6 Top International Payment Methods for Freelancers

Ch Zubee July 12, 2023Last Updated: August 27, 2023

Image Credit: Google/International Payment Methods For Freelancers

Freelancing is a growing trend in Pakistan, and many talented individuals can now offer their services to clients worldwide. However, receiving international payments can be difficult, as Pakistan has limited banking options and complex currency exchange regulations.

In this article, we will explore the different methods freelancers in Pakistan can use to securely and efficiently receive international payments. We will discuss the pros and cons of each method so that freelancers can choose the best option for their needs.

Table of Contents

Definition of International Payment

International payment transfers money between people, businesses, or organizations in different countries. It can settle various transactions, including trade, investment, and cross-border services.

There are many different ways to make international payments, including:

Wire transfers are the most common method for sending large sums internationally. Wire transfers are typically fast and secure, but they can be expensive.
Electronic funds transfers (EFTs): This is a less expensive way to send money internationally than wire transfers. EFTs can take a few days to process but are relatively fast and secure.
Online payment systems: Several online payment systems allow you to send money to people in other countries. These systems are typically easy to use and relatively inexpensive.
Credit cards: You can also use your credit card to make international payments. However, credit card companies typically charge high fees for international transactions.
Checks or letters of credit: Checks and letters of credit are less common for international payments. However, they can be used in some cases where other methods are not available.

The money in an international payment can be converted into different currencies using exchange rates. Exchange rates fluctuate frequently, so checking the current rate before paying is important.

International payment methods:

Here are some of the most popular International payment gateways in Pakistan. These are the following;

1. Payoneer

Payoneer is a popular international payment method that allows freelancers to receive payments from clients worldwide. It provides a virtual U.S. bank account that can be used to withdraw funds to a local bank account in Pakistan or to make online and offline purchases with a prepaid MasterCard.

Payoneer is accepted on all major freelancing platforms, including Upwork, Fiverr, PeoplePerHour, and Freelancer. It supports multiple currencies, including USD, GBP, and EUR. Freelancers can send invoices to clients directly through Payoneer, or they can send invoices to businesses’ Payoneer accounts.

Payoneer sets up two receiving accounts for each user: a U.S. bank account with First Century Bank and a U.K. bank account with Barclays. There are no fees for transferring funds between these two accounts. Payoneer also charges minimal withdrawal fees, which all Pakistani banks accept.

Here are some of the benefits of using Payoneer:

Receive payments from clients all over the world
Withdraw funds to a local bank account in Pakistan
Make online and offline purchases with a prepaid MasterCard
Accepted on all major freelancing platforms
Supports multiple currencies
Low fees
Accepted at all Pakistani banks

Payoneer is a great option if you are a freelancer who needs to receive payments from clients worldwide. It is easy to use, affordable, and widely accepted.

2. Local bank transfers

Freelancers can provide their international clients with their local bank account details to receive direct transfers. This is a convenient option, but it may involve additional fees for currency conversion and international wire transfers. Before using this method, it is important to check with your bank about their international transaction policies and fees.

You can find this option on freelancing platforms such as Upwork and PeoplePerHour. However, it is not recommended because of the high transaction fees.

Here are some of the potential fees associated with local bank transfers:

Currency conversion fees: When you receive a payment in a currency other than your local currency, your bank may charge a fee to convert the funds into your local currency.
International wire transfer fees: Your bank may also charge a fee to process an international wire transfer.
Other fees: Other fees may be associated with local bank transfers, such as fees for receiving foreign payments or maintaining an international bank account.

Considering using local bank transfers to receive payments from international clients, it is important to factor in the potential fees involved. In many cases, there are better and more affordable payment methods available.

3. TransferWise

TransferWise (formerly TransferWise) is a convenient and accessible platform for international payments. You can receive payments even if you don’t have a TransferWise account. To do this, clients must log in to wise.com and provide their details during their initial setup.

Payments received through TransferWise can be directly deposited into your local bank account, making it convenient for users worldwide. However, it is particularly beneficial for clients in the U.K.

To get started, you will need to provide the following information:

Your name (first and last)
Your father’s name
Your CNIC (National Identification Card Number)
Your IBAN (International Bank Account Number)
Your phone number
Your email address
Your date of birth
Your country
Your city
Your postal code
Your region

If you are in Pakistan, you can also create a TransferWise account and use it similarly to Payoneer. By signing up on TransferWise now, you can enjoy a fee-free transfer of up to 500 GBP.

Here are some of the benefits of using TransferWise:

A convenient and accessible platform for international payments
Payments can be directly deposited into your local bank account
Particularly beneficial for clients in the UK
Fee-free transfer of up to 500 GBP for new users in Pakistan

4. Skrill

Skrill is an online wallet that allows you to send and receive money worldwide. It is a convenient and secure way to manage your finances, and you can register for an account online.

While Skrill does not support Pakistani Rupees as a base currency, you can hold Pakistani Rupees in your Skrill account. However, you must convert any funds you add to your Skrill wallet into one of the world currencies that Skrill supports.

Here are some of the benefits of using Skrill:

Convenient and secure way to send and receive money worldwide
Easy to register for an account online
Supports a wide range of currencies
Low fees

Skrill is a good option if you want a convenient and secure way to manage your finances. However, remember to convert any funds you add to your Skrill wallet into one of the world currencies Skrill supports.

5. Xoom.com (PayPal Service)

Xoom.com is a PayPal service that allows you to receive international payments. You can use Xoom to receive payments into your local bank account, making it a convenient option for receiving funds.

To start receiving payments through Xoom, you will need to provide the following information:

Your name (first and last)
Your father’s name
Your CNIC (National Identification Card Number)
Your IBAN (International Bank Account Number)
Your phone number
Your email address
Your date of birth
Your country of residence
Your city
Your postal code
Your region

Once you have provided this information, you can receive Xoom payments. Payments will be deposited into your local bank account within minutes.

Xoom is a secure and convenient way to receive international payments. PayPal’s security measures protect your information, and you can track the status of your payments online.

Here are some of the benefits of using Xoom to receive international payments:

Convenient: Payments are deposited into your local bank account within minutes.
Secure: Your information is protected by PayPal’s security measures.
Trackable: You can track the status of your payments online.
Affordable: Xoom’s fees are competitive.

Xoom is a great option if you are looking for a convenient and secure way to receive international payments.

6. Western Union

Western Union is a trusted way to send and receive money worldwide. To receive money through Western Union, you will need to provide the following information:

Your full name
Your location

Once the sender has started the transaction, you will receive a Money Transfer Control Number (MTCN) from them. You can then visit your local Western Union branch and present the following documents to collect the funds:

A copy of your CNIC (National Identification Card)
The MTCN that you received from the sender
Your phone number

You can receive the payment conveniently at your local Western Union branch by presenting these documents.

Here are some additional details that you may find helpful:

Western Union has over 500,000 agent locations in over 200 countries and territories.
You can send money online, in person at an agent location, or through the Western Union app.
The fees for sending money through Western Union vary depending on the amount of money you are sending, the destination country, and the payment method you choose

Payment Methods for Pakistani Freelancers

Freelancers in Pakistan have a variety of local payment methods to choose from. Here are some of the most popular options:

Bank transfers: This traditional payment method is still widely used in Pakistan. You can transfer money to your bank account from any local bank.
Mobile payments: Mobile payment services like JazzCash, EasyPaisa, and UBL Omni allow you to receive payments through your mobile phone. This is a convenient and secure way to receive payments.
Digital payment platforms: NayaPay, SadaPay, SadaBiz, and Raast offer a more modern way to receive payments. These platforms are easy to use and offer a variety of features, such as QR code payments and instant transfers.

Which payment method is right for you?

Your best payment method will depend on your needs and preferences. Bank transfers may be a good option for a secure and traditional payment method. Mobile or digital payment platforms may be a better choice if you want a more convenient and modern way to receive payments.

Research and compare fees before deciding, no matter which payment method you choose.

Considerations and Tips

Transaction fees: When choosing an international payment method, it’s important to consider the transaction fees associated with each option. Some platforms may charge fees for receiving, converting, or withdrawing funds, which can impact your overall earnings.
Exchange rates: Exchange rates can also greatly impact your earnings, so keeping an eye on them is important, especially when converting funds from foreign currencies to Pakistani Rupees. You can compare rates from different sources to ensure you get the best value for your money.
Legal and regulatory compliance: It’s also important to familiarize yourself with the legal and regulatory requirements of receiving international payments in Pakistan. Stay updated with any changes in policies that may affect your payment methods.
Consultation: If you’re unsure which international payment method is right for you, consulting with other freelancers or financial advisors with experience in this area is a good idea. Their insights and experiences can provide valuable guidance in making the best decision for your needs.

Conclusion:

Freelancing has become increasingly popular in Pakistan, but receiving international payments can be challenging due to limited banking options and currency regulations. However, several platforms and services can help freelancers overcome these hurdles.

For international payments, platforms like Payoneer, TransferWise, Skrill, Xoom.com, and Western Union offer secure and convenient ways to receive money from clients worldwide. For local transactions, bank transfers, and mobile payment services like JazzCash, EasyPaisa, UBL Omni, NayaPay, SadaPay, SadaBiz, and Raast provide seamless solutions.

When choosing a payment method, it is important to consider transaction fees, exchange rates, and legal compliance. Freelancers can get advice from experienced freelancers or financial advisors to help them choose the best payment method for their needs. By carefully considering their options, freelancers can ensure they receive their payments quickly and easily and comply with all relevant laws and regulations.

Ch Zubee July 12, 2023Last Updated: August 27, 2023