Wise vs PayPal vs Payoneer: which works best for freelancers in the Philippines?

The Philippines’ freelance economy has grown rapidly since the COVID-19 pandemic. This growth is driven by freelancers in the creative industry, IT, and administrative roles working with foreign clients. Selecting the right tool is key to managing earnings from global clients. Traditional banking services often lag in speed and in international transaction costs.

On the other hand, digital payment platforms have become essential for Filipinos. They navigate local regulations more efficiently, deliver lower fees without surprises, and provide competitive exchange rates. Platforms like Wise, PayPal, and Payoneer are top choices for cross-border payments. In this article, we shed some light on these platforms to help you decide which works best for freelancers in the Philippines.

Wise

Wise stands out for being upfront about its charges and being affordable. They tell you the transaction cost before initiating the transaction, and use mid-market exchange rates with no hidden markups. It’s fully accessible to Filipinos, allowing them to create accounts and receive payment in multiple currencies, including PHP. Users can hold the foreign currency and withdraw to their local bank accounts as required.

Pros:

• Low fees: Less than 1% transfer fee, low fixed fee, no hidden charges.
• Fast: Transfers often complete in hours or same-day, supporting local networks like InstaPay and PESONet.
• Multi-currency support: Hold and exchange 40+ currencies, perfect for diverse client payments without hefty losses.
• Batch payments: Handle up to 1,000 invoices simultaneously, ideal for prolific freelancers.

Cons:

• Limited credit options: No loans or advances available.
• No platform-specific integrations: Some hitches integrating with marketplaces like Upwork, compared to some other payment platforms.
• Verification: Rigorous KYC may slow initial setup.

Also read: How to open US and UK bank accounts in the Philippines

PayPal

PayPal is one of the oldest players in the fintech space, making it widely acceptable and readily available in over 200 countries, including the Philippines. PayPal might charge high fees and take up to three days to settle payments, but it is secure and supports withdrawals to local accounts. Users can link their local bank accounts, debit cards, credit cards, and mobile wallets like GCash and Maya to their PayPal accounts for seamless transactions.

Pros:

• Wide acceptance: Effortless integration with global platforms and clients, including e-commerce sites.
• Seller protection: Safeguards against disputes in goods and services transactions.
• Batch payments: Process up to 15,000 payments across 156 countries in one go.
• Free withdrawal: Free for withdrawals of 7,000 PHP or more. A fee of 50 PHP is charged for amounts less than 7,000 PHP
• Debit card: Available for business users, offering cashback perks.

Cons:

• High fees: 3.4% and 15 PHP for domestic payments. 4.4% and a fixed cost for international. There is a 4% markup on currency exchange.
• Withdrawal challenges: Fees apply for smaller amounts, and the structure can be complex for frequent users.

Payoneer

Payoneer is a popular platform for professionals and businesses in the Philippines for cross-border payments. The platform offers multi-currency accounts, a physical or virtual card for spending, and direct integration with marketplaces. It allows users to receive payments from international clients in various currencies, withdraw funds to a local bank account or GCash, and pay for online services.

Pros:

• Integrations: Smooth connections with freelancing platforms
• High limits: Debit card allows $200,000 daily withdrawals, no monthly cap.
• Local withdrawals: To Philippine banks in up to two days; available in over 190 countries.
• Multi-currency: Receive in 10+ currencies without setup fees.

Cons:

• Fees: Up to 3% for non-Payoneer transfers; 0.5–3.5% conversions; $29.95 USD annual card fee, plus dormancy charges if low activity. However, transactions between Payoneer users are free.
• Slower: Withdrawals take up to two days; account approval can span hours to days.
• Not a gateway: Limited payment processing for custom sites.

Also read: How to convert US dollars to Philippine pesos

Wise vs PayPal vs Payoneer: which works better for freelancers in the Philippines?

We understand the dilemma of choosing between three good options. Payoneer excels at integrating with freelancing platforms, making it a go-to for Upwork or Fiverr users despite potential fees. PayPal offers strong acceptance and quick local withdrawals for larger sums, making it suitable for e-commerce freelancers, though expensive. Wise is more affordable and offers mid-market rates.

In your quest for the best cross-border payment solutions, consider Grey. It is a reliable payment platform designed to simplify international transactions for freelancers in the Philippines. By offering instant multi-currency accounts for USD, GBP, and EUR,  minimal transaction fees, no hidden charges, swift payment processing, and competitive exchange rates, it enables seamless transfers for individuals and businesses. You can also get a virtual USD card to simplify online purchases.

Get started with Grey today for hassle-free international transactions.

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