This morning, I received an email from Dan.com announcing a required update to my payment settings: “Action required! Update your payout settings | Dan.com” The email was sent to customers to notify them that Payoneer will be handling the company’s bank payouts. A second email that followed clarified that an update is not required for customers who do not wish to work with Payoneer.
I reached out to Dan CEO Reza Sardeha, and he told me there are two reasons for why Dan implemented Payoneer as an additional payment option:
1: To decrease the time funds require to land in your bank account as Dan sends international wires while Payoneer sends local wires
2: Eliminate intermediary bank fees
I am not very familiar with Payoneer, but you may recall Payoneer once (briefly) offered an escrow service for domain name sales. Customers who receive payouts to their banks can choose to connect an existing Payoneer account or create a new Payoneer account via their onboarding program if they want to take advantage of the new partnership.
The subsequent email clarified that customers who want to continue to be paid via bank wire the way they have been paid may opt to not update anything. Since I have not worked with Payoneer before, with the exception of their escrow service several years ago, I intend to keep the status quo for my bank wire payout information. If I learn of an advantage to using Payoneer, I may change my mind.
Here’s the initial email announcement from Dan.com:
We’re excited to announce a new partnership with Payoneer!
Payoneer handles bank payouts and more for millions of marketplace users of platforms like Airbnb and Amazon.
From today on, all Dan bank payouts are handled by Payoneer. For you, this means that in order to be able to receive bank payouts, within 7 days, you have to either connect your existing Payoneer account to your Dan account or create a new account via our onboarding program.
Head to your payout settings right away to get everything set up!
Shortly after receiving this email, Dan.com sent an email with some clarifications about the update: “Additional clarification about bank wire payouts | Dan.com.”
We’d like to correct something about the messaging you’ve received about our Payoneer integration.
The normal bank wire flow that you’re used to will still be available for our users and we will not force any seller to use Payoneer. If you do not wish to work with Payoneer, nothing changes for you. Simply do not create or connect a Payoneer account and your next payouts won’t be impacted.
We will make this clearer in your payout settings so you can choose explicitly if you wish to receive bank wires from Dan or Payoneer. Each option has its advantages and disadvantages, however, as always you decide.