Let’s take Upwork earnings as a case study. We are going to compare almost every available Payment Method options in Upwork. There are 4 options available for all so far. Upwork recommends Direct to Local Bank (NPR) for Nepali freelancers only. They charge a little amount of $0.99 for each withdrawal. But unfortunately, their exchange rate is HORRIBLE. They give a very low rate which is 3-4 rupees less than the daily Foreign Exchange Rate in Nepal. Let’s do simple math transferring $1000 with the exchange rate of 20/12/2019 ( NPR 1 = USD 113.89) to determine which method is the best.
Direct to Local Bank (BDT)
Let’s assume that the bank’s rate is NPR 2 less than the forex rate.
$0.99 per withdrawal to Nepal.
$1000 – $0.99 = $999.01 X 111.89 = NPR 111,779.23
Normally it takes one or two days to arrive at your bank account.
So the ultimate rate for $1 is NPR 111.78
$2 USD per withdrawal from Upwork.
$1000 – $2 = $998 X 113.89 = NPR 113,662.22
Normally it takes three to four days to arrive at your bank account.
$1000 – $2 = $998 – $2.5 (Payoneer Quick Load Fee) = $995.5 X 113.89 = NPR 113,377.50
Normally it takes two to three days to arrive at your bank account.
So the ultimate rate for $1 is NPR 113.66 with normal delivery and NPR 113.38 with faster delivery.
Wire Transfer (USD)
It is not suitable for Nepal. It charges $30 for each transaction and takes a long time with various difficulties.
Direct to U.S Bank (USD)
Free payments to U.S Bank account in USD.
It is also not suitable for Nepal. Most of the Nepali freelancers don’t have U.S Bank account.
By Direct to Local Bank (BDT): $1 = NPR 111.78
Via Payoneer: $1 = NPR 113.66
Finally, we can take a fair decision to determine that Payoneer is the best way to send freelancing income to Nepal. And hopefully, we will find the same results in other marketplaces too.