Skrill vs Payoneer: A Comparative Guide for UK and EU Merchants

Skrill and Payoneer are both well-known as digital wallets for international money transfers, offering a variety of features for both individuals and businesses. In this article, we specifically look at their solutions for merchants, particularly in the UK and Europe.

We will examine the strengths and weaknesses of each service, including payment methods, pricing, and integration capabilities, to assist you in making an informed choice. Please note that the information provided was collected from their respective websites in November 2024 and may change over time.

Overview

Skrill was founded in 2001 in the United Kingdom, originally as Moneybookers. Today, Skrill is part of the Paysafe Group, a multinational company specialising in digital payments. Skrill initially targeted individuals needing easy cross-border transfers, but has since shifted focus towards providing payment processing for merchants, especially for e-commerce businesses and industries like gaming, betting and forex trading.

Payoneer, founded in 2005 in the United States, is a global payment service owned by Payoneer Inc. Payoneer's business model primarily revolves around helping freelancers, businesses, and e-commerce merchants accept international payments. Payoneer has a strong focus on cross-border payments, offering solutions for both business-to-business (B2B) and business-to-customer (B2C) transactions.

Supported Markets and Customer Base

Skrill operates in over 100 countries globally, with a strong presence in Europe, including the UK and also the US. Skrill supports over 40 different currencies, making it suitable for cross-border transactions. It primarily serves e-commerce merchants, online gaming, betting, trading, and retail industries.

Payoneer is available in over 190 countries, covering more than 135 currencies. Its customer base includes freelancers, small-to-medium enterprises (SMEs), and large e-commerce platforms.

Features

Supported payment methods

When evaluating payment solutions like Skrill or Payoneer for online payment processing, the payment method availability may be one of the deciding factors.

Skrill supports over 100 payment methods globally including:

• Credit and debit cards (e.g., Visa, MasterCard, Maestro, Carte Bleue)
• Digital wallets (Skrill, Neteller, PaysafeCard, Rapyd)
• Pay-by-bank (UK and 15 countries in EU)
• Local alternative payment methods (e.g., iDEAL in the Netherlands, POLi in Australia, Blik in Poland, Multibanco in Portugal etc.)

Payoneer Checkout has a limited payment method offering compared to Skrill, which includes:

• Card payments (Visa, Mastercard, American Express, JCB, Discover, Diners Club)
• BNPL options (Arterpay – US only, Klarna – globally)

Recurring billing and subscription management

Skrill supports recurring payments (credit and debit card payments only), making it suitable for subscription-based businesses.

Payoneer does not directly offer recurring payments anywhere apart from the United States.

Unique features

Skrill has a big focus on cryptocurrencies, enabling merchants to accept payments in popular digital currencies.

• Digital Wallet Payments: Skrill encourages businesses to accept payments from customers using their Skrill wallet, using just an email address and password.
• Crypto Withdrawals: Skrill allows customers to withdraw their money as cryptocurrency, sending it directly to their chosen crypto wallet.

Payoneer is heavily invested in cross-border payments, particularly B2B transactions, with features like: 

• VAT Payment Services: Payoneer allows businesses to pay VAT directly in various countries, making tax compliance easier and faster.
• Local IBAN Payment Accounts: Payoneer offers local IBAN accounts, enabling businesses to receive B2B payments in local currencies and reduce conversion fees.
• B2B Payouts: Payoneer offers several options to make payments to internationally-based suppliers, contractors or employees.
• Funding Options: Payoneer provides access to working capital and funding solutions, helping businesses grow and manage cash flow.
• Marketplace Payouts: Payoneer supports payouts from major platforms like Amazon, Fiverr, and eBay, making it easier for freelancers and sellers to receive their earnings.

Security & Compliance

Skrill: Skrill is PCI-DSS Level 1 compliant and offers 3D Secure for fraud protection. Skrill has acquired E-Money Institution licenses in both the UK and Ireland for serving merchants across the EU & UK as well as holds a license in the US.

Payoneer: Payoneer complies with international anti-money laundering (AML) standards and is PCI Level 1 compliant. The company is licensed as an EMI in the EU and UK and holds various other licenses in the US, India, Australia, Japan, Hong Kong and Singapore.

Integration

Skrill leads in e-commerce compatibility with 22 plugins for popular platforms, including:

• Wix
• Magento
• Shopify
• WooCommerce
• PrestaShop
• BigCommerce
• +16 more

It also provides an API for more custom integration; however, it is not very user-friendly as is available as separate PDF files.

Payoneer Checkout has fewer e-commerce plugins compared to Skrill, 8 in total, including:

• Shopify
• Magento
• WooCommerce
• Shoplazza
• Shopline
• Shopbase
• Shopyy
• Ueeshop

However, it does offer a more comprehensive developer portal with APIs and SDKs for custom integrations. Integrations are possible both as an embedded solution or a separate page where the user gets redirected to make a purchase.

Third-party integrations

Skrill website does not mention any ready-made integrations with third-party tools such as accounting, CRM or others.

Payoneer, on the other hand, offers integrations with QuickBooks and Xero for payment reconciliation as well as connects easily with marketplaces and freelance platforms like eBay, Amazon, Upwork, Fiverr and others.

Merchant dashboard usability

Both Skrill and Payoneer offer basic merchant dashboards for tracking payments that allow to track earnings, generate balance statements and export this data.

Skrill vs Payoneer Fees

Skrill fees

The account setup is free. The pricing for merchants is not publicly available as is offered individually. Skrill provides lower fees for merchants who use ready-made shopping cart integrations and discloses some of these fees on the website.

For example, when using Shopify, the following fees are applied:

Skrill fees for Shopify as of 20 November 2024. For a full breakdown of Payoneer fees please contact the provider.

Payoneer fees

Pricing information is only available in US dollars. There are no setup fees and no fees for receiving money from Payoneer customer balances. However, receiving funds from customers directly via card incurs fees of up to 3.99%, depending on the country. In certain countries, an additional fixed fee of $0.49 is added.

Payoneer fees as of 20 November 2024. For a full breakdown of Payoneer fees please see the provider’s website.

Settlement Times

Skrill settlement time for funds depends on the payment method selected by the customer, typically taking 0-2 business days.

Merchants can withdraw funds to their corporate account at any time without limits on withdrawal frequency. Automated withdrawals are available upon request only.

Payoneer offers settlement within 2 business days for some customers, subject to risk evaluation. For others, payment processing may take longer. Currency conversion is free for settlements in USD, GBP, EUR, JPY, and HKD, while a conversion fee applies for other currencies.

Withdrawals to your account can be scheduled daily, weekly, or monthly based on your preference. In some regions, auto-withdrawals are required by regulators, while in others, they are optional.

Support

Skrill provides customer support through live chat and email. When contacting the Skrill Merchant Services Team, you’ll need to provide your Merchant ID, meaning there are no dedicated account managers, so different staff members may handle your requests each time. Skrill has a Trustpilot rating of 2.7, with mixed reviews. Common complaints include account holds, slow support, and delayed transactions, though some users praise its low fees and ease of use.

Payoneer provides 24/7 support via phone, live chat, and email. Their complaints page states they aim to resolve issues within three business days, whether you contact them by letter, phone, email, chat, or the contact form on their website. On Trustpilot, Payoneer has a rating of 3.8. Many users appreciate the support team’s responsiveness, but negative reviews highlight dissatisfaction with fees and account suspensions.

Final Thoughts: Skrill or Payoneer?

When deciding which is better, Skrill or Payoneer, consider your business's specific needs.

Skrill is a solid option for merchants who prioritize e-commerce compatibility and require a broader range of payment methods, including credit cards, local alternatives, and pay-by-bank solutions across the UK and Europe. It's well-suited for industries like gambling, betting, and trading, and merchants looking to add crypto payment options or cater to customers using digital wallets.

Payoneer is a good choice for businesses that operate on a global scale and are heavily focused on cross-border B2B payments. Its VAT payment features, local IBAN accounts, and integrations with major marketplaces like Amazon and Fiverr make it a preferred choice for freelancers, SMEs, and businesses dealing with suppliers and partners internationally.

Consider Alternatives: Noda Payment Processing

If you're looking for a fresh approach to payment processing, Noda offers an attractive alternative to both Skrill and Payoneer. With Noda open banking platform, customers can pay you directly from their bank accounts, avoiding the need to enter card details. This simple checkout eliminates card networks and allows to reduce processing fees, as well as issues like chargebacks and rolling reserves.

Noda supports over 2,000 banks across 28 countries (UK, EU, Brazil and Canada), allowing your users to benefit from simple checkout across multiple markets. We support both instant payments and payouts, making refunds process smoother. Noda pay-by-bank solution is easy to integrate with popular platforms like Magento, PrestaShop, OpenCart and WooCommerce, or through a straightforward API for more tailored solutions.

At Noda, we provide dedicated account managers for personalised support. Reach out today to see how Noda can improve your payment processes, we will be happy to look into your individual case.