Payoneer

What is Payoneer

Payoneer is a global payment platform that helps businesses, freelancers, and online sellers to send and receive money internationally. Its main purpose is to make cross-border commerce simple, like doing business locally. The platform provides a multi-currency account that allows users to get paid by international clients and marketplaces as if they had a local bank account in many countries. Payoneer was founded in 2005 and has its headquarters in New York City, USA. It serves millions of users in over 190 countries and is a popular choice for professionals on platforms like Upwork, Fiverr, and Amazon.

Payoneer Features

Payoneer offers a set of tools designed for global business transactions. Here are its main features:

• Multi-Currency Account: Hold and manage balances in several currencies like USD, EUR, GBP, JPY, and more. This helps you avoid high conversion fees when dealing with international clients.
• Local Receiving Accounts: Get virtual bank account details for different countries. You can give these details to your clients in the US, UK, EU, Japan, and other regions to receive payments like a local, avoiding expensive wire transfer fees.
• Marketplace Integration: Connect your Payoneer account directly with over 2,000 marketplaces and platforms, including Amazon, Airbnb, Upwork, and Fiverr. This makes getting your earnings fast and easy.
• Request a Payment: Send payment requests or invoices directly to your clients. They can pay you using a credit card, ACH bank debit, or bank transfer.
• Pay Suppliers and Contractors: Use your Payoneer balance to pay your team members, suppliers, or contractors for free if they also have a Payoneer account. You can also pay them directly to their bank accounts.
• Payoneer Debit Card: Get a physical or virtual Mastercard linked to your account balance. Use it to pay for business expenses online, in stores, or withdraw cash from ATMs worldwide.
• Withdraw to Local Bank: Transfer your earnings from your Payoneer account to your local bank account in your country's currency.
• Capital Advance: Eligible businesses can receive working capital based on their future marketplace earnings. This helps businesses to invest in growth without a long application process.

Payoneer Pricing Plans

Payoneer does not have traditional monthly subscription plans. Instead, its pricing is based on transaction fees. The cost depends on the type of transaction you are making. Here is a general breakdown:

• Receiving Payments: It is free to receive payments from another Payoneer customer. Receiving payments through local receiving accounts is also free for most currencies (like EUR, GBP). For USD, a small fee may apply. When a client pays you via credit card, a percentage-based fee is charged.
• Making Payments: Paying another Payoneer user from your balance is free. Paying a non-Payoneer user's bank account from your balance has a fee of up to 2%.
• Withdrawing Funds: Fees for withdrawing money to your local bank account vary. If you withdraw in the same currency (e.g., USD balance to a USD bank account in the US), there is a small fixed fee. If currency conversion is needed, a percentage-based fee above the market exchange rate applies.
• Card Fees: The Payoneer card has an annual fee. There are also fees for ATM withdrawals and for transactions that involve currency conversion.

Payoneer Free Plan

Registering for a Payoneer account is free. There is no monthly fee for maintaining the account as long as you use it. However, there is an annual account fee of $29.95 if you do not have any transactions in your account or on your card for 12 months. For active users who regularly receive or send payments, the account is effectively free to maintain, but transaction fees will apply for using the services.

How to use Payoneer

Getting started with Payoneer is a simple process. Here are the typical steps:

1. Sign Up: Go to the Payoneer website and register for an account. You will need to provide personal or business details and an official ID for verification.
2. Get Verified: Complete the verification process. This is important for security and to unlock all account features.
3. Receive Payments: Once approved, you can access your local receiving account details. Share these details with clients or link your Payoneer account to marketplaces like Upwork or Amazon to get paid.
4. Manage Your Funds: When you receive a payment, the money appears in your Payoneer balance. You can see all your transactions in your dashboard.
5. Use Your Money: You have several options to use your funds. You can withdraw them to your local bank account, pay suppliers or contractors, or use the Payoneer Mastercard for online and in-store purchases.

Pros and Cons of Payoneer

Pros:

• Global Reach: Supports payments in over 190 countries and multiple currencies.
• Local Receiving Accounts: Makes it easy and cheap to get paid by international clients.
• Marketplace Friendly: Integrates with thousands of popular freelance and e-commerce platforms.
• Flexible Payouts: Offers multiple ways to use your money, including bank withdrawals and a debit card.
• Fast Payments: Payments between Payoneer users are instant and free.

Cons:

• Complex Fee Structure: It can be difficult to understand all the different fees for various transactions.
• Customer Support: Some users report that customer service can be slow to respond.
• Inactivity Fee: An annual fee is charged if the account is not used for 12 months.
• Currency Conversion Rates: The exchange rates for withdrawing funds may not be as competitive as other services.

Payoneer integrations

Payoneer is well-known for its extensive integrations, especially with global marketplaces and platforms. This allows for seamless payment processing directly into a user's Payoneer account.

• Freelance Marketplaces: Integrates with platforms like Upwork, Fiverr, PeoplePerHour, and 99designs.
• eCommerce Marketplaces: Works with Amazon, eBay, Wish, Lazada, and many others for seller payouts.
• Stock Photo & Creative Marketplaces: Connects with Getty Images, Adobe Stock, and Envato.
• Vacation Rentals: Integrated with Airbnb and Booking.com for host payouts.
• Accounting Software: Payoneer can be connected with software like QuickBooks to help manage and reconcile business payments.

Payoneer Alternatives

• Wise (formerly TransferWise): A strong competitor known for its transparent, low-cost currency conversion fees. Wise also offers a multi-currency account with local bank details, often with better exchange rates than Payoneer.
• PayPal: The most widely known payment platform. It is very easy to use but generally has higher fees for international transactions and currency conversions compared to Payoneer.
• Stripe: A powerful payment processing platform for online businesses. While it's not a direct alternative for freelancers receiving payments, its Stripe Connect feature is a strong alternative for marketplaces needing to pay out to sellers and service providers.
• Skrill: A digital wallet service that is popular in Europe and for online gaming. It allows users to send and receive money internationally, but it is not as widely integrated with freelance marketplaces as Payoneer.

Payoneer API

Yes, Payoneer provides a set of APIs for businesses and marketplaces. The Payoneer API allows for the automation of global payouts, making it possible to pay suppliers, freelancers, and partners around the world programmatically. This is mainly for businesses that need to make mass payments.

To get access to the API, you need a Payoneer business account and must apply for API access through their developer portal. It is not available for individual accounts. Once approved, you will receive API credentials (client ID and secret) to authenticate your requests.

Here is a conceptual example in Python of how you might use the API to initiate a payout:

import requests
import json

# This is a conceptual example. Actual implementation will vary.

api_url = "https://api.payoneer.com/v4/payouts"

headers = {
    "Authorization": "Bearer YOUR_ACCESS_TOKEN",
    "Content-Type": "application/json"
}

payout_data = {
    "payments": [
        {
            "client_reference_id": "payment_001",
            "payee_id": "payee_email@example.com",
            "amount": "150.00",
            "currency": "USD",
            "description": "Payment for design services"
        }
    ]
}

response = requests.post(api_url, headers=headers, data=json.dumps(payout_data))

print(response.status_code)
print(response.json())

For detailed documentation, visit the Payoneer for Developers portal.

Payoneer Affiliate program

Payoneer has a "Refer a Friend" program, which works like an affiliate program. It is available to all Payoneer account holders.

• How it works: You get a unique referral link from your Payoneer dashboard. You share this link with friends, colleagues, or your audience. When someone signs up through your link and receives a certain amount in payments (typically $1,000 USD within the first year), both you and the person you referred receive a cash bonus (usually $25 USD each).
• Commission Rate: The standard commission is a fixed bonus, typically $25 for both the referrer and the new user. This is a one-time reward per successful referral.
• How to Join: If you have a Payoneer account, you are automatically eligible. Log in to your account and look for the "Refer a Friend" section to find your unique link and track your referrals.
• Getting Paid: The bonus is automatically added to your Payoneer account balance once the person you referred meets the requirements.