As an African, I can attest that nothing beats the joy of receiving payment in a stronger currency. The world has become a village, and with the gig economy, you can work from anywhere in the world for an employer with a different currency and still receive your money intact.
Business, freelancing, and outsourcing have been revolutionized and made more accessible by this technology. With many players in the international money transfer sphere, it is paramount that you select the right platform that serves your needs. But fear not, for I am here to shed light on some heavyweights in the game: PayPal, Wise (formerly known as TransferWise), Remitly, and Payoneer. So, shall we?
Global money transfers
Wise: Transparency + Global Connectivity
Picture this: a financial platform that not only facilitates international transfers but does so with transparency. Enter Wise, the brainchild of a mission to revolutionize how we navigate cross-border transactions. Boasting a user base exceeding 10 million across 70+ countries, Wise was launched to make international money transfers fair, cheap, and straightforward.
Wise logo
Founded in 2011 in the UK, Wise prides itself on transparency, promising users the mid-market exchange rate without sneaky markups. The result? Lower fees, favorable exchange rates, and empowerment for users sending funds between currencies. It’s like having a financial ally that’s not just in it for the money but for the economic well-being of its users.
Their business model and a 2021 rebrand from TransferWise to Wise have seen them report significant growth since its inception. As of March 2023, the company reported a revenue of £846 million, an operating income of £157.2 million, and a profit of £114.0 million. The company’s total assets were reported to be £11,904 million, with a total equity of £576.9 million.
PayPal: Global Behemoth
For many, PayPal is synonymous with online transactions and the convenience of sending and receiving money with a click. Founded in 1998, PayPal’s global presence spans 190+ countries, boasting a user base of a whopping 325 million. It’s the seasoned player in the field, the household name that promises a “safer, simpler, smarter way to send and receive money online.”
PayPal logo
PayPal operates as a payment processor for online vendors, auction sites, and freelancers, for which it charges a fee. “With great reach comes greater responsibilities and fees” regarding international transfers. Allow me to rephrase that famous quote this one time. PayPal markup ranging from 3.5 – 4% on top of the mid-market rate can leave users questioning the actual cost of their transactions.
Their business model has enabled them to cement their position, and as of 2022, PayPal reported a revenue of US$ 27.52 billion, an operating income of US$3.84 billion, and a net income of US$2.42 billion1. The company’s total assets were reported to be US$78.72 billion, with a total equity of US$20.27 billion.
Payoneer: Solutions for the Global Entrepreneur
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| Payoneer.logo |
Payoneer positions itself as the go-to platform for international and domestic business transactions. The company was founded in 2005 with the vision to democratize access to global commerce for businesses of any size and location. It has since powered the growth of millions of businesses and built a financial platform that connects the world.
With a unique fee structure, Payoneer charges recipients a fixed fee of $31, a departure from the conventional approach of charging companies for payroll transfers. However, there’s a catch: businesses must make at least $30,000 in monthly transfers to Payoneer’s Mass Payout service. The fee structure might give you pause, but for enterprises engaging in substantial monthly transfers, it can be a game-changer. Think of it as a tailored suit in a world of off-the-rack financial solutions.
Remitly: Speed + Security
As of September 2021, Remitly had authorized people in 17 countries to transact electronically in over 75 currencies in 115 countries. Remitly streamlines the transfer process, ensuring it is quick, affordable, and secure. 
Remitly.
Before initiating a transfer, they provide a breakdown of the total cost and expected delivery time, allowing you to make informed decisions. The platform offers flexibility in payment methods, offering options like debit or credit cards. Recipients can receive funds through mobile money or opt for cash pickup at various bank and postal office branches. Additionally, Remitly prioritizes customer support, offering chat, phone, or email assistance.
Remitly’s fees vary based on the amount and destination, ranging from $0 to $15, depending on payment method and country. Three pricing tiers exist: no costs for transfers over $1,000 and a $3.99 fee for amounts less than that. Remitly sets its exchange rate, usually below the mid-market rate. Keep in mind fees may change; always check the latest on the Remitly website or app.
Wise, PayPal, Remitly, and Payoneer Face Off
Exchange Rates: Wise uses the mid-market exchange rate on all its transfers, offering more favorable exchange rates than PayPal. It’s a testament to their commitment to transparency, which resonates with users seeking a straightforward financial experience. Remitly adds a margin of 0.5% to 3.0% above the mid-market exchange rate, depending on the currency pair.
Transfer Times: Payoneer takes the patient approach, with transfers requiring 2-5 business days. Wise often completes transfers within 1-2 business days, balancing speed and reliability. PayPal and Remitly’s Express transfers allow instant transfers, letting users move their funds within minutes.
Fees: The devil is in the details, especially when it comes to costs. Wise’s transparent structure proves more cost-effective for international transfers. Remitly’s transfer fees depend on how much you send and your desired delivery speed. Complexity reigns in the world of PayPal, with varied personal, domestic, and international fees. Payoneer introduces its complexity, requiring a minimum monthly transfer threshold for businesses to unlock its full potential.
Transfers Between Money Transfer Platforms
The ability to move money seamlessly between platforms is paramount in the prevailing financial landscape of multiple income sources. The process, however, isn’t always as straightforward as we’d like. Payoneer and Wise offer the only accessible straight transfer; for Payoneer to Wise, you can add Wise as a bank account, but the reverse is impossible. PayPal to Remitly, Wise, or Payoneer calls for a two-step dance involving withdrawing funds to your bank account before initiating the transfer.
Yet, the processes of these transfers shouldn’t deter you. While additional steps and potential fees may come into play, the ability to move your money between these financial giants opens up a world of possibilities.
Final Thoughts
As a freelancer or business, choosing between PayPal, Payoneer, Wise, and Remitly can be a challenging task, as each platform has its pros and cons:
- Understand your specific needs in terms of transaction volume, frequency, speed, and destination countries.
- Pay close attention to fees and exchange rates. While some platforms may have lower fees, they may not offer the best exchange rates, and vice versa.
- Consider the user interface and customer support of each platform. The easier it is to use and the better the customer support, the smoother your experience will be.
- I would consider the security measures in place to protect your transactions.
The right tool for you is the one that best fits your business needs. Plus, international money transfer is not limited to these four companies; there are others - Skrill, Stripe, World First & Neteller, etc.- you can research. Good luck!
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