Effective Methods for Receiving Payments from Other Countries in Pakistan

Receiving payments from other countries can be particularly challenging for freelancers working in Pakistan. With the rise of digital payment solutions, it is now easier for freelancers to handle cross-border transactions. This article explores the most efficient and secure methods available, ensuring that both you and your clients can manage payments seamlessly.

SWIFT Transfers: A Reliable Option

One of the most reliable methods for receiving international payments in Pakistan is through SWIFT (Society for Worldwide Interbank Financial Telecommunication) transfers. Most banks in Pakistan are part of the SWIFT network, allowing you to receive direct international payments into your bank account. To facilitate this, you will need to provide your bank's SWIFT code, your IBAN (International Bank Account Number), and any additional relevant banking details requested by your client.

It is advisable to send an invoice via email in PDF format. Ensure the document includes all the necessary details: service description, total amount due, payment date, and the contact information of both the freelancer and the payer, along with a list of available payment methods. This transparency builds trust and ensures timely and error-free transaction processing.

Payoneer: A Secure and Flexible Payment Solution

Payoneer is another excellent option for receiving international payments. This platform offers multi-currency accounts and allows you to withdraw funds to your local bank account. Although Payoneer provides debit cards to Pakistani customers, this is not recommended due to high ATM withdrawal fees. It is better suited for collecting payments via debit/credit cards from international clients, thanks to its Request a Payment feature which is available to all account holders.

When a payment request is sent through Payoneer, the payer receives an email with instructions. They can then pay using their local bank transfer or major credit cards such as Visa, Mastercard, Discover, and American Express. This flexibility makes Payoneer a preferred choice for many freelancers in Pakistan.

Xoom by PayPal: Seamless International Payments

Xoom, a service provided by PayPal, is another efficient way to receive international payments. It allows you to receive money directly to your bank account or for cash pickup. Payers can use their PayPal account to connect with Xoom and transfer funds to you. Xoom is particularly useful if the payer prefers to use their PayPal account to make the payment.

In September 2024, Xoom introduced a special promotion: for transfers of 100 or more to Pakistan, the transfer fees are waived. This makes Xoom an attractive option for both you and your clients. Always verify the details of the payment and ensure that the invoice is clear and comprehensive to avoid any misunderstandings.

Other Payment Options for Freelancers

Besides the methods mentioned above, there are several other payment options available for freelancers in Pakistan. Here are a few:

Stripe: While Stripe is not directly available to individuals in Pakistan, freelancers with high-ticket clients may consider using it by forming a limited company in the UK or an LLC in the USA. This approach requires additional documentation, regular tax filings, and ongoing annual costs, but it enables you to accept payments via PayPal and popular local payment options. SadaPay: SadaPay offers business accounts that allow you to send digital payment requests to foreign clients. Clients can use VISA or MasterCard debit/credit cards to pay your sent payment request in their own currency, and you receive funds in PKR (Pakistan Rupees). You have the flexibility to include the fee in the invoice or a 5% fee will be automatically deducted before the funds are deposited into your account. Western Union and MoneyGram: Both Western Union and MoneyGram offer quick and reliable transfer services. These services are popular among freelancers due to their availability in many locations, making it easier to collect payments directly from clients.

Using Freelance Platforms

Several freelance platforms, such as Upwork, Fiverr, provide their own payment systems that allow you to withdraw funds directly to your local bank account or through other methods like Payoneer. If the payer does not have an account with the platform, you can create direct contracts where clients don't need to have an account with the platform, and this can also save on commission fees.

By utilizing these payment methods, you can ensure that your international transactions are secure and straightforward, enhancing both your efficiency and client satisfaction in Pakistan.