After last week’s email about banking in the Philippines, I got comments on social media about how others handle payments. The great thing about these comments is they came from guys who have been outsourcing for years, so they know what they’re talking about.

Reading these comments, I know some of you might feel overwhelmed by choice. Which system is best for paying your OFS?  PayPal, EasyPay, Wise, Remitly?

Short answer:  IT DOESN’T MATTER

You can pay them through whatever system works best for you. It won’t matter much to your OFS because their online banking and e-wallet apps (Gcash, PayMaya, and bank apps) will allow them to receive whatever payment system you use. For e-wallets that allow direct-to-bank transfers (such as Gusto, Remitly, and Wise), they can easily create a bank account online to receive the payment.

No need to overcomplicate things.

For those of you looking for a slightly more complicated answer.

For newly hired Filipino workers, use a payment system like EasyPay, Paypal, or Wise. As mentioned in my previous newsletter, Filipino workers have learned to avoid direct bank transfers because that’s how they’re usually scammed.

Also, EasyPay, Paypal, Wise, and Remitly can send money directly to Gcash. This makes it easier for your worker to get their money quickly.

Once trust is established for you and your OFS, you can pay them through whatever system works best for you.

Again, not that complicated.

I just want to clarify something about the previous email. Gusto is just another e-wallet system designed specifically as a payroll system. The only difference between Gusto and the other systems is that Gusto sends the money directly to their bank account.

Gusto also requires that you have a “domestic contractor” added to your Gusto payroll before you can add an international contractor. So to those just starting out and looking for an OFS for their first “employee,” that may not be an option for you.

John

PS. I mentioned Paypal here a few times because it’s easy. Especially if it’s your first time paying someone.
But it’s also crappy for them for receiving salary month after month. Paypal’s exchange rate is so much lower than EasyPay or Wise that the amount they receive is significantly different.