Global payments have become an essential component of many business models, especially for companies working with partners such as contractors, freelancers, affiliates, influencers, creators, and others.
As companies continue to embrace digital transformation and remote work, we can expect to see even more growth in the mass payments space.
More traditional payment methods, like checks and wire transfers, are being phased out by those using digital payment platforms. These systems offer faster, cost-effective, and more secure ways to pay partners.
Two of the more popular options for mass payment platforms are Tipalti and Payoneer. In this Payoneer vs Tipalti article, we compare the main features and capabilities of each platform, and discuss which solution works best for managing all of your mass payment needs.
What Does Tipalti Do?
Tipalti is an international payments platform that allows a business to manage mass payments for high-velocity companies across the entire payment operations cycle.
This includes everything from partner onboarding and management to instituting controls, executing global payments, and reconciling payables data across a multi-entity organization.
Tipalti Product Capabilities Overview
Tipalti has a 99% customer retention rate and offers capabilities like:
Companies can scale quickly with Tipalti by making global partner payables strategic with operational, compliance, and financial controls.
A business can efficiently and securely pay thousands of partners within minutes, whether that’s through local bank transfers or international ones.
Tipalti offers self-service partner management with a multi-language portal that offers a choice of payment methods. The system validates payment and banking data in real-time workflows using 26,000 global banking rules to help reduce payment errors.
The knowledge base is accessible 24/7 for partner visibility into payments. Partners can also receive proactive Instant Payment Notifications (IPNs).
Cloud-based Tipalti guides partners through W-8 and W-9 series tax forms. A business can collect and validate IRS and VAT tax IDs with a KPMG-approved tax process.
The system enables tax compliance and allows an organization to generate 1099/1042-S tax preparation reports that can be submitted via Tipalti’s e-filing service.
Using Tipalti, a business can send cross-border payments to 196 countries in 120 currencies with 6 different payment methods.
You can seamlessly trigger payments to your entire partner base with performance analytics derived from your performance marketing systems. Easily integrate detailed, accurate transaction and reconciliation reports with your ERP system too.
Tipalti is a SaaS that transforms partner payments for today’s fastest-growing, digital-first companies. Every developer, creator, freelancer, streamer, affiliate, or publisher on your platform can count on a best-in-class partner experience; while you can count on saved time and increased working capital.
The pricing model for Tipalti is designed for growth. Pricing starts at $149/month for the platform fee. As your business continues to scale and grow in complexity, effortlessly add capabilities like W-8 tax forms or multi-entity payables.
What Does Payoneer Do?
Payoneer is a money transfer and payment service that extends across borders and operates just like a traditional bank account.
Once you give customers your Payoneer account number, money can be received into your merchant account, and then transferred into your local bank account. The global financial services business provides online money transfer and digital payment solutions to organizations, professionals, independent contractors, and freelancers.
Payoneer Product Capabilities Overview
Payoneer allows a business to make and receive payments from partners, customers, and suppliers in 200+ countries and territories worldwide. They offer working capital for brands like Amazon and Walmart. Additional capabilities include:
Payoneer offers a cost-effective and secure way to send and receive cross-border payments in USD and multiple currencies.
Payoneer enables a business to pay their employees, freelancers, and affiliates in multiple currencies and countries, using a single platform.
Acts as a payment gateway so companies can process payments from multiple sources, including bank transfers, credit cards, and e-wallets.
Virtual Bank Accounts
The system provides a company with virtual bank accounts in multiple currencies, which can be used to receive payments from clients and marketplaces.
Payoneer is a platform that offers a range of financial services to help businesses and individuals manage their finances more efficiently, simplify global transactions, and expand international reach.
Companies have a fast and secure way to accept online payments from customers, whether it’s through a marketplace, website, or Android mobile app.
Payoneer’s pricing varies depending on the services you use and the countries involved. Signing up for an account is free, and receiving payments from other Payoneer users is also free.
If you accept payments from clients outside of the system, there may be a fee depending on the payment method and currency involved. Especially for point-of-sale transactions. The same goes for withdrawal fees from a Payoneer eWallet.
If you receive payments in a currency different from your account currency, Payoneer charges a currency conversion fee. This fee typically ranges from 0.5% to 3.5% per transaction.
Payoneer also offers a prepaid debit card (Mastercard), which may have fees involved for activation, replacement, and withdrawals.
Payoneer’s fees and charges can be complicated but are relatively transparent.
Forging a payables path with your partners can be challenging
Features of Tipalti vs. Payoneer
Although Payoneer and Tipalti both automate mass payments processes, each is designed with different features and functionality. Here’s a look at some of the differences between Tipalti and Payoneer.
Client-branded self-service portal with preferred payment method, currency, and payment thresholds. 26K+ rules validate payments, screen against OFAC/SDN lists.
Limited branding available. No real time vetting and validations.
Proactive, white-labeled payment status email updates. 24/7 Partner Hub portal, to reduce inquiries
Communications often Payoneer branded. Payees subject to marketing emails
Tipalti vs Payoneer 3 196 countries in 120 currencies with partner choice of payment methods including ACH, wire transfer, check, global ACH (eCheck), prepaid debit, and PayPal.
Make and receive partner payments in over 200 countries. No PayPal.
Incent partners to adopt safer, more efficient payment methods by covering a greater percentage of fees
No fee splitting. Complicated payee fees with charges for withdrawals, conversions, and prepaid debit card use
KPMG approved tax engine, collect forms W-9, W-8BEN, W-8BEN-E, W-8EXP, W-8IMY, W-8ECI, W-4, and Form 8233. Collect and validate IRS and VAT tax ID (49 countries) against 3,000+ rules, 1099 & 1042 prep reports, e-filing.
Comparable capabilities but no KPMG-approved process
FX conversion visibility for partners and advanced FX solutions, including intercompany transfers and hedging to reduce FX volatility risk.
Payoneer offers payee FX but no FX hedging.
Directly tie performance analytics & data to payments with performance marketing system (PMS) integrations. API sync with major ERPs, pre-built connectors with no-code approach for others.
PMS integrations not as deep (e.g. Everflow). No prebuilt ERP integrations
98% customer support satisfaction. US-based phone support. Avg. email resposone time
Slow customer support. Arduous KYC process for payees
Tipalti vs Payoneer 3 Self-bill invoices as required by government or tax processes.
No self-billing capabilities
REST APIs with world-class documentation and developer hub for creating automated processes.
Open APIs for mass payouts, embedded global collection for sellers, and integration with other services.
Which Solution Works Best for Your Business (and Why)
You need a robust global payment processing tool to scale your payment automation. However, purchasing any type of software is a commitment.
Thus, you should take time during your decision process. This is especially true for partner payments operations, where a best-in-class experience is critical to the success of your business.
Here are a few scenarios to help you decide which system works best:
Power your entire partner payouts operations
When to Choose Tipalti
Paypal is a critical payment method for your partners
Tipalti is one of the top Payoneer alternatives because they offer PayPal as an option for partners, while Payoneer does not. If PayPal payments are a requirement, businesses who use Payoneer must manage payments via disparate experiences and PayPal payments must be processed outside of Payoneer. Tipalti unifies six payment methods – PayPal, global ACH, wire, prepaid debit, ACH, check – in a single solution for seamless payment execution & reconciliation.
Tipalti uses a PayPal Mass Transaction (MT) model, with no funding or payout limits and faster payments that land after 1-3 business days. With the MT model, you receive white-glove service from Tipalti’s customer support team that boasts a 98% satisfaction rate, instead of PayPal’s support team. You’ll have a designated Customer Service Manager, Account Manager, and Implementation Manager for support whenever needed.
You also get Tipalti OFAC, Anti-Terror, or Anti-Narcotics list screening during partner onboarding and before each payment, even those payments processed via PayPal.
Your want to offer a best-in-class partner payment experience
Most Payoneer partners: (1) register for a Payoneer account [eWallet]; (2) receive funds to their account; and (3) withdraw funds to local bank accounts, if they are not using Payoneer’s prepaid debit card solution. With Payoneer, partners pay fees to withdraw funds, pay annual card fees, pay currency conversion fees on withdrawals and /or card transactions, and pay fees to be paid directly via credit card or ACH if they do not register for a Payoneer eWallet. Payoneer’s fee structure can be hard to understand.
With Tipalti, full transparency is provided into fees via payee FX. Tipalti also offers partner-friendly options like fee splitting to incent partners to adopt safer, more efficient payment methods by covering a greater percentage of fees.
Tipalti payments are delivered directly to your payees anywhere between the same business day to three business days, depending on the payment method, country, and currency. On-time, reliable, and accurate payments facilitate a positive payment experience and strengthen your reputation and relationships with your partners.
In addition to payment speed, payment visibility is another critical element of the partner experience. Tipalti delivers proactive payment status notifications to partners keeping them informed of when payments are processed, and when (and why) any payments fail. Partners can also view their complete payment history in an online portal, freeing your team from hours spent on inquiries into payment statuses. Partners are alerted if additional information is required to process payments, if tax forms need to be updated, and more. Tipalti has a comprehensive program and a robust team that monitors and manages all payment exceptions on a proactive basis.
You’re looking for custom branding
Tipalti allows you to put your brand front and center with a white-labeled parter payment portal that embeds securely in the HTML of your website via iFrame. The partner portal can be localized according to location, language, local currency, and preferred payment options.
During onboarding, partners are guided through a preferred payment selection. Then, banking details are automatically validated against 26,000 global rules to minimize errors. The portal is accessible to payees 24/7, where they can easily check on payment statuses.
Proactive emails are also sent out, reducing the time spent handling payment inquiries. In comparison, Payoneer also offers self-service onboarding options. However, the partner experience and emails are generally solution-branded.
When to Choose Payoneer
You are a small business with a single entity
Although the system offers customer support in 35+ languages, Payoneer has no multi-entity capabilities. If you’re a small business, this might not matter.
Tipalti’s platform comes with a mult-entity architecture that allows you to coordinate and manage payables across multiple entities. This includes capabilities like independent branding, payment methods, tax onboarding flows, payee communications, reconciliation, reporting, and modules per entity.Tipalti is a leading midmarket solution with over 4 million global payees and +2,500 global customers, including some of the world’s most respected brands like Twitter, Uber, and Roblox. Tipalti has a 99% customer retention rate (for 10 years), 98% customer support satisfaction, and strong reviews, with multiple awards and accolades.
You only require light financial controls
Whether your partners are domestic or global, maintaining tax compliance and strong financial controls is essential for business success.
The Tipalti solution offers a guided digital tax form collection process that meets IRS requirements as prescribed by KPMG, with over 1,000 validation rules (including TIN matching), to ensure correct and accurate data. Tipalti will digitally collect W-9 and W-8 tax forms via a guided process for payees, automatically calculate withholdings, generate 1099 / 1042-S tax prep reports, and provide e-filing services.
For non-US payers, local and VAT tax ID collection is available in 49 countries with 3,000+ validation rules built-in to help prevent ID errors and issues. For European countries, Tipalti also supports document collection so partners can provide additional information when needed and self-billing invoices where partners must approve invoices before payments can be processed. Payoneer‘s tax solution is not KPMG-approved, nor does it offer self-billing.
While Payoneer and Tipalti both screen against OFAC and other watchlists, only Tipalti automatically validates collected data against 26,000 global banking rules to help reduce payment errors by 66%.
Payoneer uses several third party tools to help mitigate fraud including: 41stParameter, RSA Adaptive Authentication, MaxMind, AU10TIX, InRule, IDChecker, G2 Web Services, IBM content analytics and others. Tipalti has built-in advanced fraud detection with features like Tipalti Detect, which uses AI to proactively identify fraud patterns. This technology has resulted in +7.4k payees blocked and $4M in potential savings to date.
You have simple integration and FX needs
Payoneer offers performance marketing system integrations to directly tie performance analytics and data to partner payments. However, its connections are not as robust as Tipalti. For example, in Payoneer’s integration with Everflow, payments need to be processed outside of the platform, whereas with Tipalti payments can be processed inside of Everflow. Payoneer also does not offer pre-built ERP integrations. Tipalti has prebuilt API integrations to several leading ERP platforms like Netsuite and pre-built connectors with a no-code approach for all other ERPs and accounting systems.
Payoneer offers both payers and payees visibility into FX rates; however, it does not offer more advanced features like FX hedging to payers. Tipalti provides advanced foreign exchange rate solutions like rate visibility, intercompany transfers, and FX hedging. Intercompany transfers will save you time and money on currency conversions for payouts across global entities, and FX Hedging will help to reduce volatility risk.
What Our Customers Say
With Tipalti, partner interaction no longer requires any bandwidth from our team. Photographers can change bank accounts or switch payment methods between PayPal, ACH, or wire transfers—it’s all self-service.Nicole Smith | CEO and Founder, Flytographer
Tipalti’s mass payout platform was exactly what we wanted. Our main priority was to find a technology solution that could digitize tax collection, improve reporting capabilities, and centralize multi-subsidiary payouts in one platform.Irene Altman Becklund | VP, Controller, Hims & Hers
I think 50% of the people we’re paying are outside of the U.S. Not having to deal with any added work or stress of having to know the tax and reporting implications in those various countries is super helpful. And the 1099 process for our finance team has been simplified as well.Greg Kampanis | SVP Operations and Business Development, Omnia Media
Attract & Retain Your Top Partners With a Superb Payment Experience
Your future success in today’s thriving digital economy relies on a best-in-class partner ecosystem with a phenomenal user experience. As competition increases, companies that rely on a digital-first, e-commerce, or marketplace model must prioritize partner satisfaction.
As more partners jump in the driver’s seat, brands must find a way to enhance their partner experience and cater to this new crowd.
According to our research, 87% of partners experience payment issues, and 35% of them have stopped working with problematic platforms.
Whether your business supports 5, 500, or 5,000 partners, make sure your operations are ready to scale quickly and are equipped to manage hyper-growth. Securing long-term health is about creating the best partner experience possible.
Get started with a free demo of Tipalti today.