Years ago, e-wallets were frequently one of few payouts methods offered to recipients. Even today, some senders are still working under the misconception that e-wallets are the ONLY payouts option that recipients wanted or needed.
Nothing could be further from the truth.
The truth, many recipients prefer other methods of being paid. For example, out of the 886 female freelancers we surveyed in 2018 in the U.S. and India, half of the Indian respondents and 40 percent of American respondents said they preferred the Local Bank Transfer method. And that makes sense when you put yourself in your recipient’s shoes and ask, how would you prefer to be paid? Most people would prefer money to be deposited directly into a bank account and your recipients are no exception.
With the rise of Local Bank Transfers, e-wallets have become only one of a range of payout solutions available today. Other options, including international bank wires, prepaid cards, money transfer services and checks all have their pros and cons – some options with more “cons” than others.
The benefit that many cite regarding e-wallets is that they enable secure payments transfers without exchanging information that is private. They also can be a convenient way for businesses to deliver instant funds to recipients.
E-wallets are an indirect method to send global payouts. They can have very high fees including account maintenance, withdrawal and other fees in order to access these funds. This can add up fast when sending a significant amount of payouts a year, especially if your business is a large marketplace like eBay, Zazzle or Airbnb. The transfer speeds can also vary tremendously when sending multiple payments to your clients. Every second and every penny count, right?
This is where Local Bank Transfers excel. Local Bank Transfers are a payments structure that provides a more direct route from your business’ bank account to your recipient’s bank account. Local Bank Transfers travel by way of a network built not by the global banking system, but by a payments provider. This makes the payment more direct because middlemen are eliminated.
It's 2019 and e-wallets are no longer the only player in the game. Know your options!