Being a freelancer, you don’t need to wait for month end to get a credit in your bank account but what options are available for freelancers in India
The best part of being a freelancer is, you don’t need to wait for the month end to get a credit to your bank account but as a freelancer when you have so many payment options available, it can be tough to decide the best ones.
So if you are an India freelancer who are looking to receive payments, here are the 9 payment options I use or has used them in the past.
Everyone knows about PayPal. It is one of the most widely used payment methods by clients in the US. So PayPal is the most popular payment options among Indian freelancers to receive payments. The simplicity of use of PayPal that anybody with an email address can receive payments in India.
Setting up an Indian PayPal account requires PAN Card as well as verified bank account but it does not take more than a couple of days to get everything up and running including bank verification.
PayPal charges a fee of close to 5% but has a good buyer and seller protection to prevent any fraudulent or suspicious transactions.
I did use Payoneer long time back. Back then it provided a debit card for its account and you could withdraw money directly from ATM. Now it works in India such that your Payoneer account is linked to your bank account and any funds received in your Payoneer account gets deposited into your bank account.
You can request payments from clients via Payoneer and clients can pay you via their bank account. Once the payment is credited into your Payoneer account, it is directly transferred to your bank. The forex rates for Payoneer are much better than PayPal and have much fewer fees than PayPal as well. I have reactivated my Payoneer account and I ask all my clients to pay with Payoneer.
TransferWise is one of my favorite and preferred method of getting paid and it is because it has very low or no fees, very good forex rate and processing very fast.
A client of mine used to pay me using TransferWise at around 2 PM Indian time and many times I saw the funds hitting my bank account at 5 PM the same day and if not latest by next morning.
The charges are so low and forex conversion rate is so good that you can offer a good discount to your clients. A win-win situation for all.
Back then Xoom was similar to TransferWise but with an exception that US clients could fund the transaction with their PayPal account.
It has now been part of PayPal family now and it promises much better rates.
I use Instamojo for selling digital products as their fees are very low compared to ClickBank.
The best part of Instamojo is you can create a payment link which you can share with your clients and they can pay any amount they want. As an example I share imojo.in/@shabbirbhimani and clients can make the payment to me.
I have few Indian clients who cannot pay me in PayPal due to restrictions of India to India PayPal payment and they can use Instamojo if they prefer paying using a credit card.
It’s a payment solution for digital products as well as client services.
Upwork has a direct bank payment option to transfer the available account balance directly to the bank account. It is always preferred to use the bank as payment method instead of using PayPal or Skrill or Payoneer to avoid double fees being charged, once by Upwork and then by PayPal.
Though I personally have never used freelancer.com my past companies where I was involved as a partner has received payments from Freelancer.com. As with Upwork, it is always preferred to use bank transfer option as to save on the double transaction fees.
Freelancer offers weekly transfer of payment to the bank account and you can request your payout latest by Sunday and it is processed every Monday.
Skrill (formerly Moneybookers) is the second most widely accepted payment solution.
Skrill has an advantage where an Indian account can send money to other Indian Skrill account which is a limitation in PayPal. The limitation is through RBI and not sure why it is not a limitation in Skrill and could be because they do not process the payment in Indian rupees.
PPH, similar to Upwork has an option of direct fund transfer to an Indian bank account. It is always preferred to use the bank as payment method instead of using an intermediate payment processor like PayPal or Payoneer to avoid double fees being charged, once by PPH and then by the intermediate payment processor.
10. Western Union
WU is not a bonus payment option because WU is not a payment option for Indian freelancers. It only allows personal payments to India and that too only 12 payments in a calendar year.
It is for payments from abroad to friends and family only.
Further Reading …