Remote work is no longer an exception but the norm. If you just started hiring freelancers for your business, you may be wondering how to pay them. We made a list to make the selection more straightforward for you. Here is a list of how to pay a freelancer in ten different ways.
1. Payoneer
If you have between five and 200 freelancers working for you, Payoneer is an excellent option. This platform allows you to pay them all at once, anywhere in the world. This is one of many freelancers' favorite payment methods, as they can receive their money in as little as two hours.
Payoneer is recognized in more than 200 countries and over 150 currencies. A 2% standard fee is for all fund transfers done through the platform. If you choose to use your credit card, you may incur a charge of up to 3%.
2. Wise
Formerly known as TransferWise, Wise is a popular payment method for freelancers. It's because it has the cheapest fees and the quickest payouts. Transaction fees are around 0.45%, and the fixed fee is between $6 and $12, depending on the currency you're using. Also, it can take up to an hour for your freelancer to get their money.
One advantage of Wise is that you pay in your currency, and the freelancer will receive the funds in their currency. One drawback is that it isn't as widely accepted in some countries, limiting its convenience in certain circumstances.
3. Gusto
A robust payroll software, Gusto has various tools, including automation, to send payments to your freelancers. Its features help you manage employee benefits while calculating and filing your payroll taxes. It can also take care of crucial HR tasks, track the time of remote and hourly employees, and help with hiring and onboarding. Gusto typically processes payments to freelancers within 1-2 business days.
Gusto offers transparent pricing with its three flexible plans starting at $40 per month. It also charges $6 monthly per person, which can be costly for businesses on a budget.
4. Escrow
If you're looking to hold funds until the freelancer gets the work done, Escrow is the payment method for you. Your freelancer will receive the funds once you are satisfied with the work or when the deal is completed. The processing time usually takes ten business days.
Escrow is available in more than 200 countries and territories. It has low, transparent fees, which depend on the type of transaction. It has a fee calculator that lets you know how much you need to pay.
5. Skrill
Previously known as Moneybookers, Skrill is an online payment system that lets you send fund transfers to more than 120 countries. It delivers bank transfers instantly or within a 24 to 72-hour process. It boasts of a global transaction security, anti-fraud team, and other security measures to provide a safe transaction for you and your freelancer.
Money transfers with Skrill are free if sent within the same country. If you are sending money in a different currency, there is a currency exchange fee of up to 4.99%.
6. Revolut
A digital banking app, Revolut allows you to pay your freelancers and remote workers anywhere in the world. It offers a wide array of features and tools that can help you with budgeting, ATM withdrawals abroad, and business analytics. It also has investment features that allow you to trade cryptocurrencies, stocks, ETFs, and commodities.
Revolut charges competitive fees for international fund transfers. It depends on the currency you're sending and receiving. Typically, they are around 0.2% to 0.5% of the transfer amount. Different factors affect the time your payment gets to a freelancer. It usually takes 1 to 3 business days to arrive.
7. Deel
A global payroll platform, Deel lets you efficiently pay your freelancers anywhere in the world. It helps you handle payroll compliance and tax aspects, leaving you more time to focus on business. It supports payment to people in over 20 currencies, while freelancers can withdraw their funds in over 180 currencies.
Deel lets you send payments using a variety of methods, including bank transfers, debit, and credit cards. Its Instant Card Transfer charges a 2.5% fee for immediate payments to freelancers.
8. Remitly
A global payment software, Remitly lets businesses from 21 countries send money to freelancers in over 160 countries. You can transfer money to more than 3,000 banks and over 350,000 pick-up locations worldwide. You can send payment using your debit and credit cards or your bank accounts.
Remitly's transaction fees vary depending on the recipient's country. It charges a 3% fee for some transfers by credit card from the US.
9. Veem
A digital payment processor, Veem lets you quickly and efficiently send payments to your freelancers, whether domestic or international. It uses multi-rail technology that makes transactions safe and secure. It integrates with Xero, QuickBooks, NetSuite, and other apps.
Transactions with Veem are primarily free. You only have to pay a 2.9% fee for credit card payments, a 1% fee for instant deposits, and a $29 fee for international payments in USD (waived if both parties use Veem Wallet).
10. PayPal
A widely accepted payment method for businesses that hire freelancers and remote workers, PayPal is one of the most popular options. Its user-friendly interface, quick and secure payment process, and global reach make it a favorite among many companies. Payments are generally quick, your freelancers will get their money within minutes.
PayPal fees depend on the transaction, the country, and the amount of money being sent. Generally, sending money to family and friends in the same country is free. However, sending funds to international businesses is subject to a fee.
Conclusion
For businesses wanting to know how to pay a freelancer, these methods are sure to facilitate quick and easy transactions. You need to experiment and explore more to find which one will suit your specific needs and budget. Overall, this list will help you narrow your options and make selection easier.
