Stripe vs Payoneer in India: Everything You Need to Make Your Choice

Stripe and Payoneer are online payment platforms that you’ve probably heard of – but that doesn’t mean they’re the same. If you’re trying to work out which one will be right for your India-based business, you’ll need to consider several aspects, including transaction fees, payout options and gateway features. Which one will work best for you will depend upon your specific business or freelancing requirements.

What should you consider when choosing between the Stripe payment gateway and Payoneer?

For B2B service exporters, SMBs, sole traders, entrepreneurs and freelancers in India, choosing the right payment platform to integrate into your business is critical, but it’s certainly not a “one size fits all” situation. You’ll need to look at the merits of each platform in turn and make the decision based on the unique needs of your business. 

In which ways are Stripe and Payoneer similar?

On the surface, Stripe and Payoneer are similar in a number of ways – you would have heard of both in the context of processing international payments and money transfers, and both have good reputations in terms of catering to businesses.

Specifically, key areas of similarity include: 

• Both have a wide international presence, enabling the receipt of payments in a multitude of currencies. 
• Payoneer and Stripe both offer high levels of security and have a good focus on fraud prevention.
• Neither charge monthly account fees. 
• Both allow users to receive payments via mobile apps as well as on the web.

However, there are critical differences, and each platform is targeted to serve specific types of users and businesses. 

The important differences between Stripe and Payoneer in India

For Indian businesses faced with the decision between Payoneer and Stripe, there’s one huge difference you’ll need to know about: at the moment, Stripe services are offered by invitation only in India. Indian businesses can’t just sign up to Stripe via their website. Instead, they must request an invitation from the Stripe sales team. They are currently accepting businesses that are focused on international expansion, and companies that are accepted may need to provide an Importer/Exporter code from the Directorate General of Foreign Trade and an RBI Transaction Purpose Code.

Opening a Payoneer account isn’t subject to this level of scrutiny and is therefore a more accessible option for most would-be account holders.

However, beyond this critical difference, the two platforms offer users a different experience in multiple ways – so even if your company can secure a Stripe invitation, there is more to be considered.

The key differences between the two platforms:

• The focus of the Stripe payment gateway is domestic checkout services and online payments, making it ideal for online retailers marketing to a largely domestic customer base. It’s also good for businesses based on the SaaS model. Payoneer, however, was developed for receiving cross-border payments, with the availability of multi-currency accounts enabling users to minimize FX costs.
• When it comes to fees, Payoneer has a big advantage – transactions between Payoneer accounts are free. Both platforms charge currency conversion fees, depending on the volumes of transactions – Stripe’s payment fees may be higher.
• When it comes to Stripe features, the emphasis is placed on the checkout infrastructure, which is very strong. Payoneer, however, is more focused on international payments and the efficiency of local receiving accounts.
• With Stripe India’s current onboarding policy, it’s less likely to be suitable for freelancers and entrepreneurs, whereas these users will find Payoneer to be the better option, with plenty of local support and expertise.

Payoneer is well-established in India, especially for ecommerce sellers, and currently doesn’t have the regulatory barrier to entry that Stripe has.