PayPal to Payoneer: All You Need to Know

PayPal and Payoneer are two of the most widely used online payment platforms, providing freelancers, businesses, and eCommerce sellers with an easy way to receive international payments. However, PayPal is not officially available in Pakistan, making it impossible for their users to withdraw or transfer funds directly to and from that region.

This has led many users to explore ways to transfer money from PayPal to Payoneer, either to access funds locally or to find a more convenient withdrawal method. Since Payoneer is fully supported in Pakistan, it is an excellent alternative to PayPal for receiving payments and withdrawing funds to Pakistani bank accounts.

Whether you’re a freelancer, eCommerce seller, or business owner, this guide will help you navigate the PayPal to Payoneer transfer process and understand the best payment options available in Pakistan.

PayPal vs. Payoneer: Key differences

When choosing between PayPal and Payoneer, it’s essential to understand their key differences, especially regarding availability, fees, and withdrawal options.

Availability in Pakistan

• PayPal: Not officially supported in Pakistan.
• Payoneer: Fully available, supported and in partnership with the leading national banks.

Transaction fees

Feature	PayPal	Payoneer
Sending money to another user	5% fee (varies)	Free (for Payoneer-to-Payoneer transfers)
Receiving payments	4.4% + fixed fee	Free from partner platforms (Fiverr, etc.)
Withdrawal to local bank	Not available in Pakistan	2% fee (varies by bank)
Currency conversion fee	3.5% – 4%	2% – 3.5%

If we boil this down to the essentials, it’s clear that Payoneer offers lower fees and direct withdrawals to Pakistani banks, making it a better option for local users.

Learn more about how to get paid by clients and how to pay suppliers with Payoneer.

Withdrawal and banking options

• PayPal: Requires a bank account in a supported country (e.g., USA, UK, UAE).
• Payoneer: Allows direct withdrawals to Pakistani banks like HBL, UBL, MCB, Bank Alfalah, and Meezan Bank.

Learn more about how to withdrawal funds with Payoneer.

Transfer and exchange rates

• PayPal’s exchange rate includes a 4% currency conversion fee, making it expensive for non-USD transactions.
• Payoneer’s exchange rate is generally 2% to 3.5% above the mid-market rate, making it slightly better for conversions.

Can you transfer money from PayPal to Payoneer?

This is one of the most frequently asked questions and the short answer is that there is no direct transfer option, as PayPal does not officially support withdrawals to Payoneer accounts.

However, alternative methods allow you to move funds from PayPal to Payoneer, which many freelancers and business owners use to access their money. These methods involve:

• Using a U.S. virtual bank account provided by Payoneer
• Leveraging freelancer platforms like Fiverr
• Peer-to-peer exchanges (with caution)

Why PayPal doesn’t support direct transfers to Payoneer

• Payoneer is a competitor to PayPal, which means PayPal does not allow direct integration
• PayPal’s withdrawal system is limited to linked bank accounts and debit cards in supported countries (Pakistan is not on the list)
• Payoneer accounts are not considered “traditional” banks in PayPal’s system

Since Payoneer offers a U.S. virtual bank account, many users successfully withdraw PayPal funds through this method.

How to transfer money from PayPal to Payoneer

Although there is no direct PayPal-to-Payoneer transfer, these three methods can help you move your funds efficiently:

Method 1: Using a U.S. virtual bank account

Payoneer provides a U.S. virtual bank account, allowing you to withdraw PayPal funds to this account and later transfer them to your Payoneer balance.

Steps to transfer PayPal to Payoneer via a U.S. bank account:

1. Log into your Payoneer account and go to Global Payment Service
2. Copy your U.S. virtual bank account details (Bank Name, Routing Number, Account Number)
3. Log into PayPal and navigate to Wallet > Link a Bank Account
4. Enter the Payoneer U.S. bank details and complete the verification
5. Once linked, withdraw money from PayPal to this bank account
6. The funds will arrive in your Payoneer account within 3-5 business days

• Fees: PayPal charges a withdrawal fee, and Payoneer applies a 2% – 3.5% currency conversion fee when you transfer to your local bank
• Processing Time: Usually 3-5 business days

Method 2: Using a freelancer or marketplace platform

If you work on Fiverr or Freelancer.com, you can use these platforms to indirectly move funds from PayPal to Payoneer.

Steps to transfer via freelancer platforms:

1. Withdraw your PayPal balance to your freelance marketplace account
2. Use Payoneer as your payout method on the platform
3. Transfer funds from the platform to Payoneer
4. Withdraw from Payoneer to your Pakistani bank account

• Fees: Vary depending on the platform but can be cheaper than direct transfers
• Best for: Freelancers who already use freelance marketplace platforms

Method 3: Peer-to-Peer exchange (risky alternative)

Some users exchange funds with trusted individuals by sending PayPal payments to a person in exchange for Payoneer funds.

Warning:

• Peer-to-peer transactions are not secure and can lead to scams
• Always use trusted contacts or verified exchange services

Which transfer method is best?

Method	Fees	Speed	Risk Level	Best For
U.S. Virtual Bank Account	Medium	3-5 days	Low	Users with access to Payoneer’s Global Payment Service
Freelancer Platforms	Low	1-3 days	Low	Freelancers using Fiverr etc.
Peer-to-Peer Exchange	Varies	Instant	High	Users with trusted contacts only

It’s worth noting that the U.S. bank account method is the most reliable and safest way to transfer money from PayPal to Payoneer.

PayPal to Payoneer transfer fees

Understanding the fees involved in transferring money from PayPal to Payoneer is important in order to avoid unexpected costs. Since PayPal does not officially support direct transfers to Payoneer, the fees vary depending on the method used. Below is a breakdown of potential charges.

Breakdown of transfer fees

Fee Type	PayPal to U.S. Virtual Bank (Payoneer)	Freelancer Platforms	Peer-to-Peer Exchange
PayPal Withdrawal Fee	Varies by country (around 2%)	No withdrawal fee if using Fiverr	Varies by exchange provider
Payoneer Receiving Fee	1% of incoming funds (for U.S. accounts)	No receiving fee	Depends on the exchange provider
Currency Conversion Fee	2% – 3.5% (Payoneer)	Platform-specific rates	Exchange provider’s markup
Total Estimated Cost	Around 3% – 5%	Usually under 3%	Varies significantly

The cheapest method depends on your circumstances. If you are a freelancer, transferring funds through Fiverr can reduce costs. If you have a Payoneer U.S. virtual bank account, the total fees remain moderate, but conversion costs may apply when withdrawing to a Pakistani bank.

Hidden costs to consider

• Exchange rate markups: Payoneer adds a markup on currency conversions, which means the exchange rate you receive may be lower than the market rate
• Bank processing fees: Some local banks may apply additional charges for international transfers
• ATM withdrawal fees: If using a Payoneer card, ATM withdrawals in Pakistan carry a fee of around $3 per transaction

To minimize costs, always check the latest Payoneer and PayPal fee structures before making a transfer.

Can you verify PayPal with a Payoneer card?

This method used to work in the past, but is no longer a reliable solution due to PayPal’s stricter policies.

Why Payoneer cards no longer work for PayPal verification

• PayPal now requires users to link a bank account from a supported country instead of just a card
• Payoneer cards are prepaid debit cards, which PayPal does not always accept for verification
• If PayPal detects a Payoneer account as a third-party service, it may flag or block the transaction

Alternative methods to verify PayPal in Pakistan

Since PayPal is not available in Pakistan, users looking to verify their PayPal accounts often consider workarounds. Some possible options include:

• Using a U.S. or UAE-based friend’s account to verify PayPal with a local bank
• Opening an account in a PayPal-supported country (such as UAE, UK, or the U.S.)
• Using online banking with international account support, though this comes with risks and restrictions

Is verifying PayPal with Payoneer recommended?

Currently, Payoneer is not a recommended method for PayPal verification due to frequent rejections. If you are looking for an alternative payment service, consider using Payoneer directly instead of PayPal, as it allows withdrawals to Pakistani bank accounts without verification issues.

Alternatives to PayPal for Pakistani users

Since PayPal is not officially available in Pakistan, many freelancers, businesses, and eCommerce sellers seek reliable alternatives. While some users try to transfer funds from PayPal to Payoneer, others prefer to work with payment platforms that fully support Pakistani accounts.

Best PayPal alternatives in Pakistan

Payment Platform	Availability in Pakistan	Best For	Bank Withdrawals
Payoneer	Yes	Freelancers, eCommerce, affiliate marketers	Yes
Wise (formerly TransferWise)	Limited	International business payments	Yes (via third-party accounts)
Skrill	Yes	Freelancers, online transactions	Yes
Western Union	Yes	Receiving personal payments	Yes

Wise vs. Payoneer: Which one is better?

• Wise offers lower exchange rate markups than Payoneer, making it a good choice for international transfers.
• Payoneer is better for freelancers and businesses, as it is widely accepted by online platforms.
• Wise is not directly available in Pakistan, which limits its usefulness for local withdrawals.

If you’re looking for the most practical and reliable PayPal alternative, Payoneer is still the best choice for Pakistani users.