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Read this post to learn more about borderless™ and Payoneer, and how these two payment platforms compare.
The Online Payment Landscape: borderless™ and Payoneer
With so many payment processors available, it can be difficult to decide which one is best for your business.
The ongoing coronavirus pandemic has drastically increased the volume of e-commerce sales, making it paramount for businesses and individuals alike to send and receive business-related payments as simply and cost-efficiently as possible.
borderless™ and Payoneer were developed with the intent of doing just that, enabling businesses to process these payments on both a local and international level.
With the opportunity to save both time and money, it is in every business’s best interest to choose the right payment processor. But how do you decide which one of these processors is best suited for your business?
In this blog, we will examine how borderless™ and Payoneer compare, specifically in regard to pricing, bank transfers, in-person payment options, hidden fees, and global payouts.
What exactly do borderless™ and Payoneer do?
borderless™ is a global payment solution making business payments simple, affordable and transparent. We have a global infrastructure that connects to local payment rails (i.e. global ACH) facilitating money transfers directly between bank accounts for both individuals and businesses. It is an alternative payment method (APM) to credit cards and bank wires.
Payoneer is an online payment processor that allows businesses to collect these payments while also providing customers the option to pay with an e-check, credit card, or bank transfer (local payments only) through the platform. Furthermore, account holders are offered the Payoneer Mastercard which serves as a prepaid debit card and can be used wherever Mastercard is accepted, both in-person and online.
Who uses borderless™ and Payoneer and why?
borderless™ and Payoneer are versatile payment processors that allow users to complete a wide array of tasks. A few of the most popular uses include:
- Making International Payments
- Collecting Global Payments
- B2B Payments
- Sending Mass Payouts
- Billing Clients
Offering services that facilitate transactions for merchants and payors alike, it becomes clear why both platforms appeal to individuals as well as businesses.
So now that you understand the basics of the services that borderless™ and Payoneer offer, let’s discuss how the companies and their products compare.
What are some common, useful features of both platforms?
1. International Support
With potential customers all around the world, businesses are striving to ensure that they can not only reach them, but also process their payments.
Fortunately, both borderless™ and Payoneer make this a top priority so that businesses can process local, as well as, international payments with confidence.
Currently supporting more than 200 countries and 150 currencies, Payoneer has drastically expanded the scope that businesses can accept payments from.
Similarly, borderless™ has also established a solid international payment support system as its services are currently offered in over 120+ countries.
2. Types of Accounts
Both borderless™ and Payoneer offer the ability to create business and personal accounts, unlike other payment processors like Stripe, which only allow business accounts.
This is a major advantage to both companies’ service offerings as, with the rise of e-commerce sales, it is becoming essential for businesses to be able to accept consumer payments online through C2B transactions.
It should be noted that although Payoneer platforms allows creation of personal accounts, it does not allow for peer-to-peer (P2P) transfers. borderless™ on the other hand does, with free international payments for P2P transfers involving FX.
In addition, creating a business or personal account with borderless™ and Payoneer is simple and quick– with borderless™, it takes only two minutes!
3. Mass Payouts
Handling bills can be a huge hassle for larger companies that process each payment manually. Luckily, both borderless™ and Payoneer offer a solution to this problem!
Using their mass payout services, your business could automate its billing to send out hundreds of payments in a few clicks.
This feature can be implemented either via API or CSV upload so that businesses of all sizes can begin saving time and forget about spending hours on bill handling.
Restrictions on mass payouts exist for Payoneer. They only permit businesses paying $30,000 a month to international beneficiaries to enroll in the program. borderless allows for businesses of all sizes to utilize our CSV upload or Groups Feature.
5 Key Differences
A major differentiator between borderless™ and Payoneer is the difference in processing costs, both locally and internationally. By paying and receiving with your bank, borderless™ allows you to avoid many unnecessary fees that Payoneer does not, saving you money.
For local payments, If both the payor and seller in a transaction have a registered Payoneer account, and the involved currency is USD, EUR, GBP, or JPY, then neither party pays any fees for the transfer. Otherwise, transactions incur a costly 3% fee for credit cards and 1% for ACH debit in the US which can be paid by either payor or seller.
On the other hand, borderless™ charges only 1% plus a flat fee of $0.30, with capped fees of $50. Moreover, for B2B transactions, it is 0.1% with a capped fee of $15 USD.
For example, for a $5,000 business payment, the processing fee would be $150.30 using Payoneer, whereas using borderless™, the fee would only be $15. That is a 90% cost-savings, allowing you to keep more of your hard-earned money!
Similarly to local payments, international payments are also fee-free for certain currencies if both parties involved have a Payoneer account. However, if this is not the case, fees once again come into play, costing you money.
The 3% processing fee for local payments also applies to international payments as well and can be paid by either seller or payor. There is also a conversion fee of 0.5% and could be as high as 3.5% for exotic currencies, resulting in an overall 3.5% – 6.5% processing fee. Moreover, Payoneer’s currency exchange rate can be up to 2% above the daily mid-market rate (the average of the price at which people are buying and selling the currency).
In contrast, borderless™ charges just 2% plus a flat fee of $0.30 per transaction, with a capped fee of $30USD or equivalent, and, unlike Payoneer, the currency conversion is included, with a better exchange rate close to the mid-market rate. For businesses who do over 50 payments per month, a flat fee pricing as low as $3 USD per payment can apply.
With these capped fees and low tiered pricing, borderless™ is the obvious choice for both B2C and B2B e-commerce. Check out our calculator tool that shows you how much money you can save by using borderless™!
In addition, we also offer cashback program for businesses that process over $1M annually.
2. Bank Transfer Fees & Speed
Once receiving your payment, you may want to transfer your funds to your bank account, where you trust your money the most. To do so, Payoneer not only requires 2-5 business days to complete the process, but also charges bank processing fees, landing fees, and intermediary fees that can add up very quickly. Furthermore, flat fees are charged for withdrawing money to your bank account while also subjecting you to high exchange rates.
We understand the inconvenience of having to pay for access to your own money, so borderless™ completely avoids these fees by directly transferring money into your bank account in 0-3 business days with absolutely no fees, saving you time and money. We have local payment rails in over 80+ countries avoiding wire fees and have real-time bank payments in 45+ countries.
3. Customer Support & 5 Star Ratings
Another advantage that borderless™ holds over Payoneer is our amazing customer support team that is highly rated on Capterra. We offer 24/7 support via email and offer live chat as well as phone support. We also provide dedicated account managers to build a relationship with making your business familiar to them.
Payoneer on the other hand has had poor reviews on customer support on Tustpilot with star rating of 1.4 out of 5 – ouch! learn more here.
4. Hidden Fees
As bad as fees are, hidden fees are even worse and is an area where borderless™ and Payoneer greatly differ.
Payoneer may charge an additional 2% if payments are executed in mass payouts. In addition, the cross-border fee, similar to the currency conversion fee, is a Payoneer fee that often goes unnoticed but can cost your business an extraordinary amount. The fee is incurred when the Payoneer debit card associated with an account is used to make an international payment where the country that issued the card and the country receiving the payment are different, adding a 3.5% fee to the transaction.
Additionally, there are multiple monthly maintenance fees associated with the Payoneer Mastercard that range from $1-$3, depending on transaction volume. Charges are also implemented for loading funds to the card as well as withdrawing the funds from ATMs.
With borderless™, there are no hidden or monthly fees. You only pay when you get paid, and accounts are free to create and maintain.
We don’t charge extra fees because we believe that business owners shouldn’t need to worry about extra operational costs. Our mission is to empower dreamers to follow opportunity anywhere it takes them.
5. E-Commerce & Security
Both borderless™ and Payoneer allow companies to engage in e-commerce without creating a platform-specific account, but the payment process looks quite different between processors and highlights how much more securely borderless™ manages your money.
When payors are sent payment requests from Payoneer users, they must pay with either credit cards, which requires input of card information, or ACH Bank debit, which requires sensitive bank account information, and are subjected to a maximum payment amount of $15,000.
At borderless™, we don’t believe in sacrificing security for ease of use. That’s why we only ask customers to input their bank account credentials once during account creation to keep your money as safe as possible and allow payments up to $500,000. We also allow individuals to pay without signing up. Watch a demo of how it works here.
We never have access to your or your customers’ account or routing numbers, so you can be confident that your money is safe in your account and being transferred securely.
Overall, this means greater security, as merchants never have access to your private information. And for B2B payments, businesses do not have to share their banking information with their clients, making the process more private and secure.
Although borderless™ and Payoneer are payment processors that offer similar services to your company and share similar features, there are key areas in which borderless™ has proven to be superior to Payoneer as discussed throughout this blog post: Pricing, Speed, Customer Support
One final consideration to take into account is that you are not restricted to solely using borderless™ or Payoneer as your payment processor of choice. In fact, there can be many benefits in using both in conjunction with one another to serve both your credit-card focused and bank payment oriented audiences.
borderless™ is designed by dreamers, for dreamers. That’s why we care about what matters most to your company: your bottom line, ease of use and customer service.
Contact our payments experts to review your business case and see how much we can save you.
Ready to get ahead? Create your borderless™ account today and experience global bank payments for yourself (Use code: BORDERLESS20). Time for peace of mind with simple, cost-effective, and secure local and international payments.