Payoneer Lands Overseas Paychecks In India’s Hands

The discussion of global business expansion these days usually circles around the rise of eCommerce and cross-border purchases. While companies extend a worldwide reach, consumers and businesses alike can now buy and sell without the restrictions of national borders.

But this global expansion has led to a less-discussed change in the way companies do business: overseas employment. While cross-border payments is a hotbed for innovation, businesses are also struggling with how to effectively, quickly and safely pay employees located outside the country.

Payment service provider Payoneer is tackling some of the challenges in this space for Indian employees working for European and U.S.-based corporations. According to the company’s announcement made Wednesday (June 3), Payoneer is expanding operations in India to offer a cheaper alternative to companies that want to pay India-based freelancers and online marketers.

There are several ways Indian employees can receive an overseas paycheck, the firm said, including real-time payments from various freelance marketplaces like Freelancer.com and PeoplePerHour. Or, Payoneer can facilitate the sending of invoices to U.S. or EU employers and reconciles payments via ACH or Euro transfers. When received by an employee, the funds are automatically placed into the appropriate account in Indian Rupee.

According to Payoneer, the funds can be transferred in as few as four hours.

According to Payoneer CEO Scott Galit, the new service overcomes several major hurdles for cross-border payments in India, especially fees. Payoneer can cut these fees, the company said, by up to 50 percent compared with rival PayPal.

“Previously, Indian freelancers, online marketers and other professionals faced high fees and slow transfer times, and our cross-border payments platform directly addresses these challenges,” he said.

As for why Payoneer chose India, the answer is simple: freelancers in the nation make far more than other professions in the nation, while India leads the world in Internet user additions on an annual basis. “The Indian market is producing more highly skilled professionals than ever before and this greater connectivity is changing lives and opportunities for businesses worldwide,” said India-based digital marketing agency Esmee Network founder Chitraparna Sinha. “Payoneer’s launch in India comes at the right time.”