Payment Gateway became much more critical when an increase in awareness of Internet and Globalization.

In this article, we will be comparing a two-decade-long rivalry between PayPal and Payoneer. Interestingly, we will also be talking about similarities between the two payment gateway option.

Here are the differences as follows –


PayPal was started back in 1998. They were the first online payment services available to the masses. Back then it was used to be known as Confinity which joined its hands with in 2001. was an online banking company which was developed by Elon Musk. Since 2002 they have been operating with the name PayPal and is one of the most widely used payment systems globally. PayPal has been used by corporates and individuals to process international payments and another kind of online transactions including online shopping. In 2013 PayPal crossed a sum of 152 million active accounts.

Since 2013 PayPal is working to increase its operating area and is introducing its services to more and more countries. The user base for both personal use and corporate use is growing on PayPal day by day. PayPal is available to be used freely without any registration while opening the account is utter easy and free of charge. The charges for PayPal varies ranging from 0.3% to 7.4% depending on various scenarios. If you want to know specific paypal charges when you send payment to someone or going to receive payment from someone, Paypal Fee Calculator does an easy job. PayPal also allows the sender to choose if they want to charge the money to the receiver or to themselves which is one of the best features of PayPal.


They are latecomers in the party, and they started their journey in 2005. Having their headquarters in New York, they got hold of the former president of Visa and former CEO of SWIFT in their board members. They are the service provider for MasterCard which makes it the most prominent company offering payment services. They have their service widespread in over 200 countries, and they transit in around 100 currencies. They provide money transfer and e-commerce services. The company also operates a referral program where one can receive around 25$ each time they refer.

They operate on two different types of bank account, one of which is free with no annual charges while another one has a prepaid Payoneer MasterCard which charges 30$ yearly fees. They offer a wide range of packages to different businesses so they can use Payoneer services without any issue. They cost 3$ for a bank transfer while 15$ for a USB SWIFT transfer which is quite a lot.

Feature Comparison

Both the companies offer plenty of features, but there are a few who are exclusive to either of them. For PayPal, it is easy to accept and do transactions with PayPal user, and they accept Visa, MasterCard, and American Express Cards. They also have Virtual Payments and can receive payments in more than 25 currencies in over 202 countries. For Payoneer, they have options for Single Payout and even Mass Payout where you can make an invoice of different peoples and pay at a single click. The fund’s withdrawal feature and multi-currency support feature is the best where you will not be converting the amount in the local currency if you have to transact the same amount to anyone else in the same currency which will save lots of conversion amount in your account.

Now that we have witnessed specific differences between two global giants in payment gateway space, we will look into features that are similar in both payment gateway parties.

Clearing Transactions

The means delineated above are rehashed with an end goal to “clear” the authorization through the fulfillment of the transaction. Notwithstanding, the clearing is just activated once the merchant has finished the transaction (transporting the order). The issuing bank changes the “auth-hold” to a charge, permitting a “settlement” with the seller’s acquiring bank. The processor is then depended upon to settle the more significant part of the merchant’s affirmed authorizations with the acquiring bank toward the day’s end.

Other similar Payment Gateway Functions

Payment gateways likewise screen orders with a myriad of accommodating devices. This screening process sifts through however much misrepresentation as could reasonably be expected. Cases of passage misrepresentation location instruments include:

Conveyance address check

AVS checks

PC fingerprinting innovation,

Velocity design analysis

Character transforming recognition


Final Words –

In this article, we have talked about differences and similarities between two-decade based global payment gateway giant PayPal and Payoneer.  One of the significant drawbacks of the above system is large charge and long processing time respectively.

After comparing the two companies that were based on existing customers ratings and reviews,  we have found out that Payoneer user’s experience has been better even though the processing time is high but the fees are meager.

Thank you for reading the article, and let us know if we have missed out on anything via the comments section. Thank you for supporting, and the listing is no way sponsored.

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