Why Money Matters with Payoneer
As the most-awaited freelancing event of the year comes nearer each day, we are pleased to have been given the chance to get to know our sponsors deeper. Freelancing Forum Philippines, now on Year 2, is looking forward to have the community widen up its network. Freelancers of the same passion and skills; and companies whose platforms have created an impact on our freelancing journey (and success!) all in one roof. Amazing!
For this post, we will be digging deeper into Payoneer, a well known cross-border payment platform in the industry. Read on as Miguel Warren, Payoneer Country Manager talks about the pros of using Payoneer. See them live at the very first Philippine Job Fair for Freelancers.
1. When Payoneer was launched in 2005, was the intention to directly compete with Paypal? What’s the difference between the two?
Payoneer is focused primarily on business to business (B2B) payments. When it was launched, it aimed to provide a convenient alternative to traditional cross border payments, which tend to be cumbersome and expensive for small businesses. Payoneer offered a MasterCard debit card that allowed the user to easily access funds received from cross border business payments. The service has since evolved to enable these small businesses to receive payments in many ways, and access the funds in many ways, all while maintaining a competitive and transparent fee structure.
2. How does Payoneer differ from the other online payment systems?
Payoneer prides itself in empowering small businesses receive payments at a low cost. We differentiate ourselves by offering a comprehensive set of solutions to address the growing opportunities for cross border business globally. Whether this is through eCommerce marketplaces like Amazon, Lazada, and Wish, or it is through freelance platforms like Upwork, Freelancer.com and Fiverr, we offer lower fees and a higher foreign exchange. For those with direct international clients, Payoneer offers a billing service that allows small businesses to request payment and get paid via credit cards or echecks. We also offer an innovative global receiving account in USD, Euro, GBP, and Yen. This is like having a bank account abroad, but without a minimum maintaining balance! With this account, clients can conveniently pay in their local currency, making the process easier and cheaper for both sides.
3. How can Payoneer support the essential needs of freelancers when it comes to money matters?
Payoneer is cognizant of the fact that for Filipino freelancers, every peso counts! Many freelance professionals don’t focus on foreign exchange rates and the equivalent local currency that they receive from online payment providers. This is actually a form of fees, and can make a huge difference as the amounts involved increase. In a recent study done by a company called Let’s Talk Payments entitled “Unveiling The True Cost of Cross-Border B2B Payments”, it was found that on a business payment of USD 1,000 from the US to the Philippines, freelancers and small businesses can save up to PHP 2,552.70 if they use Payoneer. That’s the cost of about 17 premium Starbucks Coffees! And that’s only on USD 1,000! What if the amount was USD 5,000? That’s PHP 12,763.85, which is the equivalent of a monthly car loan payment! And what if the amount was USD 10,000? That’s PHP 25,527.70, or the equivalent of a monthly mortgage payment!
Payoneer aims to create more awareness of how to maximize income from international sources by helping freelancers understand the impact of foreign exchange and fees on their cross border earnings. We look forward to getting closer to the local community by creating more content that will be of interest to Filipino freelancers, and organizing meet-ups, workshops and large scale events to encourage digital entrepreneurs and small businesses to go global!
4. Are there any tips and tricks to make the most out of Payoneer?
Great question! To make the most of Payoneer, I would suggest the following:
- Link your Payoneer account to your local bank. This is the most cost-effective way to access the funds that you receive from foreign clients.
- If you choose to avail of a Payoneer debit card, use it online and instore.
- Encourage your contractors, freelancers, and suppliers to sign up for Payoneer so you can make use of our free make a payment feature! This will enable you to pay others with the funds in your Payoneer account conveniently and at no cost!
5. From Freelancing PH’s latest experiment, Payoneer stood out as the most convenient online payment method. What was the secret behind it?
Thank you for this! Our mission is to empower global commerce with our innovative cross-border payments platform. We enable millions of businesses and professionals from more than 200 countries to grow globally by facilitating seamless international payments. As such, we are very focused on convenience, cost and flexibility in the provision of our secure and low-cost payment solutions.
6. For employers and business owners, what is the edge of using Payoneer as a payment method?
Payoneer is a great option for small businesses that need to receive international payments. Firstly, we can greatly reduce the cost of receiving these international payments…by up to 58%! Secondly, it is very convenient for both the Payer and the Payee. For the Payer (client), there is no need to register for Payoneer. They will only need to make a local payment (in their currency) instead of an international wire transfer. This greatly simplifies the process to send an international payment. For the Payee (service provider or freelancer), Payoneer offers more ways to receive payments, via credit cards, e-checks, or our innovative global receiving accounts. Lastly, Payoneer allows businesses to access funds in many ways once they have been received. These include doing a local bank withdrawal, using the optional Payoneer Debit Card to either withdraw cash from ATMs or make purchases online and instore. The business can also choose to pay other freelancers or contractors free of charge through Payoneer’s Make A Payment feature.