If you’re looking for a payment gateway, it seems like there are a million options to choose from. It can get confusing and overwhelming, rifling through the features and pricing of each one. When it comes to Payoneer vs. Skrill, there are some definitive differences that set each platform apart.
So, which is better, Skrill or Payoneer?
Skrill allows a business to make and receive money transfers to digital wallets. It is also a payment gateway for e-commerce merchants. Payoneer specializes in freelancers, service providers, affiliates, and e-commerce seller payments.
In this article, we’ll look at what each system offers, the pros and cons, and which pricing model works best for your business.
What is Payoneer?
Payoneer is a financial services brand for domestic and international money transfers, digital payments, and working capital. Established in 2005, the company is located in New York and supports over 200 countries with 150 local currencies. Payoneer is also a worldwide member service provider of Mastercard.
In the Payoneer system, users can track the account balance, payments, and full transaction history, including transaction fees and foreign currency amounts.
The SaaS platform boasts 21 offices around the globe and supports more than 35 languages. Over 5 million customers around the world use Payoneer every day to send and receive payments.
Companies that use Payoneer include Google, Amazon, Adobe, eBay, Airbnb, Rakuten, Upwork, and Fiverr.
What Does Payoneer Do?
Payoneer gives you the ability to send and receive funds domestically and internationally (including a local bank transfer), as well as directly withdraw funds with a debit card.
Businesses can send direct payment requests or invoices to customers, who then have the option to pay online via a credit card or local bank account.
The payment platform immediately connects companies with customers for e-commerce and online payments and supports USD, EUR, GBP, CAD, AUD, JPY, and CNH currencies.
PayPal, Stripe, Skrill, and other digital wallets work with Payoneer payouts so users can receive payments from eWallets.
Pros of Payoneer
- Unique, multi-currency bank accounts to facilitate payments in local currency
- Transfers are free between Payoneer account holders (4,000+ active users)
- Superb customer support with free resources, books, surveys, and a help center
- Reasonable exchange rates that are better than most platforms
- Setup has been simplified, with less data required to receive payments
Cons of Payoneer
- Payoneer is not established with a bank and does not hold the funds (they must be transferred to yours)
- Fees tend to run high unless both parties have a Payoneer account
- The mobile app can be improved by adding better analytics and bank account data
What is Skrill?
Established in 2001, Skrill is an international online payments and money transfer company that offers secure transfers directly to a bank account or Skrill wallet without international transfer fees. Since its launch, Skrill has expanded to more than 120 countries, with the digital wallet offered in 40 different currencies.
Skrill has the same parent company (PaySafe Group) as its digital wallet competitor, NETELLER, and is headquartered in London. From betting and trading to shopping and gaming, the platform makes managing your money simple.
What Does Skrill Do?
Skrill gives individuals from different countries an easy means to carry out international money transfers. The Skrill Visa Prepaid Card for U.S. users with a Skrill account requires no credit checks or bank accounts.
Sending and receiving online payments through Skrill is quick and easy, using email accounts. Bank transfers are delivered instantly or within 24-72 hours after receiving funds from the sender(with timing notification from Skrill). Any failed payment is refunded back to the sender’s card or bank account ASAP.
There are also multi-currency accounts available for VIP Silver members and above. You can also sign up for a loyalty program called Knect.
Pros of Skrill
- Skrill provides global transaction security with an anti-fraud team and other security measures
- Money transfers abroad are free with no transfer fee (banks may charge fees)
- The digital wallet can hold and transact funds in 40+ currencies
- There’s a wide range of options to accept payments (bank transfers, cards, wallets, cash payments, etc.)
- Integration with popular eCommerce platforms and shopping carts like Shopify, Wix, Magento, and WooCommerce
Cons of Skrill
- Skrill doesn’t permit bank transfers to business bank accounts
- There is a 2% fee for domestic money transfers
- Issues with the verification process, including repeating it with no succes
| Payoneer | Skrill | Tipalti | |
|---|---|---|---|
| Receiving Cost | It’s free from another Payoneer account or 1% via ACH and 3% via credit card. | Wire transfer is free in the US and SWIFT is £4.76 in the UK. | 50+ 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. | US pays 0% UK pays 1% | 50+ international payment methods – cost varies |
| Speed | 1-2 days | 2-3 days. | 0-2 days |
| Mobile App | Yes | Yes | No |
| Currencies | 150 | 40 | 120 |
| Debit Card | Mastercard ($29.95/yr) | Visa prepaid | No |
| International Payments | Payoneer Local Currency Accounts in 200 countries. | Pays to over 200 countries. | Pays to 196 countries. |
| Taxes | Has a tax agreement with the IRS. | No features. | There is built-in tax and VAT compliance. |
| Mass Payments | Automated batch-pay up to 200 at a time. | Mass payments through Skrill API. | Global mass payables automation solution |
| Business Capital | Merchant cash advance through Amazon and Walmart, up to $750,000. | No. | Not yet |
Skrill pricing is fairly transparent and listed on their website, whereas Payoneer fee schedules are not. To non-registered users, this can lead to some confusion. Not to mention, when it comes to international payments, specific transaction fees can vary from country to country.
Fees for most global payment services will vary based on factors like geography, transaction type, speed, etc. The following are a few standards for comparing Payoneer vs. Skrill:
Administration Fees
A Skrill and Payoneer account are both free as long as you use them on occasion. After 12 months of inactivity, the account fee for Payoneer is $29.95. Skrill will also apply a fee after 12 months, which is a €5 (or its currency equivalent) fee on your account.
Getting Paid
When using Skrill, wire transfers are free if you’re located in the United States. If you’re in Europe, using SWIFT, there is a £4.76 in the UK. Additional fees apply for receiving money, depending on where you are located.
With Payoneer, if both users have an account, transfers are free. They are also free if you are using your bank account through Payoneer.
In Payoneer, you can send payment requests to clients, giving them the option to pay with a credit card or ACH bank debit. They can also pay via local bank transfer into your receiving accounts. In this case, there is a 3% fee for credit cards and a 1% fee for ACH. For transferring funds to your account, there’s a 2% fee above the mid-market rate
Paying Out
Paying customers directly to their bank account using Payoneer 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 or country. Payoneer customers can also make batch payments up to 200 bank accounts at once with a 2% fee.
Skrill charges up to 2% in fees for domestic transfers. The sender’s bank may also charge a fee for the money transfer. Most transfers, however, are free in the US and cost 1% in the UK.
International Fees
When it comes to exchange rates, the Skrill platform charges a fee of 3.99%, whereas Payoneer users pay a fee of 0.5%, above the interbank exchange rate. Depending on the country, Payoneer adds a currency conversion charge of 2% to 2.75%. You are also subject to Mastercard’s exchange rates if you use it in a non-listed currency.
Prepaid Card
The Payoneer 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. The card can be used at any ATM, but has a maximum daily limit of $2,500. There is also a 1% charge for foreign exchange fees.
Skrill provides a prepaid Visa card for US customers and a Skrill prepaid Mastercard for customers from the EEA. The Visa card is free to use. There is an annual fee for the Skrill Prepaid Mastercard of €10. There is also a withdrawal fee of 1.75%.
Conclusion
When comparing Payoneer vs Skrill, both payment solutions bring something to the table. For most types of payments, Skrill offers more global currencies than Payoneer. Money transfers abroad also have zero transaction fees. Both Payoneer and Skrill are money transfer services that are highly secure and focus on ease of use.
Although Skrill supports Bitcoin as a payment method, Payoneer, does not. For both Skrill and Payoneer, bank fees and currency exchange fees may apply to transactions.
When looking at Skrill vs Payoneer, both software vendors provide a solution for their target markets. There is also a branded app for each solution (for iOS and Android).
To find the right solution for your purchase decisions, you should also consider Tipalti. The smart payables and mass payments software automates the entire AP lifecycle, approvals, and payments process to streamline workflows and save up to 80% of your time.
Tipalti effortlessly provides supplier self-service onboarding, validation, tax compliance, fraud controls, and a reduction in erroneous payments. It’s the perfect alternative to both Payoneer and Skrill, for everyone from a small business to a large enterprise.
