Nearly 1.57 billion people from the global workforce are freelancers. This number is probably one-fourth of the world’s population. So you can understand its popularity and growth in post-pandemic circumstances.
Getting paid as a freelancer was somehow challenging a few decades ago. The rise of Fintechs has completely shaped the global payments system. You can receive money from anywhere in a matter of seconds.
Facilitating ease of payments global business process and contributing towards steady growth. In this article, we will discuss 5 popular payment methods for freelancers to seamlessly accept international payments.
5 Best Payment Methods For Freelancers
Getting paid as a freelancer is much easier than before. The below payment methods give security, speed, and global access. Let’s explore them one by one.
1. PayPal
Due to its flexibility, features, and user-friendly interface, PayPal is one of the most popular payment methods for freelancers. It accepts a wide range of international currencies and allows you to convert to your local currencies.
The Key Features:
- It is widely accepted and used by most international businesses. As a result, you will find it a convenient choice for sending and receiving payments.
- It transacts in multiple currencies and easily converts the money sent/received into your preferred currency.
- The payment platform protects your buyer/seller information by offering extensive security layers.
Pros of PayPal:
- Effortless to use for beginners
- Flexibility and acceptance
- Quick processing
Cons of PayPal:
- Higher fees for cross-border transactions
- The exchange rates offered by PayPal are somehow lower than actual ones
2. Wire Transfers
This is a traditional method to receive freelance payments, where the funds are directly exchanged into banking accounts. No third-party involvement is necessary for completing such transfers.
It can be a safe way to transfer higher amounts of funds and has global acknowledgment for seamless transactions.
The Key Features:
- Robust multilayer security for safe payments
- It has global acceptability
Pros of Bank Wire Transfers:
- Best for large transactions
- Secure to send and receive money
Cons of Bank Wire Transfers:
- The fees are higher in this case when compared to the other freelance payment methods
- The transaction speed is relatively lower. Your transactions will take 5 to 7 days to process
3. Wise
Wise (previously TransferWise) was the pioneer of the peer-to-peer international payment model. It redefined the payments verse with minimal fees and transparent exchange rates. Moreover, it offered a low conversion rate to the users.
The Key Features:
- Global reach with acceptance of 40+ currencies and 70+ eligible countries
- Local virtual bank accounts for receiving payments
- Integration with accounting software like Xero
- Wise business debit card for global spending
Pros of Wise:
- Cost-effective payment method for freelance payments
- User-friendly platform with ease of access
- Competitive exchange rates
Cons of Wise:
- Slow payment processing as compared to other alternatives
- Limited access (Only available in 70 countries)
4. Payoneer
Payoneer is a convenient and flexible payment option for freelance payments. It offers a wide range of features and competitive fees. It is designed for freelancers and businesses that sell globally.
The Key Features:
- Available in almost 190 countries with 70 currencies
- Standard security measures to protect its users
- Multiple payment options like wire transfer, Payoneer card payments, and integration with freelance marketplaces
- Physical and virtual MasterCard options for international spending and withdrawals
- Can request a payment from it with billing details
Pros of Payoneer Payments:
- Freelancer-friendly payment solution
- Cost-effective and flexible option for global transactions
- Enhanced security and protection
Cons of Payoneer Payments :
- Not all the clients are familiar with it.
- Potential delays in payment transfers
- Less reliable customer support
5. Payment Service Providers
Square and Stripe are payment service providers that help freelancers complete their payments. These platforms give subscription billing solutions, global payments, and processing services. They are easier for e-commerce stores to receive payments.
Key Features:
- Integration with websites and mobile applications
- Global payments and transactions
- Can link up credit cards, digital wallets, and PSP
Pros of Payment Service Providers:
- Easy and convenient payment system
- Data protection and security
- Flexible integration with other options
Cons of Payment Service Providers
- Higher fees
- Frequent account suspension and holds
Frequently Asked Questions
Conclusion
The above-discussed payment methods are mostly used for receiving freelance payments. They offer security, integration, and speed to get paid. Each platform has its pros and cons so it is good to use multiple methods for convenience.
Before signing up you should read their terms, check fees, and availability. Get paid as a freelancer through these globally accepted payment providers.