In a move that has sent shockwaves through Pakistan’s freelance community, Payoneer, a leading global payment platform, has rolled out a 3% withdrawal fee for users in the country. The change, implemented without prior announcement, has left many digital professionals reeling as they navigate the financial implications of the updated fee structure.
Pakistan’s freelance sector, a vital component of the nation’s growing digital economy, relies heavily on platforms like Payoneer to receive international payments. With thousands of individuals earning income from clients abroad, the sudden fee hike has raised concerns about reduced earnings at a time when economic challenges, including inflation and currency fluctuations, are already straining livelihoods.
A Steeper Cost for Withdrawals
The new fee structure, effective immediately, imposes a 3% charge on withdrawals to bank accounts in non-local currencies, such as USD, EUR, or GBP. This marks a significant increase from previous rates, which were either lower or, in some cases, waived entirely. For freelancers who frequently transfer earnings to local banks, this change could erode a substantial portion of their income.
Additionally, third-party bank transfers, which previously offered more favorable terms, now carry the same 3% fee across all currencies. Internal transfers between Payoneer accounts are also impacted: transactions in USD, EUR, or GBP exceeding 500 units now incur a 0.6% fee, while smaller transfers face a flat $3 charge (or equivalent in other currencies).
Receiving Payments Now Costs More
Beyond withdrawals, Payoneer has introduced fees for receiving payments. Transactions under $100 in USD now come with a $1 fee, while larger transfers are subject to a 1% charge. Similar fee structures have been applied to other major currencies, including EUR, GBP, CAD, AED, and AUD. These charges are in addition to Payoneer’s existing currency conversion fees, further increasing the cost of cross-border transactions.
Freelancers Voice Frustration
The lack of advance notice has fueled frustration among Pakistani users, many of whom learned of the changes only after noticing deductions in their accounts. Social media platforms and freelance forums have become hubs for heated discussions, with users criticizing Payoneer for what they perceive as a lack of transparency. “This feels like a betrayal,” said Ayesha Khan, a graphic designer from Lahore. “Every dollar counts, and now we’re losing more just to access our own money.”
For freelancers operating on tight margins, the cumulative impact of these fees could force difficult choices, such as raising rates for clients or absorbing the losses. Small businesses and sole proprietors, who also rely on Payoneer for international transactions, face similar challenges.
Economic Context Amplifies Concerns
Pakistan’s digital economy has seen remarkable growth in recent years, with freelancers contributing significantly to foreign exchange inflows. However, the country’s economic landscape remains precarious, with the Pakistani rupee experiencing volatility against major currencies. The new fees add an additional layer of financial strain for those who depend on platforms like Payoneer to bridge the gap between global opportunities and local realities.
What Can Freelancers Do?
Payoneer has advised users to review the ‘Fees’ section of their accounts to understand how the changes apply to their specific transaction patterns. The updated fee structure affects all account types in Pakistan, from individual freelancers to registered businesses.
Some freelancers are exploring alternative payment platforms, though options with comparable global reach and reliability remain limited. Others are considering adjusting their pricing models to offset the increased costs, though this risks making them less competitive in the global market.
Payoneer’s Silence
As of now, Payoneer has not released an official statement addressing the fee changes or responding to the concerns raised by its Pakistani user base. The absence of communication has only deepened the sense of unease among freelancers, who are calling for greater clarity and accountability from the platform.
For now, Pakistan’s freelancers are left to adapt to the new reality of higher transaction costs, even as they continue to play a pivotal role in the country’s digital transformation. Whether Payoneer will address the backlash or reconsider its approach remains to be seen.
