Stripe vs Payoneer: Differences and Which One Should You Choose

As a freelancer, entrepreneur or business owner with global clients and customers, utilizing the right payment platform that meets up with your business needs is vital. Two of the most popular payment processing platforms are Stripe and Payoneer. While both have been used by several customers from many parts of the world, it is important to understand their unique features, services offered, and their major differences before selecting one for your business. 

In this guide you will get to understand how Stripe and Payoneer payment platform works, what they offer, the differences between the two and which one to choose for your business. 

What is Stripe?

Stripe is a payment processing platform that allows small and big business owners to make and receive payments across several countries. The payment platform doesn’t only cater for online transactions, but can be used for in-person payments. With Stripe, businesses can receive payments through credit and debit cards, digital wallets, ACH transfers and many more. 

Stripe remains one of the most sophisticated payment platforms, with its ability to be integrated with e-commerce platforms and its powerful APIs. While Stripe can be utilized by different types and sizes of businesses, it would most times need the services of developers to properly use the integration and customization options of the platform. 

The platform also generally processes and transfers payment with speed and you could expect a payout period of about 1-6 days, depending on the country you are in. Beyond that, Stripe also allows you to properly manage your online finance by allowing you to monitor funds. As you’d expect the platform has also been used by many big companies across the world including Amazon.

Features of Stripe

Here are some of the basic and unique features of using Stripe. 

1. Valuable for Third Party Integration

With Stripe you can make integration with several other platforms, software and systems. Stripe basically allows you to integrate with a third party across varying industries. With it, you will be able to effortlessly manage your financial and business transactions within other systems. Popular e-commerce platforms where Stripe has been integrated include WordPress, WooCommerce, Magento, etc. With a few setups and the available plugin, you will be able to successfully carry out the integration procedure.

2. Access to Varying Account Type

With Stripe, you can open several types of accounts that suit your business needs. While many businesses out there use the checking account for their day-to-day business transactions, you are also allowed to open a money market account. With it, you will be able to earn interest on every deposit made. 

3. Several Transfer methods

With Stripe, you can decide on the type of transfer method you wish to use. You can do wire transfers, ACH transfers, and many more. With that, you have total control over how outbound payments are done. You also have the chance to set up permissions for making and receiving payments from one business account to the other.

4. Management of financial activities

Stripe is a highly inclusive financial platform that allows you to manage and monitor your business transactions. With it, you will be able to track your account balance and financial activities carried out from time to time. Not only that, you will also be able to manage and track every balance on each connected account. With the highly valuable tools, you will be able to do all of these in one place. There is also an inbound and outbound cash flow feature that allows you to monitor and manage the source of every fund, like deposits and payouts. 

5. Compliance and Security

Stripe, as a payment platform, values compliance and security. With it, you can rest assured that your business data security is certain. The platform particularly makes use of advanced security features like built-in KYC that ensure utmost security and compliance with financial rules and regulations.

6. Other miscellaneous features

You would also find some other features, including the ability to create and use virtual cards on this platform. This you would be able to use for several online payments. You can also expect a lesser payment processing time compared to many other payment processors. Even if you are a small business owner, you can rest assured that the payment platform will meet up with your business needs as you grow. As such, the payment processor isn’t only suitable for small and medium-scale businesses, but also perfect for large-scale purposes.

Pros and Cons of Using Stripe

Pros

• Stripe has a reporting feature that allows businesses to keep track of their financial transactions and dealings.
• Primarily been used to integrate with several e-commerce platforms and many other online platforms
• Has many amazing developer tools that allow for integration and customization.
• Stripe ensures bill payments are successful by retrying up to 3 times when a customer's first attempt fails.

Cons

• It is quite expensive and might not be suitable if on a tight budget.
• No phone calls for customer support
• Payment processing time could sometimes take longer.

What is a Payoneer?

Payoneer, on the other hand, is also a payment platform that allows businesses, freelancers, entrepreneurs, etc. to send and receive payment across several countries. When we talk about international payments, Payoneer is one of the best banking platforms to utilize as it allows businesses to send and receive payments across several countries and in many currencies. 

With it, you will be able to receive payments directly into your local bank account, withdraw cash through ATM units, and utilize virtual cards for online transactions. Beyond that, you will be able to accept payments from more than 190 countries and with over 70 currencies. Payoneer has been used and trusted by many big companies including Airbnb, Fiverr, Google, eBay, VISA and many more. 

Whether you own an online marketplace or you’re a freelancer, looking forward to ease all cross-border payments, Payoneer is a banking platform to use. It also has user and mobile-friendly software that allows you to manage your financial transactions on the go. While there are no subscription fees for using or opening an account with Payoneer, you can be charged a few rates for some types of transactions. However, all of these are done with transparency.

Features of Payoneer

Here are some of the important features you’ll get from using Payoneer.

1. Ability to easily send payments

With a Payoneer account, you can easily send money to other Payoneer users without having to worry about charges or fees. In fact, you are allowed to make batch payments of about 200 at a go. Beyond that, you can also send payments to more than 200 countries and typically payment processing is usually successful within one to two working days.

You can also send payments to suppliers, partners, contractors, etc. with the use of a credit card, ACH transfer, wire transfer, etc. 

2. Easy Finance management

With the Payoneer account, you will be able to manage your funds without stress. When you receive payments in several currencies, the system can easily help you convert the funds to your preferred currency. This way you will be able to manage your funds in just one currency even when you’re dealing with many customers from several countries. 

3. Mobile App

With a mobile app, you have the chance to manage your funds at a go. With the app, you will be able to use several features that allow you to make and receive payments. Beyond that, you will be able to track and manage every incoming and outgoing fund. Also, you can keep an eye on your account balance, set up the security features and change the settings whenever need be. Overall, you will be able to manage your Payoneer account with just an app.

4. Ability to receive payments

Also, as you can send payment through Payoneer and can receive payments through many methods. You will be able to request payment globally from clients and also they can use several ways to pay you. If you are specifically a business owner utilizing an online marketplace, you can maximise Payoneer to receive payments in many currencies. Online marketplaces like Upwork, Fiverr, and Airbnb are some platforms where you can easily utilize Payoneer. Once you have received funds into your Payoneer account, you are also allowed to use the ATM unit to withdraw it without incurring any extra charge.

5. Eases Online marketplace transactions

With Payoneer, carrying out transactions or owning a store in an online marketplace like Amazon, eBay and others becomes much easier as you don’t have to worry about payment means. With it, you would be able to use this global online marketplace and enjoy convenient stress-free payment methods which are paid directly into your Payoneer account.

6. Availability of Payoneer prepaid cards.

With Payoneer, you can apply and get a MasterCard card either virtual or physical. This card can basically be connected to any 4 different currencies of the user's account. With this type of card, you can make payments online or in-store with currencies like USD, GBP, CAD, etc. Also, you can apply to get more than one virtual card with Payoneer.

Pros and Cons of Using Payoneer

Pros

1. Payoneer offers a low fee transaction charge. Some transactions can also be completed without incurring any fee.
2. Generally easy to set up an account and no account set up fee.
3. Ability to make and receive payments in several currencies.
4. Has many customer support means including phone calls and also supports several languages.

Cons

1. There are no in-person payments1.
2. Debit card comes with charges

Differences between Stripe and Payoneer

Although Stripe and Payoneer are payment platforms that allow you to send and receive payments globally, both are still different in a number of ways. Now let's see the differences between them. 

Which One Should You Choose

While Stripe and Payoneer offer many amazing features, your choice should be dependent on your business needs, business location, customers or clients involved, business or online marketplace and many more. You should choose Payoneer if.

1. You own an international business and deal with different clients from diverse parts of the world. If you’re a freelancer or a small business owner, you should consider using Payoneer.
2. You are consistently involved in international transactions from time to time and considering a low fee rate for your transactions.
3. You require an extra payment method, together with other payment solutions.

On the other hand, you should consider using Stripe if

1. Your clients or customers are located in the US and other developed countries of the world.
2. You’re considering a payment method with maximum data security.
3. You also require a highly customized virtual payment platform.

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Conclusion

While Stripe and Payoneer are both excellent payment methods, putting into consideration your business needs, the customer base you deal with, payment processing timeframe, other available services offered and many more factors would be essential in making the best decision.