Freelancers working internationally often need reliable platforms to receive payments from clients or make transactions. Two of the most popular platforms in this space are Payoneer and Wise (formerly known as TransferWise). Both options are designed to make cross-border payments easier, but they have distinct features that cater to different needs. In this blog, we’ll explore the basics of each platform, their advantages for freelancers, and the key differences between them to help you decide which is the best choice.
What is Payoneer?
Payoneer is a global financial services company that allows businesses and freelancers to send and receive payments internationally. It is particularly popular among freelancers and small businesses because it offers multiple ways to receive funds, including bank transfers and the option to use a Payoneer Mastercard for withdrawals. This makes Payoneer especially useful for people working with clients from various countries.
Additionally, Payoneer provides an ecosystem for cross-border payments that makes it easier for businesses to pay freelancers, vendors, and suppliers in different parts of the world. Its global presence is a key reason why freelancers in industries like e-commerce, digital marketing, and freelancing platforms gravitate towards Payoneer.
What is Wise?
Wise, on the other hand, is a money transfer service that focuses on providing fast and affordable international transfers. Its main draw is its transparent fee structure and the use of mid-market exchange rates, meaning there are no hidden fees when converting currencies. Wise also supports sending money to over 80 countries, and users can hold funds in multiple currencies in a Wise multi-currency account.
Unlike Payoneer, Wise is geared more towards individuals and businesses that want a cost-effective way to send or receive payments internationally. Its speed and low fees have made it a top choice for freelancers who regularly need to convert payments from different currencies.
Benefits of These Payroll Options for Freelancers & Their Clients
- Both Payoneer and Wise offer a range of benefits that make them valuable options for freelancers and clients alike:
- Both platforms offer much lower fees compared to traditional bank transfers. This is particularly helpful for freelancers who receive payments from international clients.
- Both platforms allow freelancers to hold funds in multiple currencies, which is crucial for those working with clients from different countries.
- Payoneer provides a Mastercard option, which allows freelancers to withdraw cash from ATMs, while Wise offers a multi-currency account that can send money to bank accounts around the world.
- Wise transfers are typically faster compared to Payoneer, which can take longer to complete payments.
- Both platforms make it easier for clients to send payments to freelancers without the complexities of international wire transfers.
Wise vs. Payoneer: The Differences
While both services have their strengths, they cater to slightly different needs. Let’s break down the key differences between Wise and Payoneer in the following areas:
Transfer Fees from Payoneer to Wise and Vice Versa
Payoneer generally charges around 3.5% for currency conversion fees and has additional fees for withdrawing money via their Mastercard. Wise, however, is known for its much lower transfer fees, charging between 0.5% and 1% depending on the currency and destination. Wise’s pricing structure makes it more transparent and usually cheaper for freelancers who frequently deal with international payments.
Costs and Exchange Rate
Wise uses the mid-market exchange rate, meaning freelancers get the real-time rate without added margins. Payoneer’s rates, on the other hand, include a small markup over the mid-market rate, making their transfers slightly more expensive.
Supported Accounts
Payoneer supports accounts from a wider range of countries, making it accessible for freelancers globally, regardless of whether they have a traditional bank account. Wise, while covering many regions, mainly supports transfers to bank accounts in North America, Europe, Australia, and parts of Asia.
Features
Payoneer stands out with its Payoneer Mastercard, allowing freelancers to withdraw funds from ATMs. It also provides more business-related features, such as the ability to bill clients and receive payments directly through the platform. Wise’s key features revolve around low-cost, fast transfers and the ability to hold funds in multiple currencies.
Speed
Wise tends to process payments faster than Payoneer. While Wise transfers can be completed in minutes to a few hours depending on the currency and destination, Payoneer transfers, especially withdrawals, can take a few days.
Convenience
Wise’s ease of use and fast onboarding process make it a convenient choice for freelancers. Payoneer’s additional features, like invoicing clients and withdrawing via the Mastercard, add a layer of convenience but at the cost of slower transaction times.
Security and Reliability
Both platforms are highly secure and regulated financial services. Wise has slightly higher customer satisfaction ratings due to its transparency and fast service. Payoneer also maintains a high level of trust but has received feedback about slower onboarding and payment processing times.
Which Should You Choose?
Choosing between Wise and Payoneer depends largely on your specific needs as a freelancer. If you value low fees and fast payments, Wise is likely the better option, especially if you’re regularly sending or receiving funds internationally. Wise’s transparent fees and excellent exchange rates make it a top pick for freelancers dealing with multiple currencies.
On the other hand, if you work with clients from regions that Wise doesn’t support or you need the flexibility of withdrawing cash with a prepaid card, Payoneer might be more suitable. Payoneer’s robust business features are also advantageous if you’re running a small business or frequently working with companies in different countries.
Payoneer vs Wise – Choosing What’s Best for You
Both Payoneer and Wise are excellent platforms for international freelancers, offering unique benefits based on your needs. Wise is ideal for freelancers who prioritize low fees, fast transfers, and transparency, while Payoneer provides broader accessibility and additional features like invoicing and prepaid cards. Whichever option you choose, both platforms are reliable solutions that can make your freelancing journey smoother and more efficient.