How to receive payment from international clients as a freelance marketer in Nigeria
Imagine spending sleepless nights doing a client's work and then struggling to get paid because your financial apps can’t receive payment from your international client.
This was me in early January this year.
If you’re currently in this situation I can imagine you’re reading all the articles you can find and getting frustrated.
Not to worry, I've done all the reading and research for the past few months and have documented all you need to know about safely and successfully receiving international payments from your foreign clients.
No longer will you receive the email saying “We are having problems sending payment to you via this account,” like I did in January. No longer will Nigeria be the weapon fashioned against you.
Everything I’ll cover:
How you can receive international payments to your Nigerian Account
You can do this by using a payment provider that the sender can operate with from their country and a payment provider you can receive within Nigeria.
Many financial institutions claim to offer international payments, but not all work for Nigerians.
I spoke to a couple of freelancers in Nigeria, and coupled with my personal experience, here are payment platforms that actually work for Nigerians today.
1. Domiciliary bank account
This is a foreign currency-denominated bank account. It allows anyone living in Nigeria, whether as an individual or a business, to hold and transact in foreign currencies such as US Dollars, Euros, or Pounds Sterling.
Pros of using a domiciliary account
It’s widely accepted by international clients.
It offers you a high level of stability and security.
It allows debit card access to funds and online international payments.
Cons of using a domiciliary account
There are high maintenance fees associated with opening and maintaining the account.
You may experience delays and high processing fees for international transfers.
They have limited online banking features compared to Fintech apps.
Three reliable domiciliary accounts used by freelancers in Nigeria
They’re known for their global network strength. The freelancers I spoke with ranked this bank number one, especially in light of the recent CBN ban on dollar transactions in Nigeria. They do have a few drawbacks like few physical bank branches and slow customer support response time.
2. Zenith Bank
They offer competitive exchange rates. You can choose between an account with limited cash withdrawal options (Ordinary) or a more flexible option with cash withdrawal capabilities (Cash Domiciliary).
They offer one of the most convenient online banking features. GTB has lower minimum opening balance requirements compared to Zenith Bank. (This can be subject to change, so confirm with each bank for the latest information) The bank also has a wider branch network across Nigeria, potentially offering greater accessibility for your in-person banking needs.
2. Fintech apps
These offer features like quick and secure cross-border money transfers, currency exchange, and real-time transaction tracking.
Pros of using a fintech app
They have faster and more convenient sign-ups and transactions compared to traditional banks.
They have lower fees and competitive exchange rates.
They offer a mobile-first experience with user-friendly interfaces.
Cons of using a fintech app
They may not be as widely accepted for international payments as dom accounts.
Limited customer service options compared to traditional banks.
Potential restrictions on transaction amounts or withdrawal methods.
Three reliable fintech apps used by freelancers in Nigeria
1. Cleva
Cleva facilitates international transactions and offers virtual dollar cards. Their platform only has a provision for a dollar account.
How to use Cleva: Register and get a dollar account. Send the dollar account to your client, get paid then withdraw directly to any of your Nigerian bank accounts you have connected on the app.
2. Geegpay
Geegpay provides multi-currency wallets and seamless international transfers. GBP, Euro, USD.
How to use Geegpay: Register and get a foreign account. Send the foreign account to your client, get paid then withdraw directly to your Nigerian bank account on the app.
3. Grey Finance
Grey offers virtual international bank accounts and debit cards. From the experience of most freelancers I spoke with, this was the most unreliable because of consistent downtime and the fact that they are not widely accepted to the other two GBP, Euro, and USD.
How to use Grey Finance: Register and get a foreign account. Send the foreign account to your client, get paid, and then withdraw directly to your Nigerian bank account on the app.
3. Cryptocurrency
Cryptocurrency is a digital or virtual currency that uses cryptography for security. It operates on decentralized networks based on blockchain technology. These currencies can offer faster and potentially more cost-effective cross-border transactions.
Pros of using cryptocurrency
It is fast with low-cost international transfers.
It is decentralized and potentially more secure than traditional banking.
It has had a growing acceptance by international businesses.
Cons of using cryptocurrency
It has a highly volatile market, with consistent value fluctuations.
It requires an understanding of cryptocurrency wallets and security measures.
It is not yet widely accepted as a mainstream payment method.
Some additional drawbacks of using crypto in Nigeria, as at the time of writing this article, include:
Regulatory uncertainty: The ongoing dispute between platforms like Binance and the Nigerian government creates uncertainty around cryptocurrency regulations in Nigeria. This can make it risky for both businesses and individuals.
Limited banking support: Some Nigerian banks have restricted transactions involving cryptocurrency exchanges, making it difficult to convert crypto to Naira.
Potential for scams: Periods of heightened uncertainty can attract scammers targeting those interested in cryptocurrency.
While cryptocurrency offers potential benefits, it's crucial to weigh the risks involved, especially given the current climate in Nigeria. It may be safer to steer off cryptocurrency for now if you’re not already in it.
An example of a reliable Cryptocurrency exchange freelancers in Nigeria have used is Binance.
Binance is arguably the largest and most popular cryptocurrency exchange in Nigeria and globally. However, there are some recent disputes with the Nigerian government and Binance and therefore you should be cautious about taking this option.
How to use Binance: The way it works is that you share your Binance address, then the client sends the crypto equivalent and you receive it in your Binance wallet. To get the cash, you’ll need to swap it for Naira directly on the Binance app.
Factors to consider before choosing a payment provider
The best payment provider for you depends on your individual/business needs and preferences. Before choosing an option, consider the following factors:
Frequency of international payments: If you expect regular payments, a Fintech app might be more convenient.
Transaction amounts: Larger transactions might benefit from a domiciliary account with lower transfer fees.
Your comfort level with technology: If you're new to cryptocurrency, a domiciliary bank account might be a safer option. If you’re going for a fintech app, choose one with a user-friendly interface and clear instructions for receiving payments.
Credibility and track record: Go for established institutions with a proven track record and positive online reviews, and check that they have relevant certifications and licenses. Beware of those with a history of security breaches and subpar customer service support.
Currencies & exchange rates: Always check to know what currencies they offer and make sure to compare the provider's supported bank with your client's preferred payment provision. You’ll want to look out for those offering competitive exchange rates with minimal hidden fees.
Payment times: Beware of the processing time for international transfers. Compare the average wait time between when your client sends the payment and when it reaches your account. Prioritize financial providers with fast and efficient processing, especially if you rely on timely payments for your livelihood.
Common challenges with receiving international payments
1. Unfavorable exchange rates
Fluctuating currency values: International currencies like USD or EUR can fluctuate significantly against the Nigerian Naira (NGN).
Hidden fees and markups: Some providers might charge additional fees on top of the quoted exchange rate, reducing your final received amount.
Limited access to wholesale rates: Traditional banks may not offer the most competitive exchange rates, leading to higher conversion costs.
The implication: You might receive less than expected due to fluctuating rates and hidden fees, impacting your overall earnings.
2. Payment delays
Slow processing times: Traditional banks and some Fintech apps can take several days to process international transfers, impacting your access to funds.
Intermediary bank fees: Funds might have to pass through multiple banks, resulting in additional processing time and potential delays.
Bureaucratic hurdles: Complex regulatory procedures in certain countries can cause unexpected delays in receiving payments.
The implication: Delays in receiving payments can disrupt your cash flow and create financial difficulties, especially if you rely on timely payments for your livelihood.
3. Missing or unreceived payments
Human error: Typos in bank details or technical glitches can lead to incorrect routing of funds, making them difficult to recover.
Fraudulent activities: Scammers may exploit vulnerabilities in payment systems, leading to stolen or lost funds.
Chargebacks or disputes: Clients might initiate chargebacks for various reasons, resulting in reversed payments and potential account restrictions.
The implication: Missing or lost funds can have severe financial consequences, impacting your business and livelihood.
How to solve these challenges
Choose reliable and reputable providers: Prioritize established companies with secure payment gateways and clear terms and conditions.
Double-check bank details: Ensure accurate and complete information is provided when receiving payments.
Diversify your payment methods: Consider using a combination of traditional and Fintech options to minimize reliance on a single system.
Stay informed: Keep updated on regulatory changes and potential risks associated with international payments.
International payment providers that don’t work for Nigerians in 2024
From personal experience, research, and discussion with other freelancers, these are the payment providers that have been problematic so far in 2024.
1. PayPal
Why Paypal doesn’t work well for Nigerians:
Limited functionality: Currently, Nigerians can only use PayPal for sending payments, not receiving them.
Restrictions on business accounts: Even for sending payments, Nigerians face challenges in verifying business accounts, limiting their usefulness for freelancers.
2. Wise (formerly TransferWise)
Why Wise doesn’t work well for Nigerians:
Limited account options: Wise does not offer standard business accounts for Nigerians, hindering functionalities necessary for receiving payments.
Potential verification challenges: Nigerians might encounter difficulties verifying their identity and residence for creating accounts.
Suspended payment management: Recently Wise has disabled payment management in Nigeria, so whether you want to use a business or personal account you can’t receive money directly on the platform.
3. Payoneer
Why Payoneer doesn’t work well for Nigerians:
Limited receiving options: While Nigerians can receive payments through Payoneer, they are not able to withdraw funds directly to their local bank accounts just as easily.
Potential account limitations: Payoneer accounts for Nigerians have limitations on transaction amounts or withdrawal methods. Even with the option of linking your Payoneer account with a withdrawal outlet like your Geepay, some freelancers have faced issues with this.
Account creation restrictions: Recently Nigerians have found it difficult to open an account with Payoneer. The ease of use of the platform is also poor alongside a poor customer support system for Nigerians.
Experiences from freelance marketers on receiving international payments
As a freelance content marketer, I personally used Cleva Bank to receive my payment from an international client and it was the most seamless process ever. I got my money in 2 days and was able to send it to my WEMA bank (I had already added this account to my Cleva account). I’m sticking beside Cleva until further notice.
But I also asked seven freelance marketers in Nigeria to share their experience with receiving international payments from clients (USD, GBP, Euro), including the best and worst payment platforms they’ve used. Here’s what they had to say.
Oyinkansola Ogunyinka Edem (freelance content writer and fictional author)
“Payoneer has been great. Payday was a disaster. Deel and Wingspan were also amazing but the company I worked for handled those. And recently, I sent money through Grey but I haven’t tried receiving with it.”
Oyinda Depo Oyedokun (freelance creative, content, ghostwriter)
“I used Payooner in 2022- the rates were low (not black market) and slightly higher than bank rates and the money was entering directly in Naira. I’ve also used WorldRemit to access the domiciliary account as dollars and I transfer to a dollar exchange guy for Naira.
I’ve also used my sister's PayPal account and she then transferred the naira equivalent to me. As of March 4th when my employer tried to send me my pay, the WorldRemit transfer could only come through in Naira.”
Faruq Animasahun (SEO and content marketer)
“I used Geegpay to receive payment last year from the US. Geegpay can offer you a Wells Fargo bank account and your clients can do ACH or wire transfers from any Fintech.
The company I work at does wire transfers and the fastest I got was about 15 hours (even though Geegpay said it typically takes 1-2 days). I've used the same bank account to receive payment from Upwork too. Upwork sent the funds via ACH. I got it in 2 days (excluding weekends).
Geegpay has great rates and I never had issues whatsoever. I still use it to receive payment and that's the only way I can receive payment at the moment. You could open an account if you have either an international passport, NIN, or voter’s card.
AI and automation growth marketer, Greatdorlin Wisdom, also uses Geegpay, stating that “Geegpay works out well.” So does Ibukun Esan, a content marketing manager and freelance content writer, who notes that “I use Geegpay. They create a virtual dollar account for you so you can send your account details to the client”
Mae Josemaria Oparaocha (content marketer and strategist)
“I use Wise and I use Paypal. I barely use PayPal because of the boundary in Nigeria. Paypal isn't opened in my name, it's opened in my friend's name but with my email address. I get the notification and he receives the money. This way, I can track when the money comes in. So because of the VPN regulation, I don't open the app or account. He does everything.
It's also the same way I used Wise (formerly Transferwise) before I activated my account. I used his name but with my email address. Now that I've verified the account, I have it on my phone and use it in my name. I can’t withdraw directly so I send it to his foreign account, and then he uses LEMFI or Flutterwave’s Send to transfer to me. It seems like a long process but it works for me. I don’t use Geegpay or Grey because the transfer cost is high for me.”
Stella Inabo (content writer and strategist)
“My horror story is losing over $1,000 to Grey when the whole Silicon Valley Bank thing happened. I sent money from my Wise to Grey and the next day SVB collapsed. I kept following up about my money with both banks and they kept turning me around. I’m yet to recover it till today.”
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