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Payoneer Raises Fees for Pakistani Users: A Setback for Freelancers
In a significant move, Payoneer, a widely used online money transfer platform, has increased its transaction fees for users in Pakistan. This decision has raised concerns, particularly among freelancers who rely on Payoneer for receiving payments from international clients. As of October 20, 2024, Payoneer will be charging a 3% transaction fee on every payment, plus a fixed fee of $0.49 for USD-based transactions.
A 50% Fee Increase: What Has Changed?
Previously, the transaction fee stood at 2%, but the recent update raises it to 3%, making it more costly to send or receive money. Along with this percentage-based fee, users will also incur a fixed fee for each transaction, depending on the currency involved. The new fixed fees are as follows:
- $0.49 USD for USD transactions
- 0.39 GBP for transactions in British pounds
- 0.45 EUR for transactions in euros
- 0.75 AUD for Australian dollars
- 0.67 CAD for Canadian dollars
- 73.76 JPY for Japanese yen
This fee adjustment applies to payments made via debit or credit cards, as well as payments received through Payoneer’s Request a Payment or Initiate a Payment options.
Effective Date: October 20, 2024
While this change has raised concerns, users have some time to adjust. The updated fee structure will take effect on October 20, 2024. Until that date, the current fees will remain in place. After the new fees come into play, they will be reflected on Payoneer’s Fee Page under account settings.
Why Payoneer Is Raising Fees
According to Payoneer’s official statement, the fee increase is part of a periodic review aimed at maintaining their service quality in a changing market. Although the hike is significant, Payoneer has emphasized that it remains committed to supporting business growth for its users.
Here’s what Payoneer said about the change:
“To ensure we can keep giving you the best service, we periodically review our fees as the market changes. While these adjustments are necessary, our commitment to empowering your business growth remains our top priority.”
Impact on Freelancers and Businesses
For many Pakistani freelancers, this fee increase could represent a substantial financial burden. Freelancers who already work with thin profit margins will see their income affected, especially when processing multiple small payments. Local businesses that rely on Payoneer for international transactions will also need to adjust their pricing or find alternative payment solutions to absorb the increased costs.
Options for Freelancers Moving Forward
As the new fee structure takes effect, freelancers may explore several options:
- Incorporating fees into project pricing: To offset the cost, freelancers can raise their prices slightly.
- Using alternative payment methods: Other platforms like Wise or PayPal could offer competitive rates and help reduce transaction costs.
- Negotiating payment terms: Freelancers can ask clients to pay in larger sums less frequently to minimize the number of transactions subject to fees.
Conclusion: A Time to Reassess Payment Strategies
Payoneer’s fee hike is a clear reminder for freelancers and businesses to regularly review their payment strategies. While Payoneer continues to offer reliable services, the increased fees may encourage users to explore alternative solutions. For those who choose to stay with Payoneer, adjusting pricing models or payment frequencies could help mitigate the impact of this fee change.
Ultimately, staying informed and proactive is the best way to navigate this financial shift without compromising business growth.
