If you’re interested in the gig economy, how freelancers receive payments in Nigeria is already on your mind.

The reason you’re bothered is understandable. Any client will buck at the prospect of paying 7.9% in transaction fees for sending $200.

Simply put, transaction fees are a bummer!

What’s worse?

Third-party apps like Payoneer and PayPal don’t make it easier. Their high withdrawal fees, lengthy documentation, and murky account policies will drive you nuts.

Don’t believe me? Check out these complaints on Quora about Payoneer’s account closing rules. 

Complaints about Payoneer on Quora

So, what options do freelancers have to receive payments from clients? You have cryptocurrency, the digital currency you can’t hold but can spend without local or cross-border interference.

But before you switch to cryptocurrency, you must beef up your knowledge about cryptocurrency platforms. I’ll explain them in this piece. Walk with me. 

Freelancer payments: 3 factors to consider before choosing a crypto platform for remittance

Many differences exist between traditional banking and cryptocurrency, and we covered some of them here. As a freelancer in Nigeria, consider the tips below before choosing a platform for crypto payments. 

1. Access to multiple digital assets

Imagine a scenario where your client wants to pay you in a stablecoin like USDT, but your preferred crypto platform doesn’t support stablecoins. It means you’ll likely lose the client or the payment. That’s why you should thoroughly check the digital asset catalogue available for transactions before using a crypto company for international remittance.

Crane, for example, lets you receive money through popular virtual currencies, including Bitcoin (BTC), Ethereum (ETH), Tether (USDT), USD Coin (USDC), and Dogecoin (DOGE).

2. Security is key

Using a financial platform without adequate security is like leaving your house unlocked—it makes you vulnerable to thieves. The same applies to cryptocurrency platforms. While the blockchain uses advanced security systems (cryptography) for optimal protection, not every crypto platform is security conscious; therefore, theft and fraud are plausible with crypto-backed channels.  

Think of it like this: The Nigeria Inter-Bank Settlement System (NIBSS)—which facilitates inter-bank transactions in Nigeria—may have high security, but the banks you interact with may have lax security. Basic security measures you should look out for include: 

I. Payment Card Industry Data Security Standard (PCI DSS)

It protects card data. The standard is mandatory for any business (including crypto platforms) that collects, stores, and transmits card data. Ensure any crypto organisation or partners are PCI DSS compliant if they fall into the purview.

II. Multi-factor authentication (MFA)

It presents unauthorised access to accounts. Besides username and password, MFA requires another verification method such as biometrics (e.g., fingerprints), tokens, and one-time-passwords (OTPs) before granting access.

On Crane, for example, you can protect access to your account with fingerprints and OTPs, besides your password.  How effective is MFA for security? In 2019, Google discovered that adding a recovery phone number as MFA blocks up to 100% of automated bots, 99% of bulk phishing attacks, and 66% of targeted attacks. 

III. Know Your Customer (KYC) policies

The Central Bank of Nigeria (CBN) mandates financial operators in Nigeria to verify customers’ identities to prevent fraud. You should be wary if any potential financial organisation you want to do business with has poor KYC. 

3. Choose a platform that fits your needs 

No two crypto organisations are the same. Some of them help you buy and sell virtual currencies. Others, like Crane, help you receive money from anyone (including clients and business partners) as a freelancer. The crypto-powered organisation also lets you convert crypto to your local currency. 

Besides security, ensure any potential crypto platform you want to use for cross-border  payments provides the following benefits:  

• easy-to-use functionalities 
• defined pathway for converting crypto to local currencies
• swift processing time 

How freelancers receive payments in Nigeria using crypto

Crane is a crypto-powered financial organisation for receiving payments in local currencies. It works like this: your client pays in crypto and Crane lets you convert it to naira in minutes. Easy peasy.

Currently, you can receive payments in crypto through three ways on Crane:

I. Regular Crypto Deposit: It lets you receive crypto into your digital Crane wallet. This is your cup of tea if you understand the crypto market and want a digital wallet to receive and save your crypto earnings. Regular Crypto Deposit works like this: share wallet address with client > receive crypto payments in your Crane digital wallet > convert crypto to naira > send the naira to your local bank account.

II. Bank Direct: It’s the best option for crypto newbies. It allows you to receive crypto directly into your local bank account. It doesn’t require any manual crypto-to-naira conversion. It works like this: copy and share crypto wallet > receive payments in your local bank account. Click on the button below to learn how to use Bank Direct to collect payments from international clients.

III. Request Payroll: It’s an invoice and payment option in one. It lets you send invoices to your clients and business partners in one breath. Less paperwork, more efficiency.

Freelancer payments: 3 benefits of using Crane to receive payments from international clients

I. Transparent transaction fees: Our transaction fees are transparent and affordable. You’ll not be charged for inward payments. However, it costs 2% of the transaction fee to convert the crypto in your Crane wallet to naira.

II. Access to global clients: High processing fees, unending documentation, and complicated withdrawal rules are challenges restricting freelancers’ collaboration with international clients.

However, Crane’s blockchain-powered borderless system simplifies remittance, making it easy to receive payment from anywhere and anyone. The result? You’re likely to increase your income because you can offer your services to more clients globally. 

III. Swift payment collection: Using traditional banks to receive money is painfully slow. It takes at least three to five business days on average, which may take longer depending on the region you’re receiving money from. The opposite applies to Crane’s blockchain-reliant remittance system, where your payments will be settled within minutes. 

FAQs about how freelancers receive payments in Nigeria

1. How do freelancers in Nigeria get paid on Upwork? 

Upwork offers the following payment options for freelancers in Nigeria:

I. Direct to Local Bank: It’s for freelancers outside the US, including Nigeria. This method may take up to seven business days to withdraw money. Freelancers in Nigeria have a $3,000 limit.

It costs $0.99 (plus incoming fees at some banks) per direct withdrawal to your local bank. Watch the video below to learn how to link Upwork to your local bank in Nigeria. 

II. Wire Transfer: It’s for freelancers outside the US. Upwork charges $30 for each dollar wire transfer, although the rates may vary based on the foreign exchange markets and other bank charges. 

III. Third-party apps: Upwork lets freelancers in Nigeria use third-party apps like Payoneer to collect payments from clients. Transfers from Upwork to Payoneer take 48 hours or longer, depending on Payoneer’s recent policies. Besides, Upwork charges a “small per-transaction fee,” while Payoneer charges activation, monthly maintenance, transfer, and ATM usage fees. 

2. Can I use Upwork from Nigeria? 

Yes, freelancers in Nigeria can use Upwork to connect with clients and get paid.