– A New Way of Paying Outsourced Employees


Probably the most popular way of playing outsourced employees today is Paypal, which is a service I’ve been using for years now. I’m quite happy with it, as I’m sure a lot of other employers are. However, there’s a new mode of payment that’s been making noise in the virtual world, which is was ceated by John Jonas. John is an entrepreneur who also created and  Quick plug here:  I signed up to John’s ReplaceMyself service several years ago to learn how to hire people in the Philippines to work in my business.  It was absolutely money well spent.

I have to say that I haven’t tried using this service yet, but it sounds pretty good.  I’m not ready to make the switch yet for a few minor reasons, but if you HAVE tried it out, please mention it in the comments below.  I’d love to know what you think.

How does it work?

It’s actually quite simple. First, you (the employer) has to set up an account for free at and link it with your existing bank account.

The next step is to issue a payments card to your employee. The ATM card will be delivered to your employee within 72 hours by LBC (LBC is one of the most trusted courier in the Philippines, much like FedEx or UPS). There is a one-time set up fee of $3.88 for the ATM card, delivery is free.

When you need to send a payment to your employee, all you have to do is authorize a payment through and the amount will be automatically deducted from your bank account and then loaded into the ATM card.

Your employee can then withdraw the money from any of the more than 8,000 Megalink ATMs in the country.

The Perks

What’s so great about using

For your employee, it’s great because they can just withdraw the money through the ATM. No need to transfer it through Paypal or wait in line (if you’re using Xoom).

As an employer, claims they’re cheaper than other commonly used options. Some transfer agents take a percentage out of the money you send (or charge you upon sending it). With, you will only be charged a flat service fee no matter the amount you send.

It’s hard for me to offer a totally honest comparison of the fees because it all comes down to the exchange rates used by, PayPal, and my bank.  Since I live in Canada I use PayPal to send money to my employee in the Philippines right now.  If I send 16,000 pesos, it costs me a fee of 80 pesos ($2 and change).  She gets that exact amount of pesos with no conversion for her to do.  I absorb the currency fluctuation risk on my end.

With it looks like  you send US dollars, which is then converted to pesos on the employee’s end.  That’s great if your employee wants to be paid in US dollars, but I prefer paying in pesos so my employees know exactly how much money they are getting come pay day.

Still, the $4.99 flat fee is very affordable, and I think John Jonas has done a great job in setting up a reliable service.  To be clear about things, he hasn’t done everything from scratch.  He’s private labeling another existing solution in the Philippines and making it easy for online entrepreneurs to use it.  Kudos to him.

For the complete fee table for, you can go here.

Conclusion seems to be attractive, especially for people who have multiple employees in the Philippines. While you can send money from ANYWHERE in the world, only people from Philippines can receive it which is a disadvantage for people who employs workers from different countries such as India.

I think it’s a good option though.  I’ve heard about PayPal giving some people a hard time about using the service for paying salaries.  So if the PayPal option was to disappear for any reason I’d jump on this in a heartbeat.  And if my employees preferred being paid in US dollars, I’d use this option.

Again, I haven’t used this service yet but I think it has an extremely high potential. If you have used, we’d appreciate it if you can leave a comment and let us know what you think.

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