Payoneer fee increase for Pakistan is making headlines among freelancers—and for good reason. Starting in 2025, Payoneer will apply a flat 3% withdrawal fee on all transactions in USD, EUR, and GBP for Pakistani users. As one of the most relied-upon platforms for international payments in the country, this update has caused concern across the freelance community.
For many, this Payoneer fee increase in Pakistan is more than a minor policy update—it directly impacts how freelancers manage their income, set rates, and choose financial tools. In this post, we’ll break down what’s changing, why it matters, and what steps you can take to reduce the impact.
What Changed?
Until recently, Payoneer’s withdrawal charges for Pakistani users were:
- 2% fee on foreign currency withdrawals to local bank accounts
- Additional hidden margins on currency conversion
Now, the new structure includes:
✔ 3% flat withdrawal fee for USD, EUR, and GBP
✔ Transfers under $100: $1 receiving fee
✔ Transfers above $100: 1% receiving fee
✔ Currency conversion margin: Still applied, meaning an extra cost baked into exchange rates
This change represents a 50% increase in withdrawal fees—from 2% to 3%. For example:
- On a $1,000 withdrawal:
- Old fee: $20
- New fee: $30
That’s $10 more on every $1,000 you withdraw, and it adds up over time.
Why It Matters for Freelancers
Freelancers in Pakistan already operate in a tight margin environment. A sudden increase in fees directly affects:
- Net income: Lower take-home earnings for the same amount of work
- Competitiveness: Higher costs make pricing strategy harder
- Cash flow: Delays or smaller withdrawals can impact budgeting
When combined with Payoneer’s exchange rate margin, this increase can reduce overall payouts significantly.
Strategies to Reduce Impact
1. Withdraw Less Frequently in Larger Amounts
Each withdrawal incurs the 3% fee. Instead of multiple small withdrawals, consolidate your funds and transfer larger amounts less often to reduce overall charges.
2. Explore Alternatives Like Elevate Pay
Elevate Pay is emerging as a promising alternative for Pakistani freelancers, offering virtual USD accounts and competitive rates. Compare before you stick to Payoneer.
3. Use Linked Accounts Like JazzCash
Payoneer recently integrated with JazzCash, allowing easier access to your funds without relying solely on traditional banks. For smaller amounts, this could be convenient.
4. Consider Local Marketplaces
If your work allows, explore platforms offering local payout solutions with lower fees.
What About Wise or PayPal?
Unfortunately, Wise remains unavailable in Pakistan, and PayPal has yet to make an entry despite years of anticipation. In the meantime, freelancers should explore platforms that are actively supporting users in Pakistan—like Payoneer and Elevate Pay, an alternative to Payoneer.
Bottom Line
The new 3% Payoneer withdrawal fee is a wake-up call for freelancers in Pakistan to diversify payment methods and plan withdrawals strategically. Relying on a single provider is no longer practical—especially when new players like Elevate Pay are entering the scene.
Freelancing in Pakistan is booming, with IT exports and gig economy contributions growing every year. To stay profitable, freelancers must adapt quickly, manage costs wisely, and leverage every alternative available.
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