When you’re ready to invest in crypto, you can buy crypto with Payoneer to simplify the process significantly. First, make sure your Payoneer account is fully verified. Next, you have 2 different options for buying crypto with Payoneer.
The first option is to choose a crypto exchange that accepts either debit card transactions like Binance or Bybit and make an account. The second option is to use a P2P (peer-to-peer) crypto marketplace where you can buy crypto with your Payoneer card.
This article serves as a guide on the exact steps for either of those two options.
Key highlights:
Begin by creating and fully verifying a Payoneer account to ensure secure and compliant transactions.
Select a reputable exchange like Coinbase, Binance or Kraken.
Use Payoneer to transfer funds and make the transaction on the platform of your choosing.
Monitor fees associated with both Payoneer and exchanges, as well as transaction processing times.
Consider alternative P2P marketplaces like Paxful, LocalCoinSwap, and others for flexible payment options and fees with various vendors.
Creating and verifying your Payoneer account
Obviously, you first need to make a Payoneer account. To do that, go to their website and click on “Register”, then follow the steps outlined.
Once you’ve created an account, sign in to your Payoneer account and navigate to the Verification Center (found in Settings) to fulfill all necessary document submission requirements.
This includes proof of identification, proof of residence, and other relevant information that supports your business category, ensuring all details align with your Payoneer registration and supporting documents. This is a necessary step, as it enables Payoneer to verify your identity and ensure your account’s security.
When submitting your documents, pay close attention to the types of documents accepted for each requirement. For example, proof of residence can be demonstrated through a recent bank statement, a signed rental agreement, or a utility bill, all of which must be within the past three months.
All information must match exactly with your Payoneer registration, as any discrepancies may lead to delays in the approval process.
Selecting a crypto exchange
Okay, so your Payoneer account is good and ready. The next step is to select a trustworthy crypto exchange that aligns with your financial goals and allows seamless transactions with Payoneer. This step is crucial to ensure the safety and efficiency of your cryptocurrency purchases using Payoneer.
Related: Transfer Money from Payoneer to Binance P2P
When choosing a Payoneer-friendly exchange, consider the following:
Accepts Debit Cards: You will have a Payoner debit card, so the exchange must accept debit card payments. Most of them do, but not all of them.
Regulation and Security Reputation: Opt for a platform regulated by a reputable governing body and with robust security measures to protect your funds during transactions (and afterwards).
Fee Structure: Compare the fees associated with each exchange. For example, Bybit offers free deposits with a 0.1% trading fee, whereas others like Coinbase may charge higher fees around 1.49%. Choose one that aligns with your cost goals.
User-Friendly Interface and Support: Select an exchange that provides a user-friendly interface and reliable customer support in case you encounter any issues during the buying process.
Buying crypto on an exchange with Payoneer
Now that you have selected a crypto exchange you can proceed to buy crypto directly on this platform.
Make an account on an exchange and log in
Create an account on your chosen exchange and complete any necessary identification verification steps before proceeding. For the purposes of this guide, we’ve chosen Coinbase. If you don’t an account yet, you can create a new Coinbase account by using our link.
The exact steps may be slightly different on different exchanges, but they all follow a similar pattern.
Verification Process: Provide valid identification documents (passport, ID, utility bills, or bank statements) to complete the verification process and ensure account security.
Log in: After registration, log in to your chosen exchange using your username and password.
Account Overview: Your account dashboard will display your current balance, transaction history, and other essential details for easy management.
With these steps completed, you’re ready to move forward and utilize your Payoneer debit card to fund your crypto transactions.
Choose the option to purchase crypto with a debit card
Once you’ve chosen an exchange, go to the purchasing interface and opt to use a credit/debit card.
Here, you’ll select the desired cryptocurrency and amount, and complete the information required by the exchange. This will include information such as your Payoneer card details and the CVV on the back of your card. You may receive a verification code to your phone or email, especially when doing it for the first time.
Make sure you understand the fees associated with the transaction.
Before finalizing the transaction, double-check that you have enough funds in your Payoneer account and that the transfer is allowed by both Payoneer’s terms of service (ToS) and the exchange’s policies.
After completing the process, assuming everything’s in order, your chosen cryptocurrency will be credited to your account on the exchange.
Ensure that you understand any associated fees to optimize your purchase, as exchanges may charge a percentage or flat fee for trades, ranging from 0.1% to 1.49% based on the platform.
Alternative: Use a P2P crypto marketplace to buy crypto
To expand your options, you can also use a P2P crypto marketplace to buy crypto
Platforms like Paxful, LocalCoinSwap, Noones, BitValve, and Hodl Hodl allow you to purchase crypto directly from other individuals who are users of the platform. Also, some exchanges offer a P2P marketplace option, such as KuCoin or Bybit.
This approach can help you avoid additional fees on crypto transactions, though this can depend on the seller. Another benefit is that, with P2P marketplaces, you don’t always have to use your Payoneer card, you can also use Payoneer for a direct bank transfer (though, again this can depend on the particular seller).
Let’s take a look at some of the more prominent P2P crypto marketplaces.
Paxful
Using Paxful is another method for buying cryptocurrency with Payoneer. This approach is particularly useful for those who want to avoid having to go through a centralized exchange as an intermediary.
On Paxful, buyers incur no default fee, while the fee for sellers is a flat 1%.
Paxful, with its extensive support for nearly 400 payment methods, allows users to purchase crypto directly from individuals using Payoneer. This is one of the most popular P2P crypto marketplaces, which is good for its reputation, but the downside is that many sellers charge a premium, so you can expect to be paying 2-4% on average in fees for your purchases
Here are some key benefits of using Paxful:
Instant Transactions: Paxful transactions are known for their speed, typically processing payments within minutes. Security Features: The platform’s escrow system ensures your payment is secured until the seller confirms receipt of funds. This minimizes the risk of scams and fraud.
Diverse Payment Options: With over 350 payment methods, Paxful offers flexibility and convenience for users, including those using Payoneer as a payment method.
Visit Paxful
LocalCoinSwap
LocalCoinSwap lets you buy Bitcoin and other cryptocurrencies securely with your Payoneer card or as a bank transfer, as well as over 300 other payment methods.
We must say, LocalCoinSwap wins in the game of “whose name is most indicative of what they do”.
They focus on the privacy of their users, and as such, you can start using LocalCoinSwap without KYC,, which can be both a good thing and a bad thing. The platform charges 1% in fees for sellers, while there is no fee for buyers responding to offers.
LocalCoinSwap Advantages:
Support: LocalCoinSwap offers 24/7 support that helps resolve issues as quickly as possible.
Escrow Protection: Funds are locked in escrow until the trade is successful.
Payment Options: There are over 300 payment methods, Payoneer included.
LocalCoinSwap allows you to find reliable traders by rating and reviewing their profiles. You can also filter payment methods to suit your preferences. Also, the platform operates globally, so it’s accessible to users worldwide.
Noones
Noones is a P2P crypto marketplace that offers over 450 different payment methods - a truly absurd number. They have arguably the most variety in terms of their merchants. Unfortunately, it also means that many sellers charge a premium, and you are unlikely to find a seller who won’t charge you a premium of around 3%.
We have to say though, we love the web design of Noones, Pixel Art is a big weakness of ours.
In terms of platform fees, Noones charges no fees to buyers, while sellers are charged 1% for all payment methods except bank transfers, for which the fee is 0.75% for less than $50,000 and 0.1% for more than $50,000.
Here are the main benefits of using Noones:
Payment Methods: They have a ridiculously high number of payment methods available, more than 450.
Safety: Just like previous mentions on this list, Noones offers escrow protection to protect against scams.
Paxful Users: Noones platform allows integration of former Paxful users directly into the platform.
Honorable Mention #1: BitValve
BitValve is another reliable P2P cryptocurrency marketplace that supports multiple payment methods, including Payoneer.
The downside is that, while we did find sellers accepting Payoneer as a payment method, there weren’t as many as some other ones on our list. We also couldn’t manage to find information for the fees that BitValve charges.
Still, we think BitValve is worth checking out. If you had no luck finding a suitable seller on one of the other platforms, BitValve presents a good alternative with its growing community and a reputation for fast transactions.
Honorable Mention #2: Hodl Hodl
Apart from what we think is the funniest name on this list, Hodl Hodl allows users to avoid identity verification, ensuring a more streamlined and private experience. It’s definitely something more privacy-conscious users will appreciate.
We should also mention that Hodl Hodl focuses solely on Bitcoin, so if you’re looking to buy other cryptocurrencies, you may be better served looking elsewhere.
This non-custodial platform charges a small fee of 0.3% for both buyers and sellers, making it a cost-effective option for those looking to buy crypto using prepaid cards.
Hodl Hold employs a reputation-based system that allows everyone to check the reputation of whatever merchant they’re entering into an agreement with.
Understanding Payoneer Fees and Charges
When using Payoneer to buy crypto, you’d do well to consider the various fees and charges associated with the transaction process, including the platform-dependent transaction fees ranging from 1-2%, and any additional costs incurred through the chosen exchange platform.
These fees can add up quickly, so you should factor them into your overall cryptocurrency budget.
Here are some key points to keep in mind:
Payoneer itself doesn’t charge fees for depositing into exchanges, but users may encounter costs associated with the crypto platforms they choose to use.
Peer-to-peer exchanges like Paxful and LocalCoinSwap may offer lower platform fees for transactions involving Payonee, but you also need to account for the fees that specific sellers charge.
The processing time for Payoneer transactions to exchanges can also affect costs, as slower transfers might cause users to miss favorable trading rates or lead to delays.
The bottom line
To buy crypto with Payoneer in 2024, make a Payoneer account and make sure it’s properly verified through the Verification Center. Then, select a reputable and regulated crypto exchange or P2P marketplace that supports Payoneer as a payment method.
Decide what crypto you want to purchase, consider the associated fees, and execute your purchase. If using a P2P marketplace, make sure you’ve done your due diligence on both the platform itself, as well as the specific seller you’re interested in buying from.