Payoneer, the global payments platform heavily relied upon by freelancers and small businesses, has introduced a sharp fee increase for its Pakistani users—prompting concern across the country’s thriving digital economy.
Effective immediately, Payoneer has implemented a 3% withdrawal fee on transactions to foreign bank accounts, marking a 50% increase from the previous 2% rate. This change has alarmed tens of thousands of Pakistani freelancers and digital professionals who depend on the platform for cross-border payments.
What’s Changed?
The revised fee structure affects several key services:
- Foreign Bank Withdrawals: Fees have risen from 2% to 3% for transferring funds in foreign currencies (USD, EUR, GBP).
- Third-Party Bank Transfers: Previously free, now carry a 3% fee.
- Internal Payoneer Transfers (USD, EUR, GBP):
- Over 500 units: 0.60% fee.
- Under 500 units: $3.00 flat fee.
- Domestic Payoneer Transfers within Pakistan: Now incur a $3.00 fee.
- Receiving Payments:
- Under $100: $1.00 fee.
- $100 and above: 1% fee.
- Other Currencies (GBP, EUR, CAD, AED, AUD): Subject to the same fee structure as above.
The most impactful change is the new 3% charge on third-party bank transfers, a service that was previously cost-free. This adjustment could significantly burden freelancers and small businesses that rely on flexible withdrawal options.
Freelancer Backlash and Economic Concerns
Pakistan is one of the top countries in the global freelance market. According to Payoneer’s 2023 Global Gig Economy Index, the country boasts over 3.8 million freelancers, contributing more than $1 billion annually to the economy.
Many professionals working in fields like software development, digital marketing, graphic design, and content creation now face reduced earnings due to the increased fees. With rising inflation and limited access to global payment gateways, the changes are seen as a blow to an industry that plays a vital role in Pakistan’s digital growth and foreign exchange earnings.
As the freelance community reels from the unexpected hike, many are now exploring alternative platforms or calling for policy-level interventions to protect one of Pakistan’s fastest-growing economic sectors.
