In our previous posts about rising freelance trends in the Asia-Pacific, we saw how large the contributions of online transactions had become for the entire country’s balance sheet. The economy activity of freelancers online has rapidly increased in the recent few years because of numerous payment systems which are available on the internet.
If one looks at the statistics the extent of e-commerce penetration in these countries is paramount and this means that secure and accessible online payment channels are available.
This brings us to the question that how easy it is to get paid or pay on the internet in the entire Asia-pacific region. In this series of posts will discuss the extent of online payment freedom in major Asian countries namely India, Bangladesh and Pakistan.
For this, we first must know what are the popular online payment channels across the globe
1. Direct Bank/Wire Transfers
These are the first and still very popular mode of online payment across the globe. The reasons for them being still in use are the low transaction charges, completely secure transactions guaranteed by both banks. In many countries, this is the only available mode of the transaction too!
2. Online Merchants
Online payment merchants are also veterans in the field of online payment. Many merchants like Visa, Maestro and MasterCard have a reputation to provide secure online transactions and are the most used means to such payments too! They also have a low annual fee which makes them more popular as online modes of payment.
3. Credit/Debit Cards
These are the second most popular channels of online payment available to us. They have more utility as they can be used for wireless and cashless transactions in any major and above average outlet or store. They also carry nominal charges which are adjusted against your savings or any other account linked to that card.
When it comes to more business to business or client to worker transactions then PayPal is the world’s most widely used payment channel. It processed over $ 4 billion in payments last year. The payments are made using your existing bank account or card which is linked to your secure online account. The main attraction is that you can convert your money into any currency and carry a transaction in any country (those where PayPal is available).
The charges are a standard 2.9% + $0.30 per transaction and nothing else.
5. Google Checkout
As an answer to PayPal Google Checkout also allows users to pay for goods and services through an account connected to their Google profile. It is a very popular channel and has had an increasing number of users is because most of the people on the internet have an account on Google thus; consider it as a favourable option as it saves both time and effort.
The pricing is the same as PayPal for transactions of less than $3000. After that, the percentage slowly drops down as the volume goes up.
Payoneer is another rising platform for online transactions which is becoming increasingly popular for its simplified transfer systems. We at Truelancer recently announced that we were partnering with them to provide smooth payment and transfer systems for our increasing number of clients and freelancers.
It just requires your bank details and a swift code which is new launch in most countries and may not be available in some.
We see that these are the most popular channels which are used all across the globe to carry secure online transactions. These tools have helped clients and workers from all across the globe to connect together on a large platform and indulge in quality work relationships. This has empowered many people in remote corners of the world to gain access to the opportunities around the globe and showcase their talent.
They have given hope of monetary satisfaction to people in developing countries as freelancing has reached to very remote parts through the internet.
Now here is an infographic to show the extent of availability of these online payment channels in India
We can clearly see that while the older channels are clearly more accessible in India the newer ones like PayPal, Payoneer and Google Checkout are still making their ground and reaching out to freelancers in India.
In the coming time we are bound to see more accessibility and freedom to these channels as more and more local banks improve and expand their digital infrastructure and sync their databases with the likes of more merchants and online firms like PayPal and Payoneer.
Next we check out the extent of online payment freedom in Bangladesh and Pakistan.
A passionate Blogger and Digital Marketer