A guide to Upwork payment methods for freelancers in India

The world is your oyster—a phrase that couldn't be truer for freelance professionals in India. Far from the 9-to-5 routine, a freelancer's world belongs to a more flexible set-up, including the freedom to work from anywhere and with customers worldwide.

However, the benefits of freedom and flexibility to work with businesses worldwide come with unique challenges, particularly in receiving international payments in India. 

Marketplaces like Upwork have been actively supporting freelancers in finding the right connections globally. In this article, we will explore what Upwork is and how to get paid easily and on time.

Upwork supports freelancers in service and creative fields, such as writing, graphic design, web development, marketing, and more.

Building an ecosystem of freelancers, marketplaces like Upwork are improving the process of helping companies and freelancers connect—ensuring a seamless flow of work between companies and the right talent pool.

"Payments are the most complex part of freelancing," says Suresh Rao, a Bangalore-based designer. "If I'm not paid on time, then I have to spend my time chasing payments, which eventually keeps me away from doing the creative work that I enjoy and also holds me back from connecting with new clients."

Addressing the concern, Upwork doesn't just offer freelancers a way to find global projects, it also helps them collect payments in India.

If you are an Indian freelancer working with international clients through Upwork, you can receive USD payments through your exclusive Upwork account. This Upwork account is your reserve account. In technical terms, a reserve account is nothing but an escrow account. An escrow account offers a financial arrangement in which a third party holds and regulates the payment of the funds required to ensure a seamless transition between two parties. Imagine this: When your client deposits your payment in an escrow account, Upwork ensures that the funds are available for withdrawal once you have completed the project.

To explain further, how do freelancers get paid via Upwork? After a freelancer submits their project and the client approves the work, Upwork releases the amount from the escrow or reserve account and credits it to the freelancer’s INR account.

You can collect payments for Upwork assignments in multiple ways:

• Bank transfer: Upwork transfers funds from one bank account to another. For Indian freelancers like you, under the bank transfer method, Upwork converts the funds to Indian Rupees (INR) and deposits them directly into your local bank account, typically within 1 to 2 business days. For this service, Upwork charges 99 cents for releasing the funds and approximately 2.4% on FX conversions.

• SWIFT transfer: The money is transferred via the traditional wire service called SWIFT, which stands for Society for Worldwide Interbank Financial Telecommunications. In the case of Upwork, as a freelancer, you are charged up to USD 30 to send the USD payment to your bank account. In this mode, the bank where you hold an INR account will initiate the foreign currency conversion–which could add additional costs.

• Digital wallets: A few players offer the ease of receiving payments via a click-and-pay option, but these services come at a cost! Some players may charge a fee of 6% to 9% for receiving payments in India.

• A US bank account: As a freelancer, you can also receive money in your US bank account. However, this is a complex process, where you must set up an entity in the US to open a bank account.

• Virtual Bank Account Number (VBAN): A VBAN lets you collect USD payments without opening a bank account in the US or any other foreign country—a much simpler option. With Xflow, you can set up the VBAN quickly and receive funds in your VBAN in 1 business day. You will receive this payment in INR at a nominal fee.

Xflow's Receiving Account is free to create and works seamlessly on Upwork. To get started, follow these steps:

1. Keep your Xflow Receiving Account details ready —check 'Bank transfer details' on your Xflow Dashboard and look for 'ACH banking details'
2. In your Upwork profile, navigate to your Settings > Get Paid > Add a Method
3. Click on 'Direct to US Bank' and click on 'Set Up'
4. Fill in all the required information and click 'Add bank account.'
5. Upwork will activate withdrawals to your new account within 1 to 3 working days
6. After activation, you can withdraw funds from your Xflow account

• Cost savings: With an Xflow Receiving Account, you can minimize forex costs and save more than 50% on receiving payments in India. Xflow works with banking partners to offer FX rates at par with larger businesses, even for freelancers and gives you complete transparency on pricing.

• Traceability: You will get email notifications once you receive your Upwork payment in your Xflow Receiving Account. All payments are directly deposited into your account, and there is no back-forth to get the funds.

• Faster payments: With an Xflow Receiving Account, you can be assured that you’ll receive your payments from Upwork in your Xflow Receiving Account in one business day.

• Compliant and secure payments: Xflow provides an e-FIRA (Foreign Inward Remittance Advice) issued by an RBI-authorized bank for every withdrawal. It’s a testimonial to all international transfers that they are transferred to the right account, assuring compliance with national and international regulations. What's more? With Xflow, you can get your e-FIRA for free.

• Flexible withdrawals: Once the payment hits your Xflow Receiving Account, you can withdraw the amount as required–fully or partially. You’ll receive funds in your bank account within one business day.

• No limitations: That's a good feeling, isn’t it? With Xflow, it is a reality. The transaction value is unlimited. That’s right—there is no cap on transaction size or monthly limits.

Freelancing can be empowering, and it's equally rewarding if the payments are received on time and at an affordable cost. To learn more about Xflow for freelancers, check this page.