Freelancers in Pakistan will now have access to Apple Pay and G-Pay. Will it matter? 

Lahore: Freelancers in Pakistan will now have the opportunity to receive international payments through Apple Pay and Google Pay. The major development in the tech field came after the financial technology startup Sadapay announced that its platform would be integrated with international payment platforms for business users. 

The move by Sadapay addresses a longstanding void faced in particular by Pakistani gig workers who work for foreign clients through platforms such as Fivver and Upwork. However, it should be noted that the introduction of Apple Pay and Google Pay through Sadapay is an initial first step and not an overall launch of the platforms in Pakistan. 

How it works 

Internationally, Apple Pay and G-Pay are mobile payment services introduced by Apple and Google that work on the respective operating systems of these phones. This means if you have an iPhone, a Mac, an Apple Watch, or any other Apple product you can use Apple Pay to make payments in person, in iOS apps, and on the web. Similarly, G-Pay caters to people with android devices. 

Now, both Apple Pay and G-Pay work with the ethos of digitising both cash and debit cards. These platforms can be used to make retail purchases as well as online payments in an easy and seamless way. In Pakistan, however, both of the platforms will only be enabled for online transactions through Sadapay. So what is the point? Well, this marks a major development for gig workers in the country. 

The freelancer equation 

The freelancing market in Pakistan is bigger than we realise. With low pays particularly in the software field, a number of young professionals have slowly drifted away from 9-5 jobs and have started working as self-employed individuals. Many of these professionals use platforms such as Upwork and Fivver and work for foreign clients. These clients find cheaper labour in markets like Pakistan and pay in foreign currency which is a win-win equation for both sides. 

Freelancers in Pakistan earned around $400 million in both 2021 and in 2022. This accounts for about 15% of Pakistan’s total $2.6 billion ICT (information-communication-technology) exports. An Oxford Internet Institute (OII) report ranks Pakistan 4th in the global digital gig marketplace, with about 8% of the total freelance work in 2017. Pakistan stands at 4th position due to a rising number of qualified graduates who are working by freelancing their expertise.

The biggest problem for these freelancers is the inability to receive payments. Pakistani banks make receiving foreign exchange payments a pain and the most available option of PayPal does not work in Pakistan. Apple Pay and G-Pay, however, are great alternatives with 500 million and 150 million global users respectively. This means that a lot of foreign employers are able to use these platforms to make payments. With Apple Pay being four times larger than PayPal, this means freelancers in Pakistan can potentially connect with 650 million clients worldwide.

For this purpose, Sadapay has set up Sadabiz. This is essentially Sadapay for businesses rather than for the everyday user. Through this platform freelancers can set up business accounts on Sadapay and enable themselves to receive payments through Apple Pay and G-Pay. Essentially, freelancers will be able to create a link requesting an Apple Pay payment and send it to their clients. The client can then simply click on the payment link, enter their information, and complete the transaction in a matter of seconds.

In the past year alone Apple Pay achieved a remarkable $6 trillion in payment volume, with a user base of 550 million, surpassing PayPal, which recorded $1.4 trillion in payments from 450 million users. Notably, PayPal saw an 8% decrease, whereas Apple Pay demonstrated an impressive 52% year-over-year growth. The potential for Apple Pay’s continued expansion is substantial, as there are roughly two billion iPhones globally equipped to utilise this service.

Considering the prolonged discussions about bringing PayPal to Pakistan without fruition, the integration of Apple Pay emerges as a significant development. It now enables freelancers to seamlessly accept payments from a vast clientele base, totalling 700 million people worldwide, through the connection to both Apple Pay and Google Pay.

Is Sadapay targeting the freelance market? 

This development is big for freelancers. It means that any foreign client with an iPhone anywhere in the world can easily and quickly pay freelancers in Pakistan, eliminating the need for clients to go through traditional payment platforms. This also seems to be a prudent business decision on the part of Sadapay, which is targeting a very lucrative niche market through this new option. 

The Sadapay Business accounts will also have a higher account limit than regular Sadapay accounts which have a monthly receivable cap of Rs 4 lakhs. The announcement was made by SadaPay’s Founder and CEO Brandon Timinsky last week during the SadaSummit held at COLABS Lahore. The event focused on the art of mastering freelance in Pakistan, a concept that has grown widely in the last few years. 

“By using SadaPay and bypassing traditional freelancing platforms, freelancers can save a significant amount of money on platform fees, which can often range from 10% to 30%,” said the Sadapay CEO.  

The move seems to be a dedicated effort towards promoting freelance culture in Pakistan with Sadapay wanting to become the payments solution for this growing customer base. That is perhaps why they have also launched SadaSchool, an online platform that offers a masterclass for freelancers to step up their portfolio with SadaSchool.

During the SadaSummit, SadaSchool CEO, Waqas Hassan talked about the vision behind this program and stated that it “envisions the establishment of a robust ecosystem tailored for freelancers within Pakistan”. Drawing inspiration from Singapore’s transformative shift to an entrepreneurial economy in 2011, SadaSchool is determined to foster a vibrant community of freelancers in the region. With the ever-increasing prevalence of remote work, the presentation underscored the pivotal role freelancers play in Pakistan’s economy, making their growth and support a priority.

Brandon talked about SadaSchool and stated that it will allow the user to take these Masterclasses on the free platform. On a Discord community it allows the user to go from a beginner to an expert as a freelancer from peer support and mentorship. Tasks are assigned and the user is able to upload the progress on Discord. With this, there is a resolute commitment to not just nurturing freelancers but also expanding the SadaSchool ecosystem into a comprehensive framework that significantly contributes to Pakistan’s economic growth.

What will the impact be? 

This is clearly good news for freelancers, and the initial response also indicates something similar. The question is, however, just how much of an impact will this have? For starters, most freelancers use platforms to find jobs. These are places such as fivver and Upwork. On these platforms, a person can link their bank account and the platform ensures that clients pay up in a timely manner.

The amount is deducted from the client in dollars and directly transferred into the bank accounts of the freelancers in rupees. The banks give them the money at the interbank exchange rate, something that can be particularly painful for the freelancers. The other problem is that when payments from foreign clients come in, the banks usually hold them for a few days after they are made. So if your client pays you on Monday, it is likely that your bank might process and release that payment to you by Wednesday or Thursday for example. In the few days in between, the bank sits on the foreign exchange and earns interest off it. The delay is in a way an additional transaction cost.

It will be imperative to the success of this product how quickly Sadapay can process these transactions and what rate they offer for foreign currency exchange. Currently a lot of the transactions take place through Payoneer on these freelancing platforms. There is also the added challenge that Apple Pay is used more by individuals rather than by businesses.