We have just partnered with Payoneer in a bid to expand and diversify our payment mechanisms. The vision behind this partnership is very deep if one gives it some thought. If you have followed our previous posts , then you know the current psyche of freelancing in India is in palpable good form.
The Payoneer India Launch and its consequent partnership with us is step towards giving the rising Indian freelancers the power to reach distant and rare opportunities. It is a procedure which should empower these freelancers to indulge in work all around the globe and receive payments in their own currency and in their personal savings account at the click of a button.
The Payoneer India Launch is all about maximizing your online capabilities and scope
The multi-trillion dollar a year cross-border payment industry is expanding at an annual rate of 10 per cent and is in the process of fundamental change. The idea is to introduce more freedom and transparency in global cross-border payments without compromising on the security of such transactions. This will result in increased opportunities of business and freelance between nations and in turn help their overall economies.
Not till recently, this industry was dominated by traditional correspondent banking relationships but this is changing as more nimble Payment Service providers enter the market with innovative alternative payment methods that compete with these traditional offerings on many fronts like cost, speed, efficiency and quality of service.
For Truelancer, this swift partnership just days after the Payoneer India launch means only one thing which is increased support and infrastructural help to our pool of talented freelancer so that they can keep delivering quality work, make a name for themselves and form comprehensive networks.
This is important because Indian freelancers today are participating in a lot of work which comes down from other parts of the world like Europe, Australia and America. Thus many a times it happens that challenges arise when it comes to traditional cross-border payments. This creates unnecessary annoyance for the client and payment hassles and financial stress for the freelancer.
With Payoneer as an alternative to these traditional banking channels many such issues can be resolved.
Before knowing how first let us see what are the different issues which arise with these traditional channels
- Absence of direct relationships with downstream banks
As most of these channels are not directly linked to banks the initiator cannot trace the transactions in case of issues like when payment is not received.
- Time Taking Transactions
Cross-border channels typically take days or weeks to clear, and the period is often not known by the parties in advance.
- Lack of Standards
Due to the presence of multiple intermediaries it gets difficult to reliably carry data to the receiving party which produces hassles in steps like payment tracking.
- High Cost of transactions
The transactions can get very expensive because of the large number of intermediaries involved. There are always large fees involved when it comes to exchanging currency and other such transactions. The World Bank estimates that on average the remittances costs per transaction are 7.99% of the total amount. That is hefty!
- Lack of transparency
It is often unclear which party is responsible for exchanging currency and what margin is being added above the inter-bank rate.
- KYC confusions
Know Your Customer guidelines vary from country to country. These regulations often interfere with the size and scale of transactions which can take place over your account. If any adherence to national standards fail then compliance confusions may result in penalisation and deactivation.
- Lack of customer support
Tracking and addressing of issues and doubts can be tough when you have representatives who are unfamiliar with your language or with the problem.
- Preferences and Practices
Choices of payment are affected by prevailing environments like:
- Beneficiaries living in un-banked regions prefer prepaid-cards
- Beneficiaries living in countries with strict currency controls prefer LVPN to avoid high taxation
- Freelancers like those on Truelancer will prefer electronic wallets which provide them with liquid cash in their savings account within 24 hours.
Therefore, traditional payment channels do provide a chance to online careerists to look for opportunities across the globe but raise numerous issues when it comes to smooth cross-border payments.
With Payoneer India, we have learnt that there are certain things which one should learn and understand before making a choice of choosing a payment channel, whether traditional or alternate.
- Freelancers should understand that how cross-border payments are made. They should check whether they are paying higher fees for transactions which involve very low costs over other channels.
- The profile of payments initiated by your client may warrant using different payment methods. You must be pro-active enough to take this information under consideration when making a choice and use those channels which offer the best and cheapest services.
- You should keep in mind that each payment method has a unique set of pros and cons both, for payers and for beneficiaries and the comfort of your clients must not be ignored when choosing a payment tool.
What you should be looking for when finding a payment service provider?
- Geographic and Currency Reach
- Category of payments
- Volume and average value of payments
- Time required for funds to clear
- Finality of transactions
- Multi-lingual customer support
- Reporting capabilities to track your transactions better
What can Payoneer help you with?
- Smoother Payment Transactions
Payoneer India has come with certain benefits clearly crafted for Indian Freelancers. Earlier, you needed a prepaid card with Payoneer. That is not the case now. You can easily have the money exchanged and transferred directly into your linked bank account for lower costs. This can happen on a daily basis.
This empowers you with speedier transactions which are not the case with most other cross-border payment channels. The upper limit for transfer of funds is INR 500,000 per day and INR 2500,000 per month. I believe that is a sufficient benchmark for any Indian Freelancer.
Moreover, all payments received in USD or Euros will automatically be converted into INR and transferred onto your account.
This is added functionality as if you have an account on PayPal for instance then the process of converting the money and getting it into your bank out is manual, lengthy, time taking and costly.
- Lower Transaction Fees and Charges- Save more on Foreign Exchange and Payments
When you indulge in cross-border payments which is going to be lot when you are freelancing there are hidden fees and charges which come in as transaction costs. Statistics show that these costs can get pretty steep. The costliest average charges per transaction are $14.88 while the cheapest are $1.55. That is a great deal of variance and can result in loss of valuable money for you.
With Payoneer these costs reduce drastically. Globally it charges $5.95-$9.95 depending on the funds and on your country. This has a lower variance than other modes of cross-border payments. That means on average you save $5 per transaction i.e. INR 300. These savings increase as your earnings go up. If you know how much your bank charges on such transactions, then you can exactly know how much you save.
In India they charge only $3 per transfer to your bank account, and there are no other costs associated with the service.
They convert funds from USD to INR using rates of up to 2.75% above the official mid-market rate at the time of transfer. You can estimate mid-market rates using websites such as XE.com.
It will really Help Indian Users who receive payments from International Websites. Now they can enjoy better exchange rates and less fee.
Thus, Payoneer enables you with more control over your finances with the ability to save more.
While knowing the people and their work at Payoneer we found certain beneficial attributes of their services which could be very helpful in increasing the reach of our freelancers. That is why the successful partnership with Payoneer India provides such a great impetus to our whole vision of promoting and managing quality Asian and Indian Freelance and giving them the opportunities they deserve.
Payoneer operates on an advanced pay out platform. It has robust networking with major banks and Payment Service providers worldwide to offer a complete range of payment solutions to its customers.
You get access to a single unified interface for initiating, tracking and reconciling payments regardless of beneficiary location, payment method or currency.
The process of receiving payments in simplified and people receive funds quickly, easily and cost-effectively.
There are a host of other advantages like:
- You get a complete suite for managing global pay-outs on a massive scale
- It is powerful platform which powers mass payments in over 200 countries and in over 100 currencies.
- Funds can be sent within minutes through any one of the host of methods available. A suitable method can be chosen which is best for a given situation can be used.
- 24/7 Customer support for customers in 35 languages
- Dedicated account management
Cross-border payments can be a lot simpler with Payoneer. Clients and beneficiaries can both benefit from a comprehensive choice of payment methods and wide geographical coverage.
This is good news for our freelancers as they will soon see more opportunities from countries where freelance work is a major part of medium and large scale firms and this will help them become regular parts of multiple freelance management systems all across the globe which offers lucrative prospects on a wholesome level.
Thus, we believe that with Payoneer India, we can take Indian and Asian-Pacific Freelancing to a whole another level where freelancers can benefit from:
- Increased opportunities
- Multiple Income streams
- Increased networking opportunities
- Multiple payment channels
- More control over transaction tracking and issue resolutions
- Cost-effective cross-border payments
- And a chance to build a solid and secure freelance career with a continuous flow of promising works.
Thus, we urge our freelancers to make use of this partnership and connect yourself with Payoneer on Truelancer and hope that they will not hesitate from making efforts to utilise the opportunities which come up as a result!
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