Payoneer, a leading online money transfer platform, has announced that it will more than double its fees for Pakistani users, a change that could heavily impact freelancers in the country. As Payoneer increases fees, the new monetary structure has significantly impacted the transaction costs, raising concerns about the long-term implications for businesses relying on Payoneer for cross-border payments.
Payoneer Increases Fees for Pakistani Users
As part of its revised policy, Payoneer will increase the transaction fee for Pakistani users from 2% to 3%, along with an additional fixed fee of $0.49 for payments processed in USD. The fee adjustment applies to both sending and receiving funds through debit or credit cards, as well as transactions initiated using the “Request a Payment” feature. For non-USD transactions, the fixed fee varies depending on the currency. Users will be charged 0.39 GBP, 0.45 EUR, 0.75 AUD, 0.67 CAD, or 73.76 JPY based on the transaction’s currency.
These changes, although necessary for Payoneer to maintain service quality, are expected to pose challenges for freelancers and small businesses in Pakistan, who rely on the platform for international transactions. The increase comes as a surprise to many, but only time will tell how it will affect their profit margins.
Freelancers in Trouble
The revised fee structure will take effect on October 20, 2024. Until then, users can continue to operate under the current system, but many have expressed dissatisfaction with the upcoming changes. While Payoneer claims the adjustment is part of a routine review to keep up with market shifts, freelancers are apprehensive about the increased costs, fearing it could force them to explore alternative payment platforms.
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