Remote work has opened doors to global talent like never before. You might find the perfect designer in Colombia, a skilled virtual assistant in the Philippines, or a talented developer in Nigeria. But once the work is complete, many business owners hit a roadblock: how do you actually pay them without getting hit with expensive fees?
Traditional bank wires are still an option, but they’re often slow and costly. The good news is that modern payment platforms have made international freelancer payments much more manageable. With the right approach, you can send payments across borders quickly, securely, and affordably.
Whether you’re running a small business or managing a side hustle, understanding your options for international payments will save you time, money, and stress. Here’s everything you need to know about paying freelancers abroad without breaking the bank.
Why Traditional Payment Methods Fall Short
Bank wires were once the standard for international payments, but they come with significant drawbacks for small businesses paying freelancers:
- High fees and hidden costs: Traditional banks often charge hefty transfer fees plus poor exchange rates that eat into your budget.
- Slow processing times: Bank transfers can take 3-5 business days or longer, which isn’t ideal when you need to pay freelancers promptly.
- Lack of transparency: It’s often unclear exactly when your payment will arrive or what fees you’ll actually pay until after the transaction is complete.
- Limited accessibility: Your freelancer needs a traditional bank account, which isn’t always available or practical in all regions.
These limitations have pushed many businesses to seek better alternatives for international payments.
Modern Payment Solutions for International Freelancers
Several digital platforms now specialize in cross-border business payments, each with different strengths:
Popular Payment Platforms
Remitly Business has expanded beyond personal transfers to support business payments. The platform offers multiple delivery options including bank deposit, mobile wallet, cash pickup, and even home delivery in some locations.
Wise offers competitive exchange rates and transparent fees. It’s particularly strong for bank-to-bank transfers and supports many currencies worldwide.
Payoneer provides freelancer-focused features like mass payouts and multiple withdrawal options. Many freelancers already have Payoneer accounts.
PayPal remains widely recognized and accepted, though fees can be higher for international transfers.
Key Features to Consider
When choosing a payment platform, consider these important factors:
- Delivery options: Can your freelancer receive money through their preferred method?
- Geographic coverage: Does the platform serve your freelancer’s location?
- Fee structure: Are fees transparent and reasonable for your transfer amounts?
- Exchange rates: How competitive are the currency conversion rates?
- Transfer speed: How quickly will your freelancer receive the payment?
- Customer support: Is help available if something goes wrong?
Setting Up Successful International Payments
The platform you choose is only part of the equation. How you set up the actual payment process matters just as much.
Agree on Payment Terms Upfront
Before starting any project, establish clear payment expectations:
- When payment is due (before work begins, after completion, or at specific milestones)
- Which payment method you’ll use
- Who covers any transfer fees
- What currency the payment will be in
Having these details agreed upon prevents confusion and builds trust with your freelancer.
Verify Recipient Details Carefully
Small errors in payment details can cause major delays. Double-check these details with your freelancer:
- Full legal name (exactly as it appears on their bank account or ID)
- Complete bank account information or wallet details
- Correct country and regional information
- Preferred delivery method
Even minor spelling mistakes can result in failed transfers or lengthy delays.
Choose the Right Delivery Method
Different freelancers prefer different ways to receive money:
Bank deposits work well for freelancers with traditional banking access and offer security and documentation.
Mobile wallets are popular in many countries and provide instant access to funds.
Cash pickup serves freelancers in areas with limited banking infrastructure.
Home delivery offers convenience in supported locations.
Ask your freelancer which method they prefer and use most often. This ensures they can access their payment quickly and easily.
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Security and Compliance Considerations
When paying international freelancers, security should be a top priority. Look for payment platforms that offer:
Regulatory compliance: Choose services that follow international financial regulations and anti-money laundering requirements.
Encryption and security: Ensure the platform uses strong security measures to protect your financial information.
Transaction tracking: Select services that provide clear tracking and confirmation of payment delivery.
Customer support: Pick platforms with responsive support teams that can help resolve issues quickly.
Managing Costs Effectively
International payment fees can add up quickly if you’re not careful. Here are strategies to minimize costs:
Compare Total Costs
Don’t just look at transfer fees. Consider:
- Exchange rate margins
- Recipient fees (if any)
- Processing fees
- Hidden charges
Calculate the total cost of your transfer to make accurate comparisons between platforms.
Time Your Transfers Strategically
Exchange rates fluctuate daily. For larger payments, monitor rates and transfer when they’re favorable. Some platforms offer rate alerts to help you time transfers better.
Bundle Payments When Possible
If you work with the same freelancer regularly, consider consolidating multiple small payments into fewer larger transfers to reduce per-transaction costs.
Why Remitly Business Makes Sense for Freelancer Payments
Remitly Business addresses many common pain points in international freelancer payments. The platform offers transparent pricing with no hidden fees, so you know exactly what you’ll pay upfront.
Multiple delivery options mean your freelancer can receive money through their preferred method, whether that’s a bank deposit, mobile wallet, or cash pickup. This flexibility is particularly valuable when working with freelancers in regions where traditional banking isn’t easily accessible.
The platform also provides cost summaries and estimated delivery times before you confirm transfers, eliminating surprises. Strong security protections help ensure every transfer reaches its destination safely.
For businesses that need to pay freelancers regularly, Remitly Business streamlines the process without the complexity of traditional banking or the high fees of other services.
Best Practices for Ongoing Freelancer Relationships
Once you’ve established a payment method that works, maintain consistency:
Stick to your agreed schedule: Pay freelancers on time, every time, to build trust and maintain good working relationships.
Communicate clearly: Let freelancers know when you’ve sent payment and provide any tracking information available.
Keep records: Document all international payments for tax and accounting purposes.
Stay flexible: Be open to adjusting your payment method if your freelancer’s needs or circumstances change.
Plan ahead: Don’t wait until the last minute to send payments, especially around holidays or weekends when processing may be delayed.
Start Making Smarter International Payments
Paying international freelancers doesn’t have to be complicated or expensive. With the right platform and a few smart practices, sending payments across borders can be as smooth as paying someone locally.
The key is choosing a service that offers transparency, competitive rates, and the delivery options your freelancers prefer. Take time to compare your options, verify recipient details carefully, and establish clear payment processes with your freelance team.
Ready to simplify your international freelancer payments? Create your free Remitly Business account and experience the difference that transparent pricing and flexible delivery options can make for your business.
FAQ
What currencies does Remitly Business support for freelancer payments?
Remitly Business supports a wide range of currencies for international payments. Check the platform for the full list of supported currencies to ensure you can pay freelancers in their preferred currency.
Are there hidden fees when using Remitly Business?
No, Remitly Business is committed to transparency. You will see a detailed breakdown of fees and exchange rates before completing a transaction, so you always know what you are paying.
How long does it take for payments to reach freelancers?
Delivery times depend on the payment method and destination. However, in many cases, funds are delivered within minutes to the recipient’s account.
Can I track my payments to freelancers?
Yes, Remitly Business provides tools to track your transactions in real-time, giving you and your freelancers peace of mind.
Is Remitly Business secure?
Absolutely. Remitly Business employs robust security measures, including encryption, to ensure your transactions and personal data are safe at all times.