Papaya vs. Payoneer: A Complete Guide for US Businesses

For US entrepreneurs, expats and businesses expanding internationally, payroll and payments can be one of the most complex challenges. Traditional US payroll systems often fall short when companies start working with international employees or contractors. Platforms like Papaya Global and Payoneer simplify global workforce payments, but they do so in very different ways.

Papaya Global focuses on end-to-end payroll and compliance, while Payoneer's core product is designed for cost-efficient cross-border payments to contractors and vendors. If you are also interested in Payoneer's Global Workforce Management tool, then we'll discuss how this product compares to Papaya Global.

In this article, we'll help US businesses evaluate how Papaya Global and Payoneer can help their business operate internationally. We'll also discuss how Signing up to Wise Business allows access to BatchTransfer which you can use to pay multiple invoices in one go.

Papaya vs. Payoneer: What Each Platform Does

Dive into the core markets for each Papaya Global and Payoneer.

Papaya Global Explained

Papaya Global is a cloud-based payroll and workforce management platform. It helps US businesses expand internationally by handling payroll, benefits and compliance in more than 160 countries.¹ The company operates as an Employer of Record (EOR), which means it can legally employ workers on behalf of US businesses without requiring them to set up a local entity.

Papaya’s platform integrates with HR (Human Resources) and ERP (Enterprise Resource Planning) systems to provide a unified view of payroll, workforce costs and compliance data.² For US companies that want to establish a presence in new countries but avoid the legal and administrative burden of setting up subsidiaries, Papaya’s EOR model is particularly attractive.Payoneer Explained

Payoneer Explained

Payoneer's is well-knwon for its global payment solutions. Most notably, its global business account is one of the lead options for businesses looking to operate internationally. Until recently, Payoneer did not run payroll in the traditional sense but recently rolled out a global workforce management solution after acquiring Skuad in 2024.⁶

Payoneer's global business account supports mass payouts, which makes it especially popular among US companies in e-commerce and online services. Platforms like Amazon and Fiverr already integrate Payoneer, allowing American businesses and individuals to send or receive payments worldwide.

Global Workforce Management by Payoneer

Payoneer's global workforce management tool has 3 key aspects: 1. Contractor management 2. Agent of Record 3. Employer of Record. This tool will cover some of the core aspects of hiring, managing, and paying a global team.⁷ This feature is combined with Payoneer's ability to pay in 70+ currencies.

Papaya vs. Payoneer: Costs and Pricing

Pricing plays a major role in the Papaya vs. Payoneer decision, particularly for small and mid-sized US businesses managing tight budgets.

Account Setup and Maintenance

• Payoneer: Opening a Payoneer account does not cost anything. The only time an annual fee applies is if the account generates less than $2,000 in payments over a year, in which case a $29.95 charge is assessed.⁴
• Papaya Global: Papaya operates on a subscription model. Contractor payroll usually begins around $25 per individual each month, with higher fees for full payroll or Employer of Record (EOR) services.⁵ The prices aren’t listed on the website, but you can ask for a quote for your specific needs.

Receiving Payments and Payroll

• Payoneer: Transfers from one Payoneer account to another come at no cost. If US businesses collect client payments, charges vary by method: 1% for bank debit (ACH), up to 3.99% for cards or PayPal, and marketplace payouts like Amazon or Upwork are subject to each platform’s own rules.⁴
• Papaya Global: Rather than charging per payment, Papaya folds processing costs into its monthly pricing. That subscription covers payroll runs, tax calculations, mandatory contributions and benefits administration. Businesses pay a predictable per-worker rate, without separate transaction fees.

Papaya vs. Global Workforce Management: Pricing and Features

Both products offer quotes based on individual needs for the company. This model is typical of solutions for mid-to-large size businesses. While this lack of transparency is challenging, it could result in better prices than a singular, upfront price. In the end, asking for multiple demos and pursuing comparisons among companies could help you receive a better price for your team.

Papaya Features

Papaya is a leader in the global workforce space. When assessing their offering, you will find almost endless features and possibilities to suit your business needs. You will find various product groupings with the opportunity to receive quotes on each.

Payoneer Global Workforce Management (WFM) Features

The Global Workforce Management offering from Payoneer is narrower and a may be a good start for small businesses with limited international needs in the areas of onboarding, payroll, benefits, and compliance. These features are offered under a singular product without the bespoke options offered by Papaya Global.

Pay Employees With BatchTransfer

BatchTransfer has an easy-to-use instant payments system that allows you to make multiple payments, for both domestic and international, in one go. Small businesses and enterprises can get access to BatchTransfer with no additional cost after getting a Wise Business account.

BatchTransfer’s core strengths for payroll:

What sets BatchTransfer apart is its commitment to providing the mid-market rate for currency conversions. This means that businesses get a fair and transparent deal when making international payments.

Another perk of using BatchTransfer for international payroll is its extensive coverage of over countries and currencies! With features like automatic payment scheduling and API integration, small businesses can streamline their payroll process, freeing up valuable time and resources for other important tasks.

• How can businesses use BatchTransfer for payroll?: Businesses can send up to 1000 payments with a single click with BatchTransfer. US-based business can access BatchTransfer at no extra charge.

• Connect to your accounting software: You can easily manage and reconcile your mass payments through accounting software integrations such as QuickBooks or Xero.

Start making payments
with BatchTransfer >>

Card and Withdrawal Fees

• Payoneer: Payoneer offers a prepaid Mastercard for users who want direct access to their funds. The first card has a yearly fee of $29.95, with cash withdrawals at ATMs priced at $3.15 each. Purchases in the card’s set currency do not add extra charges, but spending in other currencies includes a conversion markup of 3.5%, plus a possible 1.8% cross-border usage fee.⁴
• Papaya Global: Papaya does not provide branded cards. Instead, wages and contractor payments are delivered straight to local bank accounts. Any banking or withdrawal costs are determined by the receiving institution, not by Papaya.

For US businesses, Papaya’s model is easier to forecast: a set cost per worker that already includes compliance, filings and benefits. Payoneer is lighter on upfront obligations and well-suited to companies paying independent contractors, but fees can stack up if many payments are made via credit card or in multiple currencies.

Papaya vs. Payoneer: Compliance and Legal Considerations

One of the biggest differences in the Papaya vs. Payoneer debate is compliance.

Papaya takes responsibility for ensuring your international hires are paid in accordance with local employment laws.⁵ For US companies hiring employees abroad, this is essential. Misclassifying an employee as a contractor or failing to meet local tax obligations can result in fines or legal issues. Papaya’s EOR services mitigate that risk.

Without accessing Payoneer's Global Workforce Management tool, Payoneer does not provide compliance support. It acts purely as a payment platform. US companies using Payoneer remain responsible for classifying contractors correctly and complying with tax regulations. While this works well for freelancers and vendors, it is risky for businesses hiring full-time international staff without proper payroll systems.

If your business uses Payoneer's Global Workforce Management tool, then they offer the ability to stay in compliance with local laws in 160+ ountries, as well as business protection measures with the assistance of Skuad.⁸

Final Thoughts

When weighing Papaya vs. Payoneer, it ultimately comes down to the nature of your international operations. Papaya is best suited to US businesses that need a reliable infrastructure for hiring employees abroad, complete with payroll compliance, benefits, and legal oversight. Payoneer, on the other hand, shines for companies that rely on contractors and vendors, offering quick, affordable cross-border payments and seamless marketplace integrations.

Each platform solves a different challenge, and choosing the right one depends on whether your priority is building a compliant global workforce or managing cost-effective international payouts.

FAQs

Is Papaya Global More Expensive Than Payoneer?

Yes. Papaya charges monthly per employee or contractor, while Payoneer only charges transaction fees. Papaya’s higher cost includes compliance and payroll management. It is unclear if Global Workforce Management by Payoneer is more or less expensive than Papaya Global due to specialized pricing models.

Which Platform Is Better for US Entrepreneurs With Freelancers Abroad?

Payoneer is typically better for freelancers due to lower costs, while Papaya is better for employees who need benefits and payroll compliance.

Does Papaya Global Work in the United States?

Yes, Papaya can process US payroll, but it is most valuable for managing payroll in foreign countries where compliance is complex.

Can Both Platforms Be Used Together?

Yes. Many US companies use Papaya for employee payroll and Payoneer for contractor payments. If using Payoneer's Global Workforce Management it will not be useful to use them both at the same time as there are many overlapping features.