Payoneer vs. Hyperwallet vs. Tipalti: Scaling Mass Payments in the Digital Economy:
Disbursing payments to partners involves more than dollars and cents. From payment method choice to fraud detection and cross-border capabilities, your mass payment processor needs to do more than, well, issue mass payments. Simply put, payment processing capabilities can make or break your business operations and affect your company growth.
When shopping for a mass payment processor, businesses often compare Payoneer, Hyperwallet and Tipalti. Let’s take a closer look at the features of these platforms and how they meet the needs of companies in the digital economy and their capacity to scale globally.
Founded in 2005, New York-based Payoneer boasts millions of users in over one hundred countries. While a Payoneer remains a popular option to receive funds in un-banked countries, Payoneer has recently faced criticism in first world countries like France where the French government complained that “it could potentially be used to launder money” and created an “opportunity for open fraud” (See AirBnb Ends Controversial payment system in France). Payoneer has some big name strategic partners is one of the few payout processors that supports payouts in the adult video space.
Payoneer offers a prepaid branded MasterCard debit card, a remittance method that’s helpful for paying partners in unbanked countries or making micropayments of small amounts. Their ability to support heavily regulated industries like the adult industry make them an appealing payment provider for these networks. Like Tipalti, Payoneer supports multiple payment types,but prepaid debit card remains their most popular offering. However, unlike Tipalti, Payoneer doesn’t support PayPal, white-labeled partner onboarding, invoice processing, ERP integration, or tax data validation.
Founded in 2000, San Francisco-based global remittance system Hyperwallet has more than 4 million payees but only handles transactions in 31 currencies. Hyperwallet is known for servicing the B2C segment, which includes multi-level marketing companies and credit unions. In June 2018, PayPal announced the acquisition of Hyperwallet, but their integration remains unclear.
It’s worth noting that as of the writing of this article, Hyperwallet does not have money transmitter license’ in several key markets like California and New York. Limited tax functionality and ability to calculate withholdings or verify W8 tax forms can be troublesome for some companies. Hyperwallet also lacks pre-built integrations to most ERPs and financial systems, making reconciliation a difficult task.
Hyperwallet touts its ability as a single payment platform globally supporting individual and mass partner payouts with various payment methods: earnings, commissions, royalties, eWallet, prepaid debit card, and direct deposit. Like Tipalti, Hyperwallet has a cross-border payment network, including foreign exchange and local bank support. The small setup fee with no volume or term commitments makes Hyperwallet a popular choice for companies focused on a low barrier to entry and low risk.
Hyperwallet offers a handful of add-on services: providing tax identification forms for payees, rewarding payees through a loyalty program when they use the prepaid card, and allowing payees to use eWallet balances to make purchases in a payer’s store and redeem promo funds through a payer’s store.
Thriving in the Digital Economy
The gig and sharing economies are disrupting traditional business models. The capabilities of your mass payment provider will determine how your business succeeds in the ever-changing market. These four factors will make all the difference in how your large-scale payment provider grows and scales with your business:
Global tax compliance
Most mass payment providers provide cross-border remittances, but that isn’t the same as global tax compliance. Payers must adhere to tax withholding requirements, FACTA regulations, foreign taxes and more. Look for a mass payment provider who does more than collecting tax identification forms of payees. Automating tasks such as identifying country tax code or verifying of payee tax identification make a mass payment provider feel more like an active partner in your company. Automated global tax compliance solutions not only help startups or small businesses with limited bandwidth but also spares enterprises from manually verifying tax identification of partners and suppliers around the world.
White-label enhances your business operations because it strengthens the credibility of your brand. Your partners or suppliers can associate your brand with dependable mass payout services, which in turn, increases customer loyalty and expands your marketing reach as your company onboards additional payees. Look for a large-scale payout provider that maintains your brand on the account management portal and stemming communication such as email notifications of payment status or invoices.
Accounts payable doesn’t end after issuing remittances for hundreds or thousands of partners. Reconciling those payments with bank statements, invoices, and other interdependent processes is a necessary step that keeps the financial health of the company in check. This step is the month-end close.
Many companies regard the financial close as a necessary chore, and for businesses that disburse global remittances, the month-end closing becomes an even more daunting task. You need a mass payment provider that can nimbly untangle complex processes in a changing digital economy, uncovering opportunities to optimize and grow your business operations. Look for a large-scale payment platform that provides merged reports with the ability to drill down, making payment reconciliation an automated process.
Maintaining a competitive edge in the market means that companies must analyze if their processes are scalable. A mass payment platform like Tipalti empowers companies at every step of the mass payments workflow. From flexible payment disbursement to tax compliance and fraud prevention to payment reconciliation, Tipalti can help your company confidently move forward in a shifting business landscape.
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