If you are from where I am from, then you’ll understand when I say Payoneer and PayPal are the “Old Takers” of cross-border payments. For a long time, they were the popular answers to the question of how creators get paid online. If you were monetising content, selling digital products, or working with international brands, one or both of these platforms were almost certainly part of the conversation.
That still holds true for many creators. However, for some reason, many creators seem to be drifting away from both platforms, and it's easy to understand their frustration. This article explores the experiences of these looks at the real reasons behind that shift.
Also read: How creators receive payouts from international platforms
Why are creators moving away from Payoneer?
Payoneer built its reputation on marketplace integrations. Amazon, Upwork, Fiverr, and many other global platforms integrated seamlessly with Payoneer, allowing users to manage their payouts from these platforms. However, seamless integration is not enough to keep creators using the platform. Here are some reasons Payoneer might not be as favoured:
- High fees: Payoneer charges multiple fees that add up into significant transaction cost. Key costs include up to 3.99% to receive credit card payments, 1% for ACH bank debits, and 0-1% for currency conversions. While receiving payments from other Payoneer users is free, a $29.95 annual fee applies if the account is inactive for 12 months or if you receive less than $2,000 in a year.
- Poor exchange rates: Payoneer does not charge a visible conversion fee like some other platforms do. Instead, it builds a margin into the exchange rate it applies when converting your balance. Payoneer generally charges a markup of 0.5% to 2% (up to 3.5% for cards/wallets) above the mid-market exchange rate. While often cheaper than traditional banks', this fee is higher than competitors'.
- Customer support might not be responsive: From delayed responses, confusing account freezes, and unresolved disputes, Payoneer users often complain about the customer support.
- Limited reach in some regions: Despite being a global platform, Payoneer's ability to pay out in local currencies is inconsistent. In some markets, your only option is to receive USD and convert it yourself. In others, certain features are restricted or unavailable entirely. Creators who assumed global coverage sometimes discover the gaps at precisely the wrong moment.
Why are creators moving away from PayPal?
PayPal is a big name in the cross-border payment space, widely used by creators for the reliance adnd familiariy. Again, these benefits are not enough, as emerging digital payment platforms offer more perks. These are the reasons creators are moving from PayPay.
- High fees: Like Payoneer, PayPal users face high fees as the platform charges a percentage fee on incoming payments, and a fixed fee depending on the currency.
- Holds and freezes are common: Sometimes, it just feels like PayPal's fraud detection is aggressive. Creators often experience account restrictions and suspensions that lead to losses or getting stranded.
- It is not available everywhere: Theoretically, PayPal is available in over 200 countries, but in reality, creators in either cannot receive PayPal payments at all or face such significant limitations.
- Limited feature: Over the years, PayPal has not evolved much compared to what fintech platforms now offer creators. With multi-currency accounts, real-time conversion, instant local withdrawals, and invoicing tools, PayPal seems to be running behind platforms like Grey and Wise.
What creators are moving towards
The shift away from Payoneer and PayPal is not a move away from digital payments. It is a move towards better digital payments. And the things creators are looking for when they switch are fairly consistent.
- Transparent fee structure
- Low transaction fees
- Swift payment processing
- Responsive customer service
- Competitive exchange rates
- Reliable access to funds
- Multi-currency flexibility
Also read: How to collect international creator funds in local currency
Making the move with Grey
As creators move away from Payoneer and PayPal, platforms like Grey offer virtual USD, EUR, and GBP accounts that they can share directly with clients and integrate with other platforms. Payments are swift, conversion rates are competitive, fees aretransparent, and withdrawals to local bank accounts are processed in minutes.
Sign up on Grey or download the app to get started.
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