There has been an increase in the number of freelancers in Dubai over the last couple of years. Both professionals and students alike, are turning towards the gig economy as both a full-time and part-time source of income. The shift to this upcoming workforce era has also necessitated the introduction of new payment (cashless) methods.
Companies now prefer working with freelancers due to various reasons, including efficiency and convenience. The internet has enabled these companies and individuals to outsource their work from freelancers all over the world.
However, even with the flexibility of the gig economy, we still hear complaints about freelancers not getting paid on time. The best way to go around this is to use better payment methods used to pay freelancers. If you’re not sure what’s out there and what the best options are, here are five ways freelancers in the UAE can get paid:
PayPal is probably the most widely used payment method for both companies and freelancers worldwide. Having been operational since 1998, PayPal currently serves over 200 million users, more than 200 markets, and supports 25 different currencies.
Clients can pay their freelancers electronically as soon as the work has been done (or submitted and approved). The money appears instantly on your PayPal account once a payment has been made. One has the option to withdraw the funds to their bank account and can also get linked to their debit and credit cards.
Some countries also have integrated PayPal with local money transfer services such as M-Pesa, where users can get the funds easily. However, in some parts of the world, such as the UAE, there are certain restrictions to take note of. For instance, you cannot withdraw funds from your PayPal, not unless it is a business account. Moreover, you may have to present your freelancer’s license to Network International to be able to withdraw the funds from your PayPal account.
- Available in over 20 different currencies
- Send and receive money in 200 countries
- Easily send and track invoices
- Immediate transfer of funds
- The transaction fees are quite high
Founded in 2005, Payoneer is still regarded as a new player in the world of electronic payments. The platform enables fast and seamless cross-border transactions. Payoneer supports over 150 currencies and is available in 200 countries.
What makes this platform popular is that regardless of where you reside, you will receive the payments in your currency, helping you keep track of your finances.
- Payoneer is a little ‘lenient’ with strict policies and regulations associated with PayPal.
- It supports over 150 currencies giving it a global outlook
- Payoneer fees are a flat $3 per transfer and free to receive.
- Lower transaction fees
- Depending on the country, the platform applies a 2% to 2.75% currency conversion charges
- A minimum of $50 is needed before you can withdraw the funds
3. Bank Wire Transfers
Ever since the internet took over the world, banks also made it easy to send and receive money without setting foot on the bank itself. There are online platforms (websites and apps) that one can use to send money electronically to others. This is a preferred option for most freelancers in the UAE who don’t like going through the lengthy processes of account verification found in other platforms.
- Fast and convenient
- Global service
- Many freelancers shy away from bank wire transfers due to their exorbitant prices
- Once a wire transfer has been made, it is not reversible
This is the same old traditional method used to send and receive money easily as a freelancer. The biggest advantage of using them is that you don’t have to pay for any deposit fees.
- It is a convenient payment method for all countries
- Once you send payment, the money is technically still in your account until the recipient presents the check to their bank. This gives you the time to stop the transaction if need be.
- You can postdate a check for future payments.
- They are inconvenient if you need money quickly as they take days to mature and process.
5. Accounting software
Tools such as Wave, Quickbooks, Due, etc., come in handy with their in-built payment options. One can easily create and send invoices and also receive money electronically from their clients. Payment processing is fast, the fees are generally low, and most of them can be integrated with popular money processing platforms.
- Simple, fast processes such as the creation of invoices
- Automation of tasks
- Integration with other systems such as banking
- You may need to purchase annual support and maintenance for your package.
Freelancers in Dubai get clients from all over the world. Even though you may use this post to pick out your most preferred payment method, it is paramount to have at least two of them to reduce payment issues when you land that awesome gig.