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Payoneer Or Wise For Freelancers

TL;DR

This article compares Payoneer and Wise as payment platforms for Nigerian freelancers earning in dollars. Payoneer offers global money transfer and digital payment services, while Wise is known for low-cost international transfers and multi-currency accounts. The article outlines the account setup processes for both platforms to help freelancers choose the best option for their needs.

In the world of freelancing, choosing the right payment platform is crucial for receiving earnings smoothly and efficiently. This article compares Payoneer and Wise, two popular options for Nigerian freelancers looking to earn dollars. We will explore their features, benefits, and practical usage to help you make an informed decision.

Overview of Payoneer and Wise

Before diving into the specifics, it’s essential to understand what each platform offers.

Payoneer is a financial services company that provides online money transfer and digital payment services. It allows users to send and receive funds globally, making it ideal for freelancers who work with international clients.

Wise, formerly known as TransferWise, is known for its low-cost international money transfers. It offers a multi-currency account that allows users to hold and convert money in various currencies at real exchange rates.

Account Setup Process

To start using either platform, you'll need to create an account. Here’s how to set up accounts with both Payoneer and Wise:

Setting Up a Payoneer Account

  1. Visit the Payoneer website.
  2. Click on "Sign Up" and select "Freelancer" as your account type.
  3. Fill in your personal details, including your National Identification Number (NIN) for verification.
  4. Complete the application by providing your address and bank account information.
  5. Wait for approval, which usually takes a few business days.

Setting Up a Wise Account

  1. Go to the Wise website.
  2. Click on "Register" and enter your email address and password.
  3. Verify your email and continue to provide your personal information, including your NIN.
  4. Upload necessary documents for identity verification (such as your ID and proof of address).
  5. Once verified, you can start using your account immediately.

Fees and Costs

Understanding the fees associated with each platform is crucial for maximizing your earnings.

Payoneer Fees

  • Receiving Payments: Typically free when receiving payments from Payoneer accounts or certain marketplaces.
  • Withdrawal Fees: $1.50 for transfers to local bank accounts in Nigeria.
  • Currency Conversion: 2% above the mid-market rate.

Wise Fees

  • Sending Money: Wise charges a small percentage of the amount sent, which varies by currency.
  • Currency Conversion: Very low fees, usually around 0.35% to 1%, depending on the currency pair.
  • Withdrawal Fees: There are no withdrawal fees to your Nigerian bank account.

For freelancers, Wise often proves to be more cost-effective for currency conversion and sending money internationally.

Currency Support and Conversions

As a freelancer dealing with international clients, it’s critical to choose a platform with extensive currency support.

Payoneer Currency Support

Payoneer supports multiple currencies, allowing you to receive payments in USD, EUR, GBP, and more. This flexibility is beneficial for freelancers working with clients from various regions.

Wise Currency Support

Wise allows you to hold and manage over 50 currencies in one account. You can convert between currencies at real exchange rates, which is particularly advantageous for freelancers who frequently deal with different currencies.

Both platforms provide excellent currency support, but Wise's ability to hold multiple currencies at once gives it an edge for international transactions.

Transfer Speed and Reliability

Fast and reliable transfer speeds are critical for freelancers needing quick access to their funds.

Payoneer Transfer Speed

Generally, Payoneer transfers can take 2-3 business days to process, especially when withdrawing funds to a local bank account. However, receiving payments from other Payoneer users is usually instant.

Wise Transfer Speed

Wise is known for its speedy transfers, with most transactions completed within a few hours to one business day, depending on the currency and country involved.

Thus, if you need quick access to your funds, Wise may be the better choice.

Customer Support and User Experience

Good customer support can make a significant difference, especially when dealing with financial transactions.

Payoneer Customer Support

Payoneer offers 24/7 customer support through live chat and email. They also have a comprehensive help center with articles and FAQs to assist users.

Wise Customer Support

Wise provides customer support via chat and email, but their response times are generally faster than Payoneer’s. They also have a user-friendly help center with clear guides and resources.

Both platforms offer solid customer support, but Wise tends to have a more streamlined user experience, making it easier for freelancers to resolve issues quickly.

Conclusion

Choosing between Payoneer and Wise ultimately depends on your specific needs as a freelancer. If you prioritize low fees and fast transfers, Wise might be your best bet. On the other hand, if you require extensive currency options and services tailored for freelancers, Payoneer could be the way to go. Consider your workflow, client preferences, and the currencies you deal with to make the best choice. Whichever platform you choose, ensure you have your NIN and preferred bank account ready for a seamless setup.

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Frequently Asked Questions

The choice between Payoneer and Wise largely depends on your specific needs. Payoneer is often preferred for receiving payments from international clients, especially in the freelancing space, as it integrates well with many freelance platforms. Wise (formerly TransferWise) is great for transferring funds at lower fees and offers favorable exchange rates. If you need to receive payments frequently, Payoneer might be more advantageous; for transferring funds to your local bank account, Wise could be the better option.
Payoneer charges a fee for receiving payments, which can vary based on the payment method and currency. Additionally, there are fees for withdrawing funds to your local bank account. Wise, on the other hand, typically charges a percentage of the amount being converted and transferred, with transparent pricing. It's essential to compare the specific fees based on your transaction volume and frequency to determine which service offers the best value for your freelancing needs.
Yes, many freelancers in Nigeria use both Payoneer and Wise to take advantage of their unique features. You can receive payments through Payoneer from various freelance platforms and then use Wise to transfer those funds to your local bank account at a more favorable exchange rate. This dual approach can help you manage your finances more efficiently and save on transaction costs.
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Chidi Okonkwo

Senior Freelancer & Remote Work Consultant

With 6+ years of freelancing experience and over $120,000 earned from Fiverr, Upwork, and direct clients, I share everything I've learned.

Top Rated Upwork Fiverr Pro Seller 500+ Projects
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