How Virtual Payment Platforms Are Supporting Global Economies

The world is going local. You could be sitting in the remotest parts of the world, while working for a company located on the other side of the globe. The internet and allied technologies have well and truly enabled even the smallest of entrepreneurs and professionals go global.   Using global services like AirBnB, Uber and Etsy are possible today and collaboration across continents, countries and cities has never been this smooth.



However,  people new to the world of internet jobs, offshore projects and working with a remote partner can find the whole process intimidating at first.  The main challenge usually is the payments bits. Say, how does someone in Bangalore, India doing a project for a client in San Francisco, US receive the payment in Indian currency for work done for the American client? International bank transfers are complicated and at times not possible, wire transfers come with limitations.  For example, a minimum threshold or a family members – only rule.

Besides, when it comes to sending or receiving money from a stranger, it’s but natural to harbour a trust issue.

In fact in an age, where a regular freelancer or a company could be working with multiple clients located across the world, the importance of a common virtual platform for payment and receiving money quickly, hassle-free and from a trusted partner becomes paramount.

Enter payment platforms and Virtual Credit Cards, wherein you sign up for a platform online and attach your existing bank account details with the account and receive payments directly in your bank account in the local currency.  While Paypal is a known payment platform, digital payments have become easier and even more hassle-free with tech led platforms like Transferwise, Xoom and Payoneer, and overcome some of the limitations of PayPal – High commissions or unavailability in a few countries.

“My company did some service to a client from UAE and the invoice is around $2000, what would the cheapest and fastest way be to receive this money? Paypal takes 12 working days and Transferwise is unavailable in UAE, Bank transfers are very costly.”, asks an Indian user on Quora.

In this case, Payoneer‘s biggest benefit would be to provide a platform to freelancers to get paid by  companies in the US, EU and UK. In the scenario above, a user could send his client a bill directly from the Payoneer platform, and the Payoneer system will send an email to their client with details of the payment and several safe and secure payment options (credit card, eCheck and local bank transfer). 

Payoneer is a great option for freelancers working on websites like Odesk and Elance. “The main reason I use Payoneer is because it lets me withdraw my earnings very fast compared to other methods like Wire Transfer or Skrill. After my money is loaded I can go to my local ATM and easily withdraw cash. “, says Michael Douglas a long time Payoneer user.

Payoneer also works for making purchases from international websites, especially for small payments. ($50-$200)

Another reason why payment platforms make so much sense is the hassles involved with a conventional bank transfer. “I have had issues with both HDFC and ICICI when ever I try to get remittance from UK. They always want so many reference numbers. I have switched to Payoneer now and payments are least of my troubles now!”, says Sheetal Arora, a graphic designer who often works with US clients.

In fact, a lot of media companies whose primary source of revenue is through advertising are working with international media companies like Taboola, Outbrain and many ad networks. When the amounts are small, but payments are regular, Payoneer helps with easy payments. 

For large amounts $1000+ , wire transfers are recommended, because wire transfers have a fixed fee ($25 or less) and you can transfer large amounts at once. However, wire transfers take 5-10 days to reach your bank, while payments through a PayPal or Payoneer may come into your bank account within the same day.

No matter what payment partner you choose, the fact that transfer of money has become this easy, quick and largely trustworthy, is a sure sign that a true work- global- live – local economy has arrived.

You can visit Payoneer here.