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Whether you’re a freelancer, run a small business, or head an enterprise, disbursing payments and receiving funds involves more than counting dollars and cents. There are steps to take to ensure money leaves and returns to your bank account efficiently.
That’s why, from fraud detection to payment methods, cross-border capabilities, and mass payments, your accounting software solution should cover it all.
When it comes to payment processing, system capabilities can make or break your operations and seriously affect growth. When shopping for the best brands, people often find themselves looking at Payoneer vs Hyperwallet.
Here we take a closer look at both programs, top features, pricing, global capacity, and how they can meet your company’s needs right now.
What is Payoneer?
Payoneer is located in New York and was founded in 2005. It functions as an online platform for money transfers (domestic and international), digital payments, and provides companies with extra working capital.
With a transparent and easy-to-use dashboard, users can track their account balance, payments, and full transaction history (including transaction fees and foreign currency amounts) in real-time.
The Payoneer platform supports over 200 countries with 150 local currencies and is a worldwide member service provider of Mastercard. Over 5 million customers around the world use Payoneer every day to send and receive payments.
Top brands that use Payoneer include Google, Amazon, eBay, Airbnb, Rakuten, Adobe, Upwork, and Fiverr.
How Does Payoneer Work?
Unlike Payoneer alternatives with a point of sale (POS) system, Payoneer does not let you directly charge customers. Instead, a business requests payment through the platform or waits for the customer to initiate payment.
Payoneer gives you the ability to directly withdraw funds with a debit card, as well as send and receive funds domestically and internationally (including a local bank transfer and cross-border payments).
The payment platform immediately connects seller accounts with customers for e-commerce and online payments. Businesses can send direct payment requests or invoices to customers, who then have the option to pay online via a credit card or bank account.
Payoneer supports these currencies:
USD, EUR, GBP, CAD, AUD, JPY, and CNH.
Pros of Payoneer
- Offers unique, multi-currency bank accounts to facilitate international payments.
- Superb customer support with accounting integration and ecommerce capabilities.
- Reasonable exchange rates that are better than similar payment processors.
- Transfers are free between Payoneer account holders, with 4,000+ active users worldwide.
- Simplified setup and integration that requires less user data than Payoneer alternatives.
Cons of Payoneer
- If one user does not have a Payoneer account, fees can run high.
- The payment gateway is not established with a bank and does not hold funds.
- The mobile iOS app can be improved with better analytics and bank account data.
What is Hyperwallet?
Founded in 2000, Hyperwallet is a San Francisco-based global payment system that has more than 4 million payees and handles transactions in 150+ currencies. Unlike Hyperwallet alternatives, the brand is known for servicing the B2C segment, including credit unions and multi-level marketing.
The payout platform provides growing companies with a transparent and frictionless way to manage payables and enhance the payee experience. Available in over 170 countries, Hyperwallet was acquired by PayPal in 2018.
Trusted by e-commerce, on-demand, and enterprise businesses, Hyperwaller offers a flexible payment technology that empowers organizations to efficiently and securely distribute funds from a single payment environment.
How Does Hyperwallet Work?
Hyperwallet enables a business to send payments online or use PayPal’s robust payout API. Send up to 5000 payments at once. The system also processes all major debit and credit cards to provide third-party payouts.
In both wire transfer and direct deposit options, payees are required to enter their account number, type, and bank details. Once requested, funds can be transferred to the payee’s bank account within 2 business days with direct local deposits, and up to 5 business days for wire transfers.
The Hyperwallet system offers detailed payment histories, tax reporting, and can send payouts through the following:
- PayPal
- Venmo
- Bank Account
- Direct to debit
- Check
- Prepaid card
- eGift Cards
Unlike Hyperwallet competitors, this system also offers cash pickup.
Pros of Hyperwallet
- The system is adaptable to a variety of different business cases.
- The customer-facing portal offers a memorable experience with ease of use.
- Securely send commissions, rewards, claims, and rebates to banked and unbanked payees.
- Custom-configured marketplace and large enterprise integrations.
- Payout flexibility and control to streamline operations and scale your business.
Cons of Hyperwallet
- Customer support can be slow to respond and the setup process can be lengthy.
- There can be minimal communication about bugs and/or updates to the system.
- The system is set up for American tax, which makes it challenging for international users.
Payoneer vs Hyperwallet Comparison Table
| Payoneer | Hyperwallet | Tipalti | |
|---|---|---|---|
| Receiving Cost | It’s free from another Payoneer account or 1% via ACH and 3% via credit card. | The account is free but fees vary based on location and currency exchange. | 6 international payment methods – cost varies |
| Sending Cost | It’s free from another Payoneer account or 1% via ACH, 2% to another bank account, and 3% via credit card. | Local Bank Transfer Fee – $3.00/ Transaction. Direct To Card Transfer Fee – $1.75/Credit card $2.50/Debit card, acct fee $3.00/month after 90 days. | 6 international payment methods – cost varies |
| Speed | 1-2 days | 2-5 days | 0-2 days |
| Mobile App | Yes | Pay Portal Payout Experience | No |
| Currencies | 150 | 150 | 126 |
| Debit Card | Mastercard | Visa | No |
| International Payments | Payoneer Local Currency Accounts in 200 countries. | Funds across 170+ countries. | Pays to 196 countries. |
| Taxes | Has a tax agreement with the IRS. | 1099 Tax Reporting with detailed payout history. | There is built-in tax and VAT compliance. |
| Mass Payments | Automated batch-pay up to 200 at a time. | Mass Payments with PayPal or Venmo. | Global mass payables automation solution |
| Business Capital | Merchant cash advance through Amazon and Walmart, up to $750,000. | No. | Not yet |
Payoneer vs Hyperwallet Fees: Who Has Less?
When comparing the costs of Hyperwallet vs Payoneer, it’s important to look at the pricing structure in a few different buckets, like:
Monthly Fees
Although both systems claim to offer the account for free, there are some hidden catches. For example, Payoneer will charge an annual account fee of $29.95 if you do not use it for 12 months. This is considered maintenance.
Similarly, Hyperwallet offers an account for “free”, however, if you do not withdraw funds within 90 days of receiving them, there is a $2.95 USD/month storage charge.
Getting Paid
For Payoneer, a business can send payment requests to clients with the option to pay via credit card and ACH bank debit (the US only). They can also pay via local bank transfer into your receiving accounts.
The cost of receiving funds through Payoneer is as follows:
- 3% Credit Card (all currencies)
- 1% ACH Bank Debits
If both users have a Payoneer account, transfers are free. They are also free if you are using your bank account through Payoneer.
The fees for getting paid through Hyperwallet depend on where you are transferring money. The costs for receiving funds are:
- Local bank transfer -$1-$3
- Wire transfer – $3-$20
- Direct to card – $1.75/Credit card $2.50/Debit card
- PayPal account – $1
- Cash pickup – Depends on the partner; Western Union is $20, while MoneyGram is $8.
Paying Out
Paying customers directly from your Payoneer balance to their bank account via a bank transfer costs up to 2% of the transaction and 3% for a credit card.
A fixed fee of $1.50 also applies when you use a USD, EUR, or GBP balance to make a payment to a bank account that is:
• In the same currency
• In a country where the payment currency is the local currency
• In the same country as your Payoneer profile
Payoneer customers can make batch payments to 200 bank accounts at once with a 2% fee.
For Hyperwallet customers, the fees will vary, but you can batch up to 5,000 payments at once, which makes it ideal for bigger businesses.
Currency Conversion
For Payoneer, there is a currency conversion charge of 2% to 2.75% for international transactions (depending on the country). You are also subject to Mastercard’s exchange rates if you use it in a non-listed currency.
One cost not disclosed by Hyperwallet is the foreign currency exchange rate at which funds are transferred. It should be noted that the exchange rate is lower than the open market exchange rate, and better than banks and other payout platforms.
Prepaid Card
The prepaid Mastercard can be used as a debit card for any type of transaction, including e-commerce. There is a $29.99/year fee for the Payoneer Mastercard. It can be used at any ATM, but has a maximum daily limit of $2,500. According to the fee structure, they will also charge you an average of 1% of the transaction in foreign exchange fees.
Hyperwallet tries to push its prepaid program as a new solution for payees. They have two cards, a Hyperwallet design and a custom one. A branded card will cost an extra fee and is only offered to Enterprise and Marketplace clients. When it comes to Payoneer vs Hyperwallet Walmart sellers, they generally prefer this route.
A Smart Alternative to Payoneer & Hyperwallet
Another smart option to consider is Tipalti. The global mass payments solution will help a business automate end-to-end payables, approvals, and the payments process to streamline workflows and save up to 80% of manual labor.
Tipalti provides self-service supplier onboarding, tax compliance, fraud controls, and a reduction in errors. It’s the perfect alternative to both Payoneer and Hyperwallet!
When comparing Tipalti vs Payoneer or Hyperwallet, it’s considered a smart alternative for a few reasons, like:
Comprehensive Payment Automation
Tipalti offers a robust and comprehensive payment solution that poses heavy competition for Payoneer and Hyperwallet. The system streamlines the entire payables process, end-to-end, and handles everything from supplier onboarding and invoice management to payment processing and automated reconciliation. This is a particularly beneficial solution for businesses with a large volume of payments.
Integration and Scalability
Tipalti easily integrates with various ERP systems, accounting software, and other third-party payment platforms like Shopify and Stripe. It can seamlessly handle large payment volumes, making it a suitable platform for growing organizations that seek to scale payment automation.
Global Payment Capabilities
The Tipalti solution supports payments in 190+ countries and 120 currencies, making it a great choice for companies looking to expand internationally. The system provides a wide range of payment options, including PayPal, local bank transfers, wire transfers, ACH and global ACH, and more. This enables businesses to pay partners and suppliers more efficiently worldwide.
Advanced Analytics and Reporting
Tipalti offers comprehensive reporting and analytics capabilities that provide companies with actionable insights into their payment operations. The platform generates detailed financial reports on currency exposures, payment volumes, statuses, and more. This deep data helps companies optimize processes, make more informed decisions, and improve financial forecasting.
Compliance and Risk Management
Using Tipalti, companies can prioritize compliance with tax regulations, anti-money laundering (AML) laws, and other financial rules. The system performs a thorough screening process, including Know Your Customer (KYC) and Anti-Bribery and Corruption (ABC) checks, to mitigate risk and ensure payments are made to the right recipients.
Supplier Management
The Tiaplti solution includes robust supplier management capabilities that allow a business to automatically onboard and manage suppliers from around the world. The system has a self-service portal that suppliers can use to update their payment details, access payment-related data, and view transaction history. This helps to reduce administrative costs and improves supplier relationships.
Enhanced Financial Controls
Tipalti provides organizations with better financial controls through configurable approval workflows and rule-based automation. This enables businesses to define thresholds for approvals, set up payment rules, and implement segregation of duties in order to prevent fraud and maintain financial integrity.
Are you ready to start comparing top global payment methods? There are a variety of options for paying international suppliers, from credit cards and prepaid debit cards to international ACH and wire transfers. Each has its own benefits and drawbacks that impact the satisfaction of important suppliers and the workload of your finance team. Read more in the ebook: Comparing the Top Global Payment Methods.
Summing it Up
When it comes to Hyperwallet vs Payoneer, they both offer very similar services, like worldwide money options, digital payments, mass payouts, and ecommerce capabilities. However, while Payoneer is a single entity, Hyperwallet is an extension of PayPal.
This article may also be useful for merchants and resellers who use Walmart Marketplace, as Payoneer vs Hyperwallet are your two options for payouts. In this case, Payoneer may be a more attractive option as bank transfers are free on the Walmart platform.
If you are sending mass payments globally, Hyperwallet may be the more attractive alternative. A business can send thousands of transfers at the same time, with the security and protection of PayPal.
Whatever option you choose, automating the payment process is the first step in future-proofing your finance, streamlining payments, and creating space for business growth.
