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Payment Gateways for Indian Freelancers
An important decision to make, understanding and choosing the right from the available payment gateways for Indian freelancers. With the rise of remote work and freelancing, more and more Indians are earning money online through freelance marketplaces, content writing, social media marketing, web development, and more.
Getting paid promptly and securely is crucial when freelancing. The payment gateway you use can have a big impact on factors like:
- Fees and currency conversion rates
- Payment speed
- Accepted payment methods
- Fraud protection
Selecting the best payment gateway for your needs can save you time and money. The wrong gateway can result in high fees, delays in receiving payments, or security issues.
This article will provide an overview of the top payment gateways for Indian freelancers. We’ll explore the features, fees, and pros and cons of each gateway. Read on to learn which one is the best fit for your freelance business.
PayPal
PayPal is one of the most popular online payment platforms worldwide and is commonly used by Indian freelancers to receive payments from international clients.
Overview and features
- Allows you to accept payments from clients in over 200 markets via credit card, debit card or PayPal balance.
- Supports 25 currencies including USD, EUR, GBP, CAD, AUD, and more.
- Send and receive money for free when transferred between PayPal accounts. A fee applies when transferring to the bank account.
- Offers various integration options – can be integrated into your website, invoice or proposal workflow.
- Mobile app is available for iOS and Android.
- Provides purchase protection for digital goods and services.
Fees and charges
- No monthly fees but has a transaction fee per payment received:
- Domestic payments: 3.4% + fixed fee
- International payments: 4.4% + fixed fee
- For deposits to bank account: 0.9% conversion fee (waived for Premier/Business accounts)
Pros and cons for Indian freelancers
Pros:
- Widely recognized and accepted globally. Clients likely already have an account.
- Easy integration and payouts in USD, EUR, GBP.
- Offers protection for digital goods and services.
Cons:
- Relatively high transaction fees compared to India-based gateways.
- Restrictions and blocks on accounts receiving frequent payments.
- Limited INR payout options – only supports bank transfer, not UPI.
Payoneer
Payoneer is a financial services company that provides online money transfer and digital payment services. It allows you to receive payments from international marketplaces like Upwork, Fiverr etc directly into your Payoneer account.
Overview and Features
- Payoneer provides a virtual US bank account and Mastercard debit card that can be used for online transactions and ATM withdrawals.
- It supports payouts in over 150 currencies and funds can be withdrawn to a local bank account in over 50 countries.
- You can receive payments from international clients directly into your Payoneer account via bank transfer, debit/credit cards etc.
- The funds can then be withdrawn to an Indian bank account either via ICICI Bank or Axis Bank at very competitive rates.
- Payoneer also provides working capital loans called Payoneer Capital to help smooth out cash flows for freelancers.
Fees and Charges
- Opening a Payoneer account is free but maintaining it costs $3/month if unused for 3 months.
- Receiving money into Payoneer and transferring it locally is usually free.
- Withdrawing money from Payoneer to an Indian bank account costs 3.9% as a processing fee.
- The withdrawal fee is capped at $5 for transfers above $500.
- ATM withdrawal costs $3.15 per transaction plus currency conversion fees.
Pros and Cons for Indian Freelancers
Pros
- Fast and low-cost way to receive international payments compared to PayPal or Wire Transfers.
- Can withdraw in Indian Rupees to local bank account easily via ICICI or Axis bank partnership.
- Provides a US bank account and debit card for easy online/POS transactions.
- Capital loans help manage cash flow for freelancers.
Cons
- 3.9% withdrawal fee to an Indian bank account is still quite high.
- Limited payment options – only bank transfers/cards supported, no e-wallets or UPI.
- Debit card use is subject to cross-border fees and currency conversion charges.
- Low $3K per month limit for new accounts.
Transferwise
Transferwise is a popular online money transfer service that allows you to send and receive money across borders. It offers a fast, low-cost way for freelancers in India to get paid by clients worldwide.
Overview and Features
- Transferwise uses the real mid-market exchange rate with a small, transparent fee. This means you get a much better exchange rate compared to traditional banks.
- It supports over 70 currencies and transfers to over 200 countries. You can hold balances in multiple currencies.
- The process is very simple. You just link your Indian bank account, then receive transfers directly from clients abroad.
- Transfers arrive in 1-3 working days on average.
- You get alerts on the status of your transfers via email and in-app notifications.
- Their multi-currency debit card lets you spend money directly in several currencies.
Fees and Charges
- Instead of a large foreign transaction fee, Transferwise charges a small, upfront transfer fee – usually 0.5% to 1% of the transfer amount.
- There are no hidden charges. You can calculate the exact fees before initiating a transfer.
- For receiving money in India, there are no incoming fees.
- The fee depends on the currency, amount, and destination country. Fee slabs can reduce costs for larger transfers.
Pros and Cons for Indian Freelancers
Pros
- Excellent exchange rates help maximize earnings
- Low-cost way to receive international payments
- Fast transfers compared to traditional wire transfers
- Easy to track payments and set up recurring transfers
- Can hold funds in multiple foreign currencies
Cons
- Cannot receive real-time transfers via credit card
- Limited payment options – bank transfers only
- Need to link Indian and foreign bank accounts
- Additional verification steps may be required
Overall, Transferwise is a top choice for Indian freelancers due to its great rates, transparency, speed and multi-currency features. The pros outweigh the limitations for receiving international client payments.
Google Pay
Google Pay is a digital wallet platform and online payment system developed by Google. It allows users to make contactless payments in stores as well as send and receive money from other users.
Overview and Features
- Google Pay is built into the Google Chrome browser on desktop and Android devices. Users can easily set up their Google Pay account by adding a debit/credit card.
- It supports UPI and tokenization, allowing for quick and secure payments. Users just need to unlock their phone and tap on a store’s POS to pay.
- Users can also request and send money to friends and family easily via Google Pay.
- Merchants can use Google Pay for Business to accept digital payments on their website or in-store.
Fees and Charges
- Google Pay is free to use for sending and receiving money from other users.
- Merchants need to pay standard payment gateway transaction fees for each sale. This is usually 1-2% plus taxes. There are no setup costs or monthly fees.
Pros and Cons for Indian Freelancers
Pros
- Easy and quick to setup and use
- Secure UPI and tokenization technology
- Accept payments from clients directly into bank account
- No transaction fees for receiving payments
Cons
- Cannot withdraw money directly to a bank account, need a debit card
- Limited payment options for international clients
- Merchant transaction fees are comparable to other gateways
- Not widely used outside India
Skrill
Skrill is an online payment platform and digital wallet service owned by Paysafe Group. It allows users to send and receive money online, and acts as a payment gateway for merchants.
Overview and Features
- Skrill offers a multi-currency account to hold funds in over 40 currencies. This allows Indian freelancers to receive international payments without conversion fees.
- It provides a prepaid Mastercard linked to your Skrill wallet. This can be used for ATM withdrawals or online/in-store payments.
- The Skrill mobile app allows managing transfers and payments on-the-go. It has touch/face ID login and bill split features.
- Merchant services like Skrill Quick Checkout and payment buttons help integrate Skrill payments into your website or invoices.
Fees and Charges
- Personal account registration is free. However, there are fees for loading funds and transferring out of Skrill.
- Inbound transfers from debit/credit cards have a 1.9% + €0.29 fee. Bank transfers incur a 1.45% fee (min €10).
- Withdrawing locally to an Indian bank account has a 2.99% + ₹50 fee. Sending money abroad costs 0.5-2% + ₹200 per transfer.
- The Skrill debit card has a $10 issuance fee. ATM withdrawals cost $3 + 2.25%, and there’s a 3% foreign exchange fee.
Pros and Cons for Indian Freelancers
Pros
- Good for international client payments. Low fees for receiving funds.
- Provides a local Indian bank account for Rupee withdrawals.
- Debit card allows cash access from ATMs.
- User-friendly mobile app and payment integration options.
Cons
- Expensive fees for some transactions like local withdrawals.
- Requires identity verification which can take 1-3 days.
- Subpar customer service with complaints about account freezes.
- Not beginner friendly compared to PayPal or Transferwise.
Payza
Payza is an online payment platform and processor that allows users to make and receive payments internationally. Some key things to know about Payza for Indian freelancers:
Overview and Features
- Payza offers personal and business accounts. Business accounts allow receiving payments from over 190 countries.
- Funds can be loaded to Payza via credit/debit cards, bank transfers, and other online payment methods.
- Withdrawals from Payza to bank accounts and debit cards are available.
- The platform supports payments and transfers in over 40 currencies, including INR.
- Payza offers multi-language support.
Fees and Charges
- Personal accounts have no monthly fees. Business accounts have a $29.95 monthly fee after the first 3 months.
- Loading funds from credit/debit cards has a fee of 2.9% + $0.30 per transaction. Bank transfers are free.
- Sending payments to other Payza members is free. Sending to non-members incurs a fee of 0.9% – 2.9% per transaction depending on amount.
- Withdrawing to bank accounts costs $1 + 1% of withdrawn amount. Withdrawing to debit cards costs 2.9% + $0.30 per transaction.
Pros and Cons for Indian Freelancers
Pros:
- Supports INR for easy management of Indian freelancing income and client payments.
- Allows fast access to funds via withdrawals to Indian bank accounts and debit cards.
- Offers a multi-currency account to get paid by international clients.
Cons:
- Monthly fee for business accounts can add up.
- Withdrawal fees to bank accounts eat into freelancing profits.
- Lacks integration with major Indian payment systems like UPI.
Razorpay
Razorpay is an Indian payment gateway that allows easy collection of payments via cards, netbanking, UPI and popular wallets. It provides a seamless checkout experience and is optimized for mobile use.
Overview and Features
- Seamless integration with over 100 platforms and plugins. Easy to add payment buttons or links.
- Supports all major payment methods – credit cards, debit cards, net banking, UPI and popular wallets.
- Clean and optimized checkout user interface built for mobile use.
- Dashboard to view transactions, generate reports and reconcile payments.
- Additional features like subscriptions, recurring payments, pre-authorization flow and more.
Fees and Charges
- 1.9% – 2.9% transaction fee + GST on successful payments based on volume
- No setup fees, monthly fees or hidden charges
- No fee for failed transactions
Pros and Cons for Indian Freelancers
Pros
- Easy integration and mobile optimized checkout flow
- Wide range of payment methods supported
- Competitive pricing compared to other gateways
- Excellent support and documentation
- Built specifically for the Indian market
Cons
- Limited payment methods for international payouts
- Higher transaction fees compared to gateways like PayPal or Transferwise
- Limited reporting capabilities compared to other gateways
- Can only accept Indian bank accounts for settlements
Overall, Razorpay is a great option for Indian freelancers focused on the domestic market. The easy integration, mobile focus and competitive pricing make it a top choice. For international payments, other gateways may be preferable.
PayTM
PayTM is one of the most popular mobile payment apps in India. It allows users to make quick payments using their mobile, pay bills, book tickets, and more. PayTM has emerged as a top choice for Indian freelancers due to its wide adoption and seamless integration with bank accounts.
Overview and Features
- Instant money transfers using UPI
- No transaction charges for customer to customer transfers
- Option to create a PayTM wallet and store money
- PayTM payment gateway to receive payments from clients
- In-app messaging to communicate with clients
- Book movie, travel, and other tickets directly through the app
Fees and Charges
- No fees for customer to customer money transfers
- 1% charge for deposits into PayTM wallet using credit card
- 1.75-2% transaction fee when receiving payments from international clients
- 1% charge when transferring money from PayTM wallet to bank account
Pros and Cons for Indian Freelancers
Pros
- Easy and fast way to get paid by clients in India
- Wide user base increases chances client already has PayTM
- Seamless integration with bank accounts
- Low fees for domestic money transfers
Cons
- Cannot receive payments from international clients directly
- Transferring from PayTM wallet to bank has a 1% fee
- Limited customer service support channels
Pay and Get Paid with Safe Payment Gateways
As an Indian freelancer, choosing the right online payment gateway to receive your earnings is crucial. The payment gateway should offer fast transfers, minimal fees, multiple payout methods, and good customer support.
Based on the analysis above, here are some top recommendations:
- PayPal is the most popular international payment gateway, with fast transfers and a range of payout options. The fees are reasonable and it offers strong fraud protection. However, currency conversion fees apply.
- Transferwise is the best option to convert currencies and send funds abroad at the real exchange rate. The fees are very low but bank transfers and limits apply.
- Razorpay is the leading Indian payment gateway for fast, easy domestic payments. It offers competitive pricing and integration options. But international payouts are limited.
- Payoneer provides multiple payout options, low fees, and good customer service. But transfers can be slow and cards have usage fees.
- Google Pay is great for domestic freelance earnings collection via UPI at no cost. But frequent transfers and limits apply.
To summarize, evaluate your specific needs and volume of international versus domestic earnings. Select a payment gateway or a combination that offers the best features, convenience and value for your freelance business.
Note: Details about related Payment Gateways given above are subject to change, so please refer to their official websites to know more about them and the updated details.
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