6 Cheaper Payoneer Alternatives for Your Online Transcations

Written by
Lou Zarcal
Published on
August 15, 2023
6 Cheaper Payoneer Alternatives for Your Online Transcations

Payoneer has been a popular choice for individuals and businesses alike when it comes to online money transfers. However, if you're looking for more cost-effective options, there are several alternatives available.

In this post, we will explore seven reliable alternatives to Payoneer, including Parallax, a platform that has gained recognition for its affordability and user-friendly approach to money transfers.

Note: In this article, we will be using $56 as the mid market rate.

To begin, Payoneer charges up to 2% transaction fees on international transfers and another 2% for an exchange rate markup.

For example, if you were to send $1,000 USD with Payoneer and the mid market rate, as of today, is 1 USD = 56 PHP, here's how the calculation would look:

  • Transfer fee: $20
  • Exchange rate markup of 2%: 1 USD = 54.88
  • Amount received in PHP: ($1,000 - $20.00) x 54.88

After deducting the fee, you would receive approximately 53,782.4 PHP in this example.

Here are some other alternatives to Payoneer.

1. Parallax

Parallax is an emerging platform that allows you to move money faster and cheaper, simplifying international money transfers when you need it. By opting for Parallax, you can significantly reduce your transfer costs while enjoying reliable service.

The great thing about this platform is transaction fees cost 0.9% and no exchange rate markup  – If you send 1,000 USD, you get the mid-market exchange rate, usually the most competitive.

  • Transfer fee: 0.9% or $9
  • No exchange rate markup: 1 USD = 56
  • Amount received in PHP: ($1,000 - $9.00) x 56

That’s a total of 55,496 PHP.

2. Wise (previously TransferWise)

Wise is a well-known alternative to traditional banking and offers competitive rates for international money transfers. It operates on a peer-to-peer system, ensuring low fees by matching individuals who want to exchange currency in different countries.

The typical fees are between 0.35% to 1.5% per transaction. Wise has a minimum exchange rate markup of 0.43% and a maximum of 1.03%, depending on the currency.

Let’s see how this compares to others if you send $1,000 to the Philippines:

  • Transfer fee: $15
  • Exchange rate markup of 0.44% (USD): 1 USD = $55.6
  • Amount received in PHP: ($1,000 - $15.00) x 55.6

Your receiver gets an estimate of 54,766 PHP. Although Wise’s exchange rate markup is low, be wary of the transfer fee, depending on the payment method you choose.

3. WorldRemit

WorldRemit is a trusted platform that offers low-cost international money transfers. It provides competitive exchange rates, transparent fees, and supports various transfer methods, including bank transfers, cash pickups, and mobile wallet top-ups.

The transfer fees vary depending where you are sending money to. It can range from $1.99 to $3.99 per transaction, and 1% to 1.6% in its exchange rate markup.

If you are transferring $1,000 to the Philippines, here’s how your calculation could look like:

  • Transfer fee: $3.99
  • Exchange rate markup of 1.6%: 1 USD = 55.104 PHP
  • Amount received in PHP: ($1,000 - $3.99) x 55.104

The total amount transferred would be 54,884.14 PHP.

4. Revolut

Revolut is a popular fintech platform that offers a range of financial services, including money transfers. Revolut supports multiple currencies and offers additional features like budgeting tools and cryptocurrency support, making it a comprehensive alternative to Payoneer.

Their international money transfer rate costs up to a maximum of $6 per transaction, depending on the where the money is received.

Their exchange rate markup ranges 0.5% – 1% and 1% - 2% to all currencies if you transfer during the weekends. This means that transferring on Saturday may be more expensive than transferring on Wednesday.

For example, if you send 1,000 USD, they receive 54,550.72 PHP. Let’s break it down:

  • Transfer fee: $6
  • Exchange rate markup of 2%: 1 USD = 54.88 PHP
  • Amount received in PHP: ($1,000 - $6) x 54.88

5. OFX

OFX provides competitive rates, transparent fees, and offers personalized support for businesses and individuals.

If you are transferring money under $10,000, you’ll be charged their standard fee of $15. The exchange rate markup ranges from 0.9% to 1.5%, depending on the currency.

If you send $1,000 to the Philippines, your recipient would get:

  • Transfer fee: $15
  • Exchange rate markup of 0.9%: 1 USD = 55.5 PHP
  • Amount received in PHP: ($1,000 - $15) x 55.5

Total of 54,667.5 PHP.

6. Remitly

Remitly focuses on providing affordable remittance services, making it an excellent alternative for international money transfers.

The standard fee for sending money to the Philippines would range between $0 to $4.99. Remitly charges 1% – 3% for their exchange rate.

Let’s say you send 1,000 USD, the recipient gets around 54,048.9 PHP. Here’s a breakdown:

  • Transfer fee: $4.99
  • Exchange rate markup of 3%: 1 USD = 54.32 PHP
  • Amount received in PHP: ($1,000 - $4.99) x 54.32

Here’s a summary of all that info!

While Payoneer has been a popular choice for money transfers, there are several alternatives available that offer more cost-effective solutions. Parallax, with its low exchange rates and fast processing, stands out as a promising option. You even have the option to convert your money to crypto in a snap.

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