Payoneer vs Remitly: Which Platform Wins for Global Transfers?

Whether you are running a business or just working outside India, managing international payments must be just as important to you as maintaining your profit margins or receiving your next paycheck. Naturally, you’ve probably spent time combing through multiple payment platforms, and names like Payoneer and Remitly must have already crossed your radar by now.

If you are confused between these platforms and can’t come to a decision, we’ve got you covered. Here, we cover what Payoneer and Remitly have to offer, how they stack up for different use cases, and whether there’s a smarter alternative worth considering.

Payoneer is a fintech company that provides payment solutions for small and medium-sized businesses all over the world. Established in 2005, it is known for its wide global reach through its multi-currency accounts and transaction processing in more than 190 countries.

Remitly, on the other hand, plays in a different league. It’s built more for personal use, helping individuals send money to friends and family abroad. Operating in over 170 countries, Remitly’s mobile-first platform makes the process quick and flexible, letting recipients choose how they get their money – straight into their bank account, via cash pickup, or through mobile wallets.

When these two platforms are compared based on their core services, Payoneer stands out for supporting SMBs, entrepreneurs, online sellers, and freelancers with their business payouts and cross-border payments.

At the same time, Remitly focuses on solving the remittance problems people face while sending money to their relatives and family living in other countries.

Here’s what a Payoneer business account offers:

• Local receiving accounts so your clients can pay in their own currency.
• Marketplace integration to help online sellers receive funds.
• Mass payouts that allow you to make up to 1,000 payments in a batch.
• Payments through several methods, including local bank transfers, credit or debit cards, or ACH bank debit.
• Features for billing and invoicing your clients and digital FIRA issuance.
• Enterprise-grade security standards.

Now, let’s have a look at what Remitly has to offer:

• Two transfer options: Express for instant transfers and Economy, which takes 1-3 business days but with lower fees.
• Multiple ways to deliver your funds, such as bank deposit, cash pickup, mobile wallets, and home delivery.
• Different payment options like bank account, debit/credit card, or digital wallet.
• Real-time tracking of funds by both sender and receiver.
• Encryption and authentication to keep transactions secure.

One of the most important things you need to consider before committing to a payment platform is the fees it charges. If it doesn’t align with your budgetary expectations, you might be in for a surprise when all those transaction fees start adding up. Even small charges can make a big dent in your overall earnings over time. With that in mind, let’s have a look at the fees and exchange rates of both Payoneer and Remitly:

Payoneer

1. Receiving funds

• If you receive money from a Payoneer account, you won’t be charged at all.
• If a client pays you with their credit card, you’ll be charged 3.2%+ $0.49 on the transaction amount.
• Transfers made through ACH bank debits, which are available only in the USA, will cost you 1%.
• If you receive payments via local receiving accounts, you’ll incur no Payoneer fees, but a 1% fee or fixed fee will be charged if the payment is in USD.

2. Withdrawing funds

Once the payment is received in your Payoneer business account, your funds will be automatically transferred into your local bank account within 2 days. But for withdrawing the funds, you’ll be charged up to 3% of the transaction amount.

3. Account maintenance

While opening your Payoneer account with access to 10 currencies is free, the platform charges a $29.95 annual account fee to users who receive less than $2,000 USD or its equivalent in one year.

4. Exchange rates

Exchange rates play a major role in your cross-border payments. A very high foreign exchange rate can quickly eat into your profits even when the transaction fee is low.

Payoneer charges a 3% forex markup when you exchange the received currency into your local currency. For instance, if you receive $1,000 from a client in the US and the forex rate is ₹88 per dollar, you won’t get the full ₹88,000. Instead, after the 3% markup, you’ll effectively receive around ₹85,360. That’s nearly ₹2,640 lost just in currency conversion fees with Payoneer.

Remitly

1. Transfer fee

The charges for Remitly are not that complex. There is no account maintenance fee, and you won’t be charged for receiving payments. There are also no charges applied when you withdraw funds into a local bank account that’s supported by Remitly.

However, Remitly does charge you for sending remittances. These charges differ on the basis of the transaction amount, destination country, transfer options, and the payment method. Express transfers have high fees compared to Economy.

If you are sending money to India from the USA and the amount is less than $1000, the Remitly India rate will be $3.99 per transfer. But there is no transfer fee for transfers of $1,000 or more.

2. Exchange rate

Remitly applies a currency conversion fee that is included in the exchange rate offered. The exchange rate markup typically ranges between 0.4% and 1.4% over the mid-market rate. This markup means recipients often receive less INR than with transfers using true mid-market rates, and it represents a major chunk of Remitly's cost.

If you send $1000 from the USA to India, and the mid-market rate is ₹88 per USD, and let’s say Remitly offers a 1.2% markup. This will make the Remitly exchange rate to India ₹86.94. That means your recipient would get ₹86,940 instead of ₹88,000.

While that ₹1,060 difference may not seem huge for one transfer, it adds up significantly if you make regular payments, actually turning the exchange rate margin into a hidden fee.

Both Payoneer and Remitly are known for their global presence. Still, they differ slightly when it comes to their geographic reach and transaction currencies. 

Payoneer offers transactions in almost all major global currencies like USD, EUR, GBP, CAD, AUD, and JPY. It actually covers more than 70 currencies and is available in over 190 countries. Remitly, in contrast, allows you to send remittances in over 100 currencies and operates in more than 170 countries. 

Let’s take a look at the speed, user experience, and access of both of these platforms with the help of this table.

The most glaring difference between Payoneer and Remitly is their users. Payoneer is a platform that focuses on the needs of businesses to easily receive global transfers. Remitly, on the other hand, targets individuals looking to send remittances to their family and friends. Let’s get into the details.

Payoneer’s use case

1. Businesses: Payoneer works best for SMBs and budding entrepreneurs who have to make global payments to customers and suppliers and are looking to expand their global reach.

2. Freelancers: It also helps freelancers and individual contractors working with international clients or marketplaces (Upwork, Fiverr) with easy invoicing so they can get paid in global currencies without complex FX hassles.

3. Online sellers: Provides tools to online sellers to receive payments from global marketplaces and also make payments to their suppliers.

Remitly’s use case

Remitly is best suited for people who want to send money in a fast, easy, and secure way to their family and friends internationally. It especially provides an ideal platform for workers living abroad who want to send money back to their home countries, with tracking and good delivery guarantees.

Although Remitly Business does offer business payment solutions to US-based companies, they are mostly basic and features like mass payouts or marketplace integrations are missing.

Xflow is a modern payment infrastructure platform that helps businesses of all sizes effortlessly receive payments from abroad. Here’s how Xflow stands out when compared to Payoneer and Remitly:

• Faster settlement times, with transfers getting settled within 1 business day.
• No hidden fees and offers mid-market FX rate with zero markup. This means you get your payment based on the real market exchange rate without paying any additional amount.
• Automatic issuance of eFIRA within 24 hours of transactions.
• Cutting-edge features like payment links and white-label APIs.
• Seamless integrations with popular marketplaces and your favorite accounting platforms.
• Tools like FX AI Analyst that offer valuable insights on exchange rates, so you can convert smartly.
• Limitless transactions with payments of more than $10,000 in a single invoice with full compliance.
• Better FX management with the ability to freeze FX rates for 45 days for complete transparency and withdrawing funds at favourable rates.
• Excellent customer support with no delays or queues.

To save massively on your next international transaction, switch to Xflow. Sign up now!

The tables below summarize the benefits and limitations of both platforms.

Payoneer Pros and Cons

Remitly Pros and Cons

Now that we have discussed some of the most popular payment platforms available on the market, the next step is to evaluate them through the lens of your business – your goals, your workflow, and your budget.

Compare the features each platform offers and see how well they align with what you actually need. And don’t forget, pricing matters a lot; those fees can slowly eat into your profits if you’re not careful. Finally, choose a platform that fits your current requirements and offers a range of features to support your growth in the long run.

Xflow is one such platform that strikes that ideal balance between functionality and affordability, ensuring your international transactions stay smooth, transparent, and hassle-free. To learn more about Xflow, reach out to us now!

Related reading

1. Payoneer Charges in India

2. Wise vs Payoneer: which is better?