Payoneer vs PayPal: Which is better for transfers in the Philippines?

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If you’re a business owner, online seller or freelancer in the Philippines you need smart and easy ways to get paid by clients. So - what about Payoneer¹ vs PayPal² for freelancers and anyone else getting paid by clients at home and abroad?

This full Payoneer vs PayPal review covers all you need to know. We’ll also introduce Wise which is a strong option for freelancers who need to receive payments from others in foreign currencies, with low fees and the mid-market exchange rate³.

What is Payoneer?

Payoneer provides business and freelancers globally with multi-currency accounts, ways to get paid by clients and marketplaces, and linked debit cards you can use to spend and withdraw your business funds. Payoneer has a really broad global reach, with services available in 190+ countries, and 70+ currencies.

Payoneer Services in Philippines

Payoneer Philippines offers business and freelance customers global currency accounts to send, hold and receive payments in a selection of currencies. You can create and send invoices or payment requests, hold and convert currencies, withdraw funds to a different bank and even access financing and loans. Some customers are able to get a Payoneer card which you can use to spend and withdraw funds held in your Payoneer account.

What is PayPal?

PayPal is a giant of ecommerce and has hundreds of millions of customers around the world. PayPal’s services offer easy ways to accept payments, such as buttons you can add to an ecommerce site, invoicing solutions, payment links and ways to send a payment request. You can also use your account to send money to others and get tools to manage business risk, and streamline operations.

It’s worth noting that PayPal offers services to both personal and business customers in the Philippines. In this guide we've focused on the business services available - you can learn more about PayPal for personal customers over on the PayPal website or app.

PayPal Services in Philippines

PayPal merchant services have a focus on ways to receive payments online, including plug-ins and pre-prepared code you can add to a website, payment links for requesting money from others, and invoices. You can receive payments by card or other options like e cheque. There are also plenty of ways to make payments to others when you need to.

Payoneer vs PayPal in Philippines: an Overview

Both Payoneer and PayPal have overlapping services around receiving payments - but Payoneer vs PayPal fees, features and products aren’t exactly the same. It’s also important to remember that in this guide we've used PayPal merchant fees and features, rather than their personal account information - if you’re considering using PayPal make sure you pick the right account type for your needs.

We’ll move into more detail throughout this guide - first a quick overview of where PayPal vs Payoneer are similar, and some places they’re different:

• PayPal merchant accounts have no ongoing fees - Payoneer charges an annual fee if you don’t use your account frequently
• Payoneer accounts can manage 70+ currencies, PayPal supports 25+ currencies for holding and exchange
• PayPal and Payoneer both charge for receiving card payments from customers
• Payoneer offers some account holders the option of a linked card, PayPal doesn’t have this solution in the Philippines
• PayPal currency conversion costs 3% to 4% - Payoneer has a 0.5% - 3% fee for currency conversion depending on transaction type
• PayPal and Payoneer can both have fees for withdrawing your balance to another account - whether or not you pay a fee, and how high it is depends on the details of the withdrawal

We’ll learn more about the Payoneer vs PayPal exchange rate, costs and ease of use, next.

Payoneer vs PayPal in Philippines: Main Comparison

There’s no clear winner when it comes to PayPal vs Payoneer. Which is best for you will depend on the services you need and your personal preferences. Let’s look at a head to head comparison on some important features.

Payoneer vs PayPal in Philippines: Fees and Charges

Let’s get a reminder of Payoneer vs PayPal charges for some key services, other costs may apply depending on how you use your account.

Payoneer vs PayPal in Philippines: Conversion Rates

If you transact internationally, exchange rates matter. So, what of the PayPal vs Payoneer conversion rate?

Both providers use a currency exchange markup, which can be variable depending on the transaction type. An exchange rate markup is a fee added onto the exchange rate used to convert one currency to another. It’s not always that easy to spot, which can make it harder to figure out exactly what a foreign transaction is costing you.

If you’re converting funds from one currency to another within a Payoneer account, a fee of 0.5% is added to the Payoneer exchange rate. When you withdraw funds and need conversion, the fee could be up to 3%. PayPal has currency conversion fees of 3% to 4% depending on the transaction type.

Not all providers use markups - some, like Wise use the mid-market exchange rate and split out the conversion costs to make sure it’s as easy as possible to see what you’re paying when you transact across borders. More on that next.

Meet Wise: Send and receive foreign currency at the mid-market rate in the Philippines

The Wise account is an easy way to hold and exchange 40+ currencies, including PHP, USD, CNY, and more. All you need to do is create a free account to get started.

With Wise, you can exchange currencies at the mid-market rate each time, with low, transparent conversion fees from 0.57% and absolutely no markups. Plus, you can order a Wise card for convenient spending at the same great rate, without any foreign transaction fees. At times you need cash, you can also make up to 2 free ATM withdrawals to the value of 12,000 PHP when you're overseas. You'll even get 8+ local account details to get paid conveniently to your Wise account in PHP and a selection of other major global currencies.

Sending money or making payments abroad? Wise also offers fast, low cost transfers to 140+ countries - you can track your transfer in your account and your recipient will also be notified when a transfer reaches them.

✍️ Sign up for a free account now

Conclusion: Should you choose Payoneer or PayPal in Philippines?

Payoneer and PayPal are both great global providers for businesses, freelancers and ecommerce sellers who want global currency account options to receive and send payments. Both let you receive card payments at home and abroad, and are safe and easy to use. Which is right for you will ultimately just depend on your specific needs. Compare Paypal vs Payoneer against other options like Wise - particularly looking at the fees and exchange rates for managing your money across borders, to pick the right one for you.