PayPal vs. Payoneer: Which one helped me earn an extra $1,700/year?


How do you usually receive payment from overseas?

If you are a blogger or an online marketer, chances are you’re using services like PayPal, Payoneer, and/or direct bank deposits. If you are, read on to learn something interesting that may help you save money.

On 1st December 2023, ShoutMeLoud will be 15 years old. It also means that for the past 15 years, I have been making money online. During the initial days, I had limited options regarding receiving overseas payments. I never worried about the “service” fees for sending or receiving funds.

Thanks to growing technology & new companies like Payoneer, Skrill, and Transferwise, I started to pay attention to these added fees.

In addition to Paypal, one of my other favorite payment services is Payoneer. They work a lot like PayPal, where you can send and receive money overseas. But what creates a difference between Payoneer & PayPal are the transfer fees.

In this guide, I will highlight some of the differences between these services and show you an example of the fees involved in one transaction done via PayPal & one done via Payoneer.

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Payoneer is a globally accepted platform for sending and receiving payments. It is widely used by freelancers, bloggers ,and entrepreneurs to get paid by their clients and affiliate companies.

Join Payoneer Check out our Review

Payoneer vs. PayPal: Which service is best?

I started using PayPal in 2008 & Payoneer in 2013. Since then, I have consistently used both services to receive payment from the U.S., Europe, and many other parts of the world. Both services are reliable, excellent, and offer a great customer experience.

However, calling both services the same would be wrong because they work very differently.

How does PayPal work?

When you create a PayPal account, the email account you signed up with will be used for sending and/or receiving payment. You can also link your bank account with PayPal to take the money you’ve received in it and put it into your local bank account.

When you want to receive payment, you share your PayPal address with the person, and he/she can send you money to your PayPal email address. Simple.

PayPal also supports a wide range of currencies, making it easy to use worldwide.

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Users (from many countries) can store money in their PayPal accounts. For example, if I send you $100, you can store that money in your PayPal account. For making future payments, you can use that $100 directly to make payment.

However, this feature is not available in many countries (like India) due to government regulations.

PayPal offers many other features, such as a payment gateway that can be used to sell stuff online, run a membership site, and do various other activities.

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How does Payoneer work?

When you sign up for a Payoneer account, it will link to your local bank account. If you need one, Payoneer will give you a local bank account in the USA, Europe, the United Kingdom & Japan. When you have to receive payment, you simply share the bank account details given by Payoneer (found under your Payoneer dashboard).

One benefit of this is you won’t lose money due to multiple currency conversions.

Here’s an example:

  • You are from India & you receive a payment from Amazon U.S. using Payoneer. Amazon will deposit that money in USD into your Payoneer U.S. account, and then Payoneer will transfer & convert the money into your local currency, which you can withdraw into your bank account.
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The above example is crucial for you to understand, as this is one big step that helps you save a lot of money that you otherwise would lose due to double currency conversions.

Check out:

Which service should you use? PayPal vs. Payoneer

Both of them have their advantages & disadvantages in certain scenarios. You should choose which one to use on a case-by-case basis.

Most affiliate marketing companies, ad agencies, and online services use PayPal.

In certain scenarios, when you have an alternative option to get paid using Payoneer, do the calculations and see if it makes sense.

In a majority of cases, Payoneer will help you save money.

But again, this only makes sense if Payoneer is a viable option.

Example: Receiving $2,300 from the United States (receiving in India)


Every month I receive $2,300/month from a direct advertiser (detailed in our monthly income reports). Until last month, I used PayPal to receive the money. Here is the screenshot from my PayPal account:

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PayPal converted USD into INR before transferring the money into my local bank account. This is where PayPal used their own conversion rates (rather than the market standard) & I ended up receiving:

$2,198.5 * 65.04 = INR 142,990


With Payoneer, I received the complete $2,300 & the conversion rate was the market standard:

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Amount received into my bank account: INR 152,629

The Difference:

For receiving $2,300 from the U.S. to India, while using Payoneer, I saved about $142/transaction.

In one year, that’s $1,704! 

$1,700 a year is indeed a considerable amount of money that I was otherwise losing by using PayPal to receive this money.

Conclusion: PayPal Vs. Payoneer

As I said above, you should have & use both PayPal and Payoneer accounts. Whenever possible, you may want to consider using Payoneer to receive payment.

Unlike PayPal, Payoneer offers services in select currencies. If you are receiving money in USD, Euro, GBP, or Japanese Yen, you should try using Payoneer & see if it helps you to save money or not.

Create PayPal account || Create Payoneer account

In my testing, Payoneer helped me to save a big chunk of money over PayPal.

If you have the chance to switch to Payoneer for receiving and/or sending certain payments, you should not miss the opportunity to do so.

What are your thoughts on PayPal vs. Payoneer? Has Payoneer saved you money? Let me know in the comments below!

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Authored By
A Blogger, Author and a speaker! Harsh Agrawal is recognized as a leader in digital marketing and FinTech space. Fountainhead of ShoutMeLoud, and a Speaker at ASW, Hero Mindmine, Inorbit, IBM, India blockchain summit. Also, an award-winning blogger.

56 thoughts on “PayPal vs. Payoneer: Which one helped me earn an extra $1,700/year?”

  1. abel abel

    Yeah definitely Payoneer is far better !

  2. vikrant

    Have been using payoneer since a while. Definitely a worthy alternative to paypal

  3. Eddie B.

    It was really appreciate i already have been tired with paypal fees .

  4. Atul Sinha

    Thanks Harsh, I was aware about PayPal and TransferWire only… but after reading this article I found some other ways….. Thanks.

  5. VK Verma

    Thanks for the information about Payoneer… Now, i will change my account for payments…

  6. Mahesh Chopra

    Awesome write.I think PAYONEER is the best for online money rather than Pay Pal which off course takes high commission .I will surely sign up with PAYONEER.Keep sharing.

  7. UdayKumar

    If you Withdraw $10000 from Paypal, There is a fixed fee of just $45.

  8. Rahul stark

    thank you so much Harsh Sir For this important Details.

  9. Md Tohidul Islam Tusher

    Thanks for writing this article. Will sign up for
    Payoneer right away.

  10. james

    Hi Harsh,

    Thanks for sharing this important issue. First, I run a blog, and I am based in Nigeria. PayPal is a no go area for those of us in the country, however, Payoneer has been so helpful. Since when I started using Payoneer, I have never regretted.
    Secondly, at one time, I was using a friend’s PayPal account to receive my affiliate commissions, I discovered that the fees PayPal charges are not just fair.
    Personally, I recommend the use of Payoneer over PayPal, going by my own experience.

    Thanks for sharing.

  11. Ketan Bhalodi

    Nice Article Harsh sir, PayPal is old but Payoneer is grow fast also in my point of view Payoneer is better than Paypal.

  12. Luqman Marwat

    No Doubt, Paypal Is best. I use for freelancing payments. But Also i have payoneer nd also helping me in many ways. Very nice Article.

  13. Abdullah

    Hi. I am using payoneer from last 3 years..its the best service..i am using it for receiving funds from g-adsense.

  14. Gennie

    I my opinion payoneer is way much better then PayPal. I have also faced the problem of low dollar rate in Paypal.

  15. Rohit

    Hey harsh,
    I heard that payoneer also gives 25$ benefit after the first transaction of 100$ … Is it Right

    1. Harsh Agrawal

      That’s true. If you signup using ShoutMeLoyd Payoneer link, you will receive $50 instead of $25 🙂

      1. Vishal

        Thanks Harsh for this important info , now I’m using PayPal service… , I will also try payoneer for next payment receive…. and make account using your link and too thanks for 50$…which I get with your link..

  16. Sadhan Pal

    PayPal is more global than Payoneer. I’ve seen PayPal is used most of the countries around the world. Although, it’s not yet in Bangladesh. But in my eye, it is the best global payment method and it’s payout is more minimum than Payoneer. So ultimately, PayPal is the best for global citizens! What you say, sir?

    Sadhan Pal

  17. mike

    Dear sir thank you for sharing such a nice information with us.Your article is very useful.your information on different between paypal vs payoneer is very marvelous.

  18. Madan Gehlot

    For me, Paypal is very bad. If you are a seller and if buyer dispute aginst last 6 month’s payment, your account will be on hold instantly, the balance will go negative instantly and all next payments will be first adjusted toward negative balance. 99.999 % chances are buyer will get favor and you will lose money. This is my recent experience. I proudly have -2500 USD PP balance.

  19. Mon Tan

    Fantastic post

    Have been using payoneer since a while. Definitely a worthy alternative to paypal


  20. Vijaygopal Balasa

    Wow awesome services. I’m going use both PayPal and Payoneer service. Thanks for providing great information

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