Home Comparison TransferWise vs Payoneer

TransferWise vs Payoneer

The evolution of the internet has made it simpler and more cost-effective to send money across borders. However, senders are often bogged down by the fact that they have to sift through a number of money transfer companies to find the right one for their specific transfer needs.

In this comparison we’re comparing two money transfer giants, TransferWise vs Payoneer. This comparison will show you exactly what each provider offers to help you make an informed decision.

Compare Rates
United States
USD
Spain
EUR
USD

How Payoneer compares to TransferWise?

Like many others out there, you may be wondering which provider between Payoneer and TransferWise is best suited for your next transfer.

Payoneer is a New York-based financial services company that provides online funds transfer services, web-based cross-border B2B payment services, and working capital to its customers. Founded in 2005, Payoneer currently has 1200+ employees in its 14 global offices serving over 4 million customers.

The presence of Payoneer is 200+ countries and territories coupled with its support for businesses and online marketplaces, makes it a go-to company for online retailers and freelancers. That being said, Payoneer has a rather complex fee structure with lots of different charges instead of a harmonised billing system

TransferWise is a London-based global online money transfer service founded in 2011. Currently, the provider supports 750 currency routes through its team of 1900+ professionals. The provider has a customer base of 4 million and facilitates monthly transfers of about $4 billion.

The selling point for TransferWise is its mid-market exchange rate policy for all transfers. In addition, the company charges low transfers fees compared to many providers in the market. One area of improvement though for the company is its payout options. Currently, TransferWise allows for transfers to bank accounts only with no cash pickup option available. However, as of November 2019, TransferWise began partnerships with Asian-based mobile wallet providers.

Which Brand Has Lower Fees?

Payoneer charges various categories of fees depending on the type of transaction you are doing. According to the provider’s website, the following services are billable.

TransferWise

TransferWise fees vary depending on the payment method you choose and the transfer destination. For instance, sending $100 to India costs $2.94 in total fees.

Payoneer

Payoneer charges various categories of fees depending on the type of transaction you are doing. According to the provider’s website, the following services are billable.

  • Using Payoneer’s Billing Service to request payments from customers will cost between 1 and 3%.
  • Receiving money in USD costs 0-1%
  • Receiving money from online marketplaces such as Upwork, Fiverr, and Airbnb also attracts fees as set by the individual marketplaces
  • Withdrawing money to a bank account denominated in the same currency (USD, EUR & GBP) will cost you $1.50, €1.50, & £1.50 respectively.
  • Paying suppliers will cost you between 1 and 3% depending on the payment method you use.
Winner

Looking at the total costs per transaction from its origin to destination, TransferWise has a much more transparent, simplified and affordable fee structure than Payoneer.

If you’re looking for the lowest fees, use our simple guide to find the cheapest way to send money abroad.

Which Brand Offers Better Exchange Rates?

TransferWise

TransferWise doesn’t charge any margin on exchange rates. All the transfers through the platform are made at the mid-market rate.

Payoneer

Payoneer charges a margin of 2% off the midmarket rate. For instance, if the exchange rate from USD to ARS (Argentine Peso) is 1 to 59.74, Payoneer will give you a rate of 1 to 59.72

Winner

TransferWise is the absolute winner with a $0 exchange rate margin.

If you’re looking for more information on exchange rates, we’ve developed a simple guide to help you find the best exchange rates.

Which Brand Covers More Locations?

TransferWise

TransferWise disbursing network coverage currently stands at 59 countries. On its site, the provider has given its customers the opportunity to recommend destinations they would want to be added to further extend its global reach.

Payoneer

Currently, Payoneer supports 200+ countries and territories including areas as remote as the Mayotte archipelago, a region under France

Winner

Payoneer has a wider global reach for anyone wanting to send money abroad. TransferWise will have to invest more in opening up new markets.

Which is Faster?

TransferWise

TransferWise delivery times vary depending on the transfer destination. When sending $1000 to Brazil, it takes only 8 hours while to Kenya, it arrives the same day.

Payoneer

Most transfers from Payoneer to a bank account take 2-3 business days although the provider has given an allowance of 2-5 days. For example, a transfer from Payoneer to Kenya Commercial Bank (KCB) takes at most 24 hours. However, during holidays (local and international) transfers may be delayed by a day or two. Transfers from online marketplaces to Payoneer are instant.

Winner

In as much as Payoneer has impressive delivery times on some routes, compared head to head, TransferWise wins thanks to its Peer to Peer (P2P) transfer model.

If you’re looking for the fastest provider, use our simple guide to find the fastest way to send money internationally.

Which Brand Offers More Transfer & Payment Options?

The choice of transfer payment and payout options is a significant decision that can easily tilt the scales in favour of one provider.

TransferWise

On TransferWise, customers can pay for their transfers using credit or debit cards, online bank transfers, and direct bank debits (ACH). As for the payout options, TransferWise has predominantly used bank transfers. However, recent developments have seen the provider venturing into mobile digital wallets in Bangladesh, Ghana, and the Philippines with prospects in China not far off the horizon. Using the TransferWise debit Mastercard you can shop, make free ATM withdrawals of up to £200 per month and convert funds from one currency to another.

Payoneer

Payoneer is not a conventional money transfer service. However, you can use its platform to withdraw money to your bank account and pay directly to a supplier’s bank account. The other option is for you to load money into your Mastercard branded Payoneer prepaid card for withdrawal at local ATMs or for shopping online and at physical stores. When paying for your transfer, you can use a credit card, eCheck or local bank transfer.

Winner

TransferWise edges out Payoneer marginally in both transfer payout and payment options hence emerging the winner in this category.

What Users Have to Say About Each Brand?

Users online either on social media or on review sites such as Trustpilot, have shared their personal experiences. Below are some of their sentiments.

TransferWise

TransferWise has 79,500 Trustpilot reviews out of which 94% are categorized as either ‘Excellent’ or ‘Good’. Some of the positive customer experiences highlighted the following areas.

  • Faster Transfers
  • Easy to use platform
  • Affordable transfer service
  • Excellent rates
  • Highly secured platform with a 2-step verification system

Customers who weren’t satisfied with the provider left reviews citing the following areas of concern.

  • Accounts being closed without sufficient explanations
  • The TransferWise app doesn’t allow sending money from countries such as the Philippines.
  • Transfers on non-traditional routes take longer to be delivered
Payoneer

Payoneer has 13,959 reviews on Trustpilot 80% of which are rated as ‘Excellent’ and 10% as ‘Great’. The positive comments centred on the following areas.

  • Responsive 24/7 customer service
  • Easy to navigate platform
  • Faster transfers

The 6% of customers who rated the company’s service as ‘Poor’ or ‘Bad’ had the following to say

  • Account blocking without notice or sufficient explanations
  • In most countries, card shipments are made to a physical address and not postal addresses. Others are delivered to old addresses causing card losses.
Winner

TransferWise wins not just by the sheer number of Trustpilot reviews but also by the quality of the reviews.

What Brand Offers Better Ease of Use, Accessibility & Security

TransferWise

TransferWise has a solid customer support platform accessible through live chat, email and phone. The website supports up to 12 languages which currently are English, Spanish, German, Portuguese, Romanian, Japanese, Polish, Russian, Italian, Hungarian, French, and Turkish.

The provider also has an app that makes transfers on the go convenient. You can also check exchange rates and view historical transactions right from the mobile app. To secure customer transfers, TransferWise has 2-factor authentication system in place that sends a code to verify transactions before proceeding.

Payoneer

Payoneer has 320 customer service representatives who are offering support to its clients in 70 languages through live chat, email and telephone. Transfers on Payoneer can be done in 150+ currencies from different parts of the world. In addition to English, the website can be translated into 8 other languages

Payoneer is available through an app which allows you to manage currencies, request payments, withdraw and make payments to bank accounts and Payoneer accounts. The provider is soon introducing 3D Secure to its prepaid cards to ensure that only authorised users can transact on the platform. This security improvement feature is a welcome measure against cyber crime.

Winner

Payoneer’s support platform is much more dynamic with more languages to accommodate lots of users.

Additional Features

Apart from money transfer services, both Payoneer and TransferWise have added features that enhance customer experience and utility.

TransferWise

TransferWise has the following:

  • Borderless Account- This account support 50+ currencies and gives you bank accounts in GBP, EUR, ESD and AUD that allow you to receive money like a local in those countries.
  • Mastercard branded debit card- This prepaid card is easy to use for shopping both online and offline. You can also use it to withdraw money directly from an ATM.
Payoneer

Payoneer also has a number of features designed for different categories of customers

  • Local Currency Accounts -You can signup for local currency accounts in Canada, Europe, UK, Mexico, Australia, and Japan which allow you to get paid like a local.
  • Clients Billing-You can send your clients an invoice from the Payoneer platform and have them pay you directly into your Payoneer account.
  • Marketplaces and Networks-You can receive payment from online marketplaces such as Upwork, Airbnb, iStock and others into your Payoneer account.
  • Pay Your VAT- From Payoneer, you can pay your UK and EU VAT hassle-free.
  • Mass Payout Service -Payoneer allows companies, corporations and marketplaces to make payments to suppliers, contractors, employees and other beneficiaries en masse directly from their Payoneer accounts.
Winner

Payoneer has more features targeting businesses and individual users compared to TransferWise.

Case Studies

The following scenarios give you a feel of how the different parameters play out when transacting on both Payoneer and TransferWise in USD to Singapore

PayoneerTransferWise
Amount$200$1,000$5,000$200$1,000
$5,000
Transfer fee$0.00*$0.00*$0.00*$4.73$9.41$41.61
Exchange rate1.32951.32951.32951.34951.34951.3495
Transfer speed1-5 days1 hour – 3 days
Total received$265.90$1,329.50$6,647.50$263.55$1,336.90$6,691.35

Bottom Line – Who Is Better?

  • Domestic Payments – TransferWise supports domestic payments in EUR and USD. Payoneer also supports domestic payments but the minimum it can transfer is $50.
  • Overseas Payments – TransferWise offers competitive pricing on its international payments. Payoneer allows for payment to overseas individuals but it is more inclined to businesses.
TransferWise
  • Smaller Transactions -TransferWise is much more suited for smaller payments. Payoneer has a $50 threshold below which you cannot transfer.
  • Large Transactions -TransferWise is best for large transactions of up to USD 1 million, GBP 1 million and EUR 1.2 million in addition to other currencies. Payoneer has a card spending limit of $5000 and a Payoneer to bank transfer limit of $10,000.
Payoneer
  • Business Payments – Payoneer has more features for business payments compared to TransferWise.
  • Disbursing Network Coverage -. Payoneer serves 200+countries and territories compared to TransferWise which has listed 59 supported countries on its official page.
Winner

Payoneer has redefined itself as a payment gateway for businesses and individuals mostly freelancers.  On the other hand, TransferWise has positioned itself as a peer to peer payment solution serving both individuals and businesses looking to receive and make payments. Overall, TransferWise enjoys more preference and popularity than Payoneer.

Related Content

InstaReM vs TransferWise
How InstaReM compares to TransferWise? InstaReM and TransferWise are some of the top cross border money transfer providers in the industry. Both offer their customers exchange rates with zero margins meaning your transfer is processed at the mid-market rate. In this brand by brand review, we look at all the factors including transfer speeds, fees, […]
Payoneer
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 […]
TransferWise
TransferWise exchange rates and fees TransferWise is a brand synonymous with transparency. They have a transfer widget that shows you how much you will pay for your transfer. Transfer Fees  The transfers are categorised into three, each attracting different fees. Fast transfers charge the highest fees. You pay for your transfer using a debit or […]