Payoneer vs. Square: A Quick Guide for US Businesses

American businesses and independent sellers have more payment choices than ever. Payoneer is designed for cross-border transactions, which can help freelancers, e-commerce sellers and global companies that want to conduct transactions in multiple currencies.

Square shines in local point-of-sale environments and combines payment processing hardware with software for in-person and online sales.

So, which of the two is better for you? A Payoneer vs. Square comparison can help you decide. We'll also discuss the Wise Business account. The global account that can help your company with all things cross-border.

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What are Square and Payoneer Known For?

Square has been a payment processing leader in the US since 2009. More specifically, they are a market leader in processing in-store payments. Since their founding, they've expanded with cards, dedicated business accounts, lines of credit and more.

Payoneer emerged as a solution to international business operations in the mid-2000s. They focus on global SMBs with their high-value customers coming from cross-border transfers. Accompanying their focus, they offer a suite products dedicated to international business, including workforce management, payment processsing, and a business account for managing international finances. The business account is their core product where users can send, hold, and receive funds globally.

Payoneer vs. Square: Supported Accounts

Payoneer suits U.S. businesses that work across borders as it offers local receiving accounts in multiple major currencies, so you can get paid as if you had a bank account in that country.

Account details in USD, EUR, GBP, JPY, CAD, AUD, SGD, HKD and AED, along with the option to receive USD via the SWIFT network, means you can accept payments from clients and marketplaces in the U.S.¹

Meanwhile, Square focuses on U.S.-based businesses through Square Checking. It gives merchants instant access to their sales revenue with no monthly fees or minimum balance requirements.

All funds are available to spend right away via a Square Debit Card, which can be issued to up to five team members.² You can make ACH transfers, pay vendors, print checks and even deposit cash at partner locations.

While it doesn’t offer multi-currency receiving like Payoneer, it’s tailored for domestic businesses that want integrated payment processing.

Payoneer vs. Square: Costs and Exchange Rate

It's free to set up an account on both Payoneer and Square with access to a certain number of currencies. However, some other fees are associated with using the platforms.

Save Time and Money On Overseas Payments With Wise Business

Wise Business can help you save big time on international payments.

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in currencies.

Signing up to Wise Business allows access to BatchTransfer which you can use to pay up to 1000 invoices in one go. This is perfect for small businesses that are managing a global team, saving a ton of time and hassle when making payments.

Some key features of Wise Business include:

• Mid-market rate: Get the mid-market exchange rate with no hidden fees on international transfers

• Global Account: Send money to countries and hold multiple currencies, all in one place. You can also get major currency account details for a one-off fee to receive overseas payments like a local

• Access to BatchTransfer: Pay up to 1000 invoices in one click. Save time, money, and stress when you make 1000 payments in one click with BatchTransfer payments. Access to BatchTransfer is free with a Wise Business account

• Auto-conversions: Don't like the current currency exchange rate? Set your desired rate, and Wise sends the transfer the moment the rate is met

• Free invoicing tool: Generate and send professional invoices

• No minimum balance requirements or monthly fees: US-based businesses can open an account for free. Learn more about fees here

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Payoneer vs. Square: Features

Payoneer and Square differ in terms of regulation, international familiarity and ease of use. Here's a comparison of some notable features of Square and Payoneer.

Payment Gateway Integration

Payoneer lets you receive payments in USD directly from major global marketplaces. Sellers can link provided bank details (e.g., account number, routing codes) for USD, EUR, GBP, JPY, AUD, CAD and more to platforms like Amazon, Etsy and Fiverr.

Square specializes in streamlined transaction acceptance across various channels. Its payment APIs and gateway let businesses process in-store, online and mobile payments, with support for credit and debit cards, digital wallets (Apple Pay and Google Pay), invoicing and POS integrations.

International Reach

Payoneer powers cross-border transactions in over 200 countries and territories and offers support for more than 150 currencies.

Square operates under a parent company called Block. It serves merchants primarily in the US, Canada, Australia, Japan, the UK, France, Spain and Ireland. It is a global leader in payment processing.⁶

Ratings

Payoneer has a user-friendly platform with clear pricing and responsive customer support. Their Mastercard debit card adds extra convenience for quick access to earnings. According to Trustpilot, Payoneer has a Great rating after 61k reviews.⁷

Square delivers a highly user-friendly ecosystem with flexible checkout tools, drag-and-drop POS solutions, hardware options and seamless invoice creation. Square is rated as Great on Trustpilot with 7k reviews.⁸

Regulation & Compliance

Payoneer operates in the United States as a registered Money Services Business (MSB) with the Financial Crimes Enforcement Network (FinCEN). Square is also registered with FinCEN as a Money Services Business and holds individual money transmitter licenses in nearly all U.S. states and territories.

Final Thoughts

Payoneer and Square offer U.S. businesses and entrepreneurs different options. Payoneer is aimed more at companies making cross-border transactions in multiple currencies, while Square is better suited to businesses making local or in-person transactions.

Be sure to determine what product works best for your company and the way you do business.

Frequently Asked Questions

Is Payoneer better for freelancers working with overseas clients?

Payoneer is a good choice for freelancers with international clients because it provides local receiving accounts in multiple currencies and has flexible withdrawal options worldwide. Square, while better for in-person and online sales, is more focused on merchant transactions and card processing.

Do Payoneer and Square both work without a business license?

Both platforms allow individual accounts. Payoneer supports freelancers, while Square accepts individuals selling goods or services without a formal business entity. However, both require tax information (such as a Social Security Number in the U.S.) for verification.

Which service has better mobile app features, Payoneer or Square?

Square’s mobile app is more robust as it offers a full point-of-sale system, letting you process card payments, track sales and manage inventory. Payoneer’s app focuses more on account management, such as viewing balances, receiving payments, sending funds and accessing transaction history. It depends on the users’ needs and preferences to choose any one.

Are there hidden fees in Payoneer and Square?

Both Payoneer and Square publish their core fees, but some costs can surprise new users. Exchange rate markups and inactivity fees are often overlooked on Payoneer. For Square, occasional users may not realize that manually keyed-in transactions have higher fees and instant transfers cost extra.