – it should take more than a few minutes to complete the installation process.

How Does the Payoneer App Perform?

We have taken the time to give the Payoneer app a test run. Does it work as expected? Read on to learn about the Payoneer app performance and what issues you can expect to face.

User Interface: the user interface has a mixture of white and orange colors, which look visually simple to understand. The menu systems are intuitive, so you won’t take long to figure out how everything works. The big blue buttons are easy to press and the navigational menu at the bottom is handy for moving around the different app features.

Speed and Bugs: the app speed is fast because of its minimalist nature. Since there are no heavy graphics the loading speeds are fast. The app has a higher rating on the Apple app marketplace, which indicates it’s more optimized. Furthermore, no bugs were found during testing, but if you encounter any, expect them to be patched out soon.

How Long Does It Take to Send Through the Payoneer App?

From start to finish you can send money on the Payoneer app in 1-3 minutes. It depends if you are sending to another Payoneer user or need to enter bank details. However, allow for extra time during your first transfer since you’ll need to learn the app first.

The transfer time for payments to other Payoneer users is typically within 1 hour. However, when sending to a bank expect to wait 2-4 business days.

Can You Add Money Directly to the Payoneer App?

Yes, Payoneer allows you to hold funds on your account. Also, you’ll need to load the funds onto your Payoneer debit card if you have one. This process can be automated, so the funds are automatically available once they hit your Payoneer account.

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