In Pakistan, many competent individuals are engaged in freelance work, which is becoming more and more popular. Globally, they are providing their services to clients. In any event, there are several reasons why receiving an international payment may be difficult. For example, limited options for banking and limitations on money conversion.
What are international payments for freelance?
Cross-border payments, commonly referred to as international payments, are exchanges in which the payer and the payee have distinct national bases. For companies with foreign partners, suppliers, contractors, employees, or clients, these payments are essential.
International payment methods
Pakistani freelancers frequently get foreign money using a variety of online payment channels and systems. Here are a few typical methods. There are numerous international payment channels available in Pakistan. These consist of the following items:
Elevate Pay
A relatively new fintech startup called Elevate Pay is dedicated to simplifying international payments. For Pakistani remote workers and freelancers, it is more economical. This is an explanation of what it is and how to utilize it:
What Is Elevate Pay:
A Pakistani business supported by Y Combinator that offers independent contractors US bank accounts with FDIC insurance.
seeks to facilitate the receipt of overseas payments without the need for costly fees or challenging processes.
How to Elevate Pay sends money internationally from Pakistan
Sign Up
Register for an account on their website, Elevate Pay. co. The procedure is simple to follow and just needs some basic knowledge.
Verification
Finish the verification process, which entails delivering certain identity papers.
Get your US Bank Account
A US bank account with routing and account numbers will be provided to you after verification.
Give clients or platforms who require foreign USD transfers to your account details.
Access Funds
Use local transfers to withdraw money into your Pakistani bank account, or use the Elevate debit card to make international payments.
Advantages of Using Elevate Pay:
Zero transaction fees
In the Elevate ecosystem, there are no fees associated with sending or receiving money.
Competitive FX rates
Obtain clear and interbank exchange rates for currencies.
Free US bank account
Don’t open expensive international accounts.
Free debit card
Make foreign payments both online and in-store.
Payoneer
Payoneer is a popular way for freelancers to get paid internationally. It simulates a US bank account. Payments from clients can be transferred to the freelancer’s Payoneer account, which can be funded with cash from a Pakistani local bank. Additionally, it provides a pre-paid MasterCard, enabling independent contractors to use their resources for remote and online purchases as well as cash withdrawals from ATMs. Reachable in over 150 countries. All freelance marketplaces, including Upwork, Fiverr, PeoplePerHour, and Freelancer, accept it.
You can manage different types of money US dollars, British pounds, and euros. You may send bills to particular clients using Payoneer; all you need is their names, email addresses, nations, and states. By giving the following information—the company name, website, contact name, email address, and country—you can forward the invoice to the business’s Payoneer account. Your First Century Bank US and Barclays UK bank accounts will be set up as receiving accounts by Payoneer. When transferring from one Payoneer to another, there are no fees. Minimum fees and the safest withdrawal method available. At every bank in Pakistan, it is accepted.
Transfers from Local Banks
Freelancers may provide their foreign-based clients with the details of their local bank account to receive direct transactions. However, while employing this method, there can be additional expenses related to currency conversion and international wire transfers. Finding out about the fees and regulations around overseas transactions at your bank is crucial.
- These alternatives are available on PeoplePerHour and Upwork.
- The reason for this recommendation is the transaction costs.
Transfer Wise
TransferWise—now branded Wise—offers a user-friendly platform for sending money abroad. You can get money even if you don’t have a Wise account. Only clients are needed to log in to wise.com and provide their information during the first setup. Although Wise is especially helpful for customers in the UK, its ability to deposit payments straight into your local bank account makes it easy for users everywhere.
You should first supply the following information:
- Name (First Name and Last Name)
- Father Name
- CNIC (National Identification Card Number)
- IBAN (International Bank Account Number)
- Phone Number
- Email Address
- Date of Birth
- Country
- City
- Postal Code
- Region
You can also open a Wise account and utilize it in Pakistan in a manner akin to Payoneer. Registering with Wise now entitles you to a fee-free transfer of up to 500 GBP.
Union Western
Western Union is a trustworthy money transfer service that allows you to send and receive money anywhere in the world.
To process payment with Western Union, you will need to provide the following details:
- Your Name (First Name and Last Name)
- Your Location
A Money Transfer Control Number (MTCN) will be sent to you by the customer as soon as the sender starts the transaction. To get the money, you must visit your local Western Union office and present the necessary documentation:
- A copy of your CNIC (National Identification Card)
- MTCN received from the client
- Your phone number
Presenting these documents will enable you to conveniently pick up the payment at your nearby Western Union branch.
SadaPay
For Pakistani individuals and freelancers seeking an affordable and practical way to accept overseas payments, SadaPay provides a choice. To set up your account and begin receiving cash, follow these steps:
Requirements:
National Identity Card (NIC)
Your NIC will be required for account verification.
Active mobile number
You can use this to log into your account and get transaction notifications.
Smartphone
Get the SadaPay app on Google Play or the App Store.
Steps:
Download and Install the App
Go to your app store, type in “SadaPay,” and download the app.
Open an Account
To create your SadaPay account, use the app and follow the on-screen instructions. After entering your phone number and having the OTP validate it, create a strong password.
Complete KYC Verification
For identity verification, enter your NIC details and snap a selfie. This is a necessary step to activate your account.
Upgrade to SadaBiz
After your account has been validated, choose “Upgrade to SadaBiz” under the “Settings” page. This particular account type offers better exchange rates and fewer costs for accepting foreign payments.
Get your Virtual IBAN
You will be issued a distinct virtual IBAN (International Bank Account Number) when upgrading to SadaBiz. Give your clients this IBAN so they can make international transfers.
Receive Payments
With your virtual IBAN, your clients can make international payments to you. Your SadaPay account will receive a straight credit of the amount in PKR.
Access your Funds
Your SadaPay Mastercard debit card can be used to make purchases anywhere Mastercard is accepted or to withdraw cash from ATMs. For additional transactions, you can easily move money to your local bank account.
Additional Benefits
Transparent fees
SadaPay is less expensive than regular banks because it just charges a one-time flat cost of Rs. 70 plus tax on foreign transactions.
Competitive exchange rates
Get favorable conversion rates when converting other currencies to Pakistani Rupees.
24/7 customer support
SadaPay’s website and app provide round-the-clock customer service.
Points to Remember:
- For SadaBiz accounts, the monthly cap on incoming overseas payments is Rs. 400,000.
- Ensure that when your clients give you money, they do so in the right IBAN format.
JazzCash
Even while JazzCash isn’t as flexible as SadaPay for devoted freelance use, it’s nevertheless a well-known choice for accepting foreign payments in Pakistan. Its wide network and accessibility meet a variety of purposes, even though its costs can be greater and its features less customized than those of SadaPay.
Here’s how to use JazzCash to collect foreign payments:
Requirements
Your JazzCash account number is your active Warid or Jazz mobile number. CNIC Needed for some transactions and account verification. Smartphone with optional JazzCash app enables easy access and handling of transactions.
Steps
Get your JazzCash account activated:
To activate your account, if you haven’t already, go see a JazzCash representative or use your mobile device to phone *786#. As you follow the directions on the screen, enter your CNIC.
Select the way you want to receive:
Foreign money transfer services:
Cash pickups are permitted through partnering providers like Western Union and MoneyGram. Use the JazzCash app or website to find the location of the closest agent.
Bank transfer is done directly:
Give your sender your JazzCash account number, which begins with “03”. Exchange rates and costs, however, might not be as favorable.
Obtain and use money:
When picking up cash, provide the agent with the transaction reference number you were given, and they will collect your money in PKR. For direct bank transfers, money will be automatically credited to your JazzCash account. Cash withdrawals can be made via ATMs and JazzCash agents. Online payments and smartphone top-ups can be made via the JazzCash app.
Points to remember:
Higher fees
When compared to SadaBiz, JazzCash charges more for international transactions.
Limited online payment options
Mostly concentrated on local services and cash transactions.
Complex fee structure
The kind of transaction, the amount, and the service provider all affect the fees.
Payment Options in Pakistan for Receiving Local Payments:
Pakistani freelancers can choose from several different payment options to get paid locally:
Bank Transfers
Any local bank, including Meezan Bank, HBL Bank, MCB Bank, and others, can be used to accept payments straight into your bank account.
Mobile Payments
You can receive payments comfortably using your mobile phone using services like JazzCash, EasyPaisa, UBL Omni, and others.
NayaPay, SadaPay, SadaBiz, Raast
You can receive payments directly into your accounts with even more ease and flexibility if you use platforms like Raast, SadaPay, NayaPay, and SadaBiz.
Pakistani freelancers have several options for safely and effectively receiving their profits thanks to these local payment methods.
Points to Think About and Advice:
Transaction Fees
It’s crucial to assess the transaction costs connected to any foreign payment option. Certain platforms might impose fees for receiving, converting, or removing money, which could affect total profits.
Exchange Rates
When converting money from other currencies to Pakistani Rupees, pay particular attention to exchange rates. It’s a good idea to compare prices from many vendors to make sure you’re getting the greatest deal possible.
Legal and Regulatory Compliance
Get familiar with the legal and regulatory procedures that Pakistan has for accepting foreign payments. Keep yourself informed about any policy changes that can impact your payment options.
Consultation
Consult with other independent contractors or financial consultants who have dealt with foreign transfers before. Their knowledge and expertise can be a great resource for advice on which payment option is best.
In Pakistan, freelancing has become increasingly popular; yet, receiving income from overseas can be challenging due to limited financial options and currency regulations. By utilizing services like Payoneer, TransferWise, Skrill, Xoom.com, and Western Union to facilitate foreign payments, freelancers can overcome these challenges.
For easy local transactions, there are bank transfers and mobile payment services as Raast, JazzCash, EasyPaisa, UBL Omni, NayaPay, SadaPay, and SadaBiz. It’s crucial to consider exchange fees, currency rates, and legal consistency when working as a freelancer. Seeking advice from seasoned independent contractors or financial advisors can help freelancers choose the optimal payment option for their needs and ensure their financial success.
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