PayPal or Payoneer: What is Best Way to Receive Money?

If you work online, you probably have heard of PayPal or Payoneer, but what is the best way to receive money while working as a digital nomad?

Learn below if PayPal or Payoneer (or both) are the best solution for receiving payments online.

paypal or payoneer

Photo by Ed Ivanushkin

If you work remotely, as a digital nomad or not, odds are you will have some clients or partners from different countries, willing to pay you with different methods. Some of the most popular options are PayPal and Payoneer. Let’s analyse these two payment processors and try to identify what is the best option for your requirements.

Receiving Money Online as a Digital Nomad

No matter what you do as a digital nomad, it is probably up to your clients to decide how they will pay you. For a few lucky digital nomads, you will have the possibility to bargain and organize a payment agreement that will be suitable for both of you.

But in most cases, there is not much room for arrangements, and you might even not be able to contact the company paying you directly, being more or less tied to the options they offer.

These situations happen pretty often and affect different niches of online businesses such as: freelancers, ebook writers, affiliate marketers, retailers, coders and digital artists.

PayPal or Payoneer: Overview

PayPal has been the market leader for online payments for a long time. Luckily for most people working online, new options are appearing and Payoneer is one of them. The advantage of both PayPal and Payoneer lies on the fact that most big websites accept them as a form of receiving funds.

Being able to withdraw funds to your actual bank account can be quite complicated. This is especially the case if you live in countries with a less developed banking system. Payoneer and PayPal simply this process in a cheap and effective way.

PayPal: Advantages and Disadvantages

PayPal has been for many years, one of the only options online workers had to receive their money. It’s appeal comes from the fact you can transfer even small amounts between different countries instantly, while bank transfers can take a few days and make no sense for small amounts due to high fees per transaction.

With PayPal you can get your payment fast in most countries. Once the funds are on your PayPal account it take just a few working days to get them transferred to your bank account. This process is normally free or with very small fees. You can also buy a lot of items online with your PayPal funds.

The disadvantages of PayPal will also depend from the country where you are located. Ina few countries you can get a PayPal debit card and use it on your daily shopping or even on travels. However, for most countries this option is not available.

The second disadvantage that affect users in some countries is that you may not be able to withdraw your funds. If you live in one of these countries, Payoneer might be a great option.

Payoneer: Advantages and Disadvantages

Payoneer has been founded much later than PayPal, but it’s gaining popularity during the last few years.

The greatest advantage of Payoneer is that they will send you a debit card to pretty much every country. And that is a big difference.

You can use your card directly to pay for almost anything, anywhere. Without having to worry about how to get your money to your bank account. You can also transfer your Payoneer funds to your bank account if you want, though.

This is a huge advantage if compared to PayPal, where the card is available for just a few countries. But Payoneer has a disadvantage too. Payoneer is widely accepted, but for the time being, PayPal is still much more present. Un many situations, you will have PayPal available as a payment method, but Payoneer not.

PayPal or Payoneer: Verdict

It really depends on which country you are from, to determine if PayPal or Payoneer is the best option. If you live in the US or Western Europe, there are very few differences between them. If you live in countries like Pakistan, Ukraine, Montenegro, Macedonia, Bolivia, Paraguay or Bangladesh, just to name a few, probably Payoneer will make it easier for you to actually access your funds.

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