For freelancers, the primary objective is to receive funds on time, and in a convenient manner. Bitcoin seems to address a lot of concerns in this regard, as it is a global payment option. But in India, there is still competition from PayPal, as they launched a new P2P service recently. Competition is good, as it will benefit the consumer in the end. Moreover, this goes to show the importance of peer-to-peer payments.
Working as a freelancer opens up a lot of exciting opportunities. One can work for anyone else in the world, as long as they offer a convenient payment method. International wire transfers are becoming a thing of the past quickly. Freelancers and enterprises are using newer forms of money transfer, including Bitcoin and PayPal.
Freelancers Are Better off With Bitcoin
Speaking of the latter company, they recently launched a new peer-to-peer payment initiative. PayPal.me, as this service is called, seems to be gaining traction in India as of late. Instead of remembering complicated payee details, employers can make a payment through a convenient web URL. On paper, it makes a lot of sense for freelancers to use this payment option as well.
One thing the PayPal.me service does not address are the higher transaction fees. Bitcoin remains a lot cheaper in this regard, and will continue to do so for quite some time. At the same time, PayPal is a more widely-recognized brand compared to cryptocurrency. This creates an interesting scenario for freelancers who want to get the most bang for their buck.
Another issue to take into account are the currency exchange fees. Services such as PayPal will charge a slight premium for exchanging currencies. This leaves the recipient with less money in their pocket unless the employer pays the fees. In most cases, the premium fee ranges between 2% and 4% for Indian freelancers.
More importantly, PayPal payments can be frozen and reversed at any given time. Financial uncertainty is the last thing freelancers want to worry about these days. With PayPal.me, money is never guaranteed to be yours, regardless of where it comes from. Bitcoin transactions, on the other hand, cannot be reversed. Keeping in mind how cryptocurrency is gaining popularity in India, PayPal has to deal with a major competitor in the freelance world.