Best Online Payment Platforms for Freelancers

Freelancing isn’t a new concept by any stretch of the imagination, but there’s no doubt about the fact that it’s become more common in recent years.

Whether we chalk it up to developing technology or the sudden onset of Covid-19 and the shift to a “work-from-home” lifestyle, freelancing and contractor-style work is far more prevalent than ever before.

But, another thing that’s changed is that companies are hiring freelancers and contractors from all over the world. Nowadays, with the internet as far-reaching as it is, there’s nothing stopping professionals from working for companies all around the globe.

Sure, there are some obstacles that can make it a bit tricky, but generally speaking, those things haven’t stopped people from being incredibly successful working as international freelancers.

One of the main things people need to consider is how they’re going to be paid, and this is especially relevant for those working for companies and individuals in different countries. You’ll need to think of things like the legal issues and regulations surrounding paying international salaries, including tax considerations.

But, from a purely practical perspective, you need to figure out how you’re going to be paid.

Of course, there are plenty of ways in which you can make and receive payments internationally, but these days, the best, safest, most cost-effective and generally more efficient way to do this is by means of an online payment platform.

The good news is that as it stands, there are a variety of different payment platforms to choose from, from PayPal to Google Pay.

What Should You Consider When Choosing a Payment Platform?

• Currencies and Countries in Which It’s Available: Before you do anything, the first thing you need to check is which countries the platform is available in and works for, and the same goes for currencies. For many platforms, anyone can have an account and receive and send money through the account, but withdrawing the money into your bank account is dependent on where you’re based. So, make sure you check up on this.

• Fees and Charges: Different platforms will charge users varying fees. Some of these fees are on a transaction basis, others may be general account fees. However, it can get pricey if you don’t take these charges into account, so make sure you consider them and factor them into your consideration.

• Security Features: Security is always a priority when it comes to dealing with finances, and especially when you’re dealing with finances online. If you’re making or receiving payments via the internet, always ensure that you’ve done your research about the platform and know that it’s reputable and completely secure.

• User Experience: It’s always really important that the platform is user-friendly, especially since it’s got to do with your finances and it’s something you’re probably going to have to use fairly regularly. Have a good look at the site or app before you commit.

• Ease of Withdrawal: There’s nothing worse than having money in an online account or payment platform that you can’t withdraw and access properly. However, the withdrawal process is often complicated due to regulations and security. So, look into how easy or difficult it’ll be to withdraw your funds, but take it with a pinch of salt.

• Account Set Up: Setting up the basic account is normally fairly easy, so you shouldn’t have much of an issue with that. What can be difficult, however, is the second part of the account setup which is linking it to your local bank account so you can actually access and use your funds. Don’t skim over this bit – look into how it works and how easy or difficult it is where you live. For instance, in some countries, payment platforms only allow you to link your account to a specific bank in the country.

• Holding Periods: This isn’t always an issue, but some platforms have regulations regarding holding periods. That means that you are only able to leave your funds in the online account for a certain amount of time. If this is something you’re planning on doing – perhaps to play with exchange rates – then make sure you check up on how holding periods may apply to you.

No matter what you’re looking for, if you’re going to use an online payment platform – whether you’re a freelancer, a contractor or whatever else – you absolutely need to check up on all these things and more before you make a decision on the right platform for you.

Top Online Payment Platform Options

There are plenty of online payment platforms that you can choose from, all of which offer varying features.

Here are the top online payment platforms for freelancers and remote workers.

PayPal

PayPal, launched way back in 1998, is one of the most popular and arguably best payment platforms available. Operational in more than 200 different countries, it’s generally pretty easy to use.

There are different fee structures depending on where you’re based – the standard charge is 2.9% on transactions, but it can increase to about 4% if you’re making cross-border transactions.

The platform operates with email addresses as a foundation, and standard transactions take about 24 hours to go through, unless you opt to pay for an instant payment.

One of the biggest upsides of PayPal is that a lot of people use the platform, which makes it really handy in terms of making and receiving lots of payments.

Some of the downsides, however, are that PayPal is often considered a bit more expensive than alternatives, and the platform also has the ability to freeze your account for up to three weeks at a time based on their own imposed restrictions.

Wise

Wise also operates by means of email addresses, allowing people to send money to somebody by means of their email – the recipient just needs to have a Wise account (which is free).

On the platform, users can have accounts for different currencies. Payments are made into the account of the common currency, and from there, users can either withdraw funds directly into their local bank account, or they can first transfer it to their preferred currency and then withdraw the funds from there.

Wise offers the use of 40 different currencies, and the platform charges a fee that is a percentage of the amount you’re transferring. You’ll also be charged a small fee to withdraw from Wise into a local account, and for this reason, some people consider the platform a bit more expensive than some alternatives.

But, on the upside, transfers reflect pretty quickly – normally within a day (if not instantly) between Wise accounts and within about 24 hours if you’re withdrawing from Wise.

Payoneer

Payoneer has been around for a while, having been launched in 2005, and it can be used for both personal and business purposes.

The platform supports the use of five settlement currencies and a handful more of transaction currencies. It’s available in more than 190 countries, and accounts are free and involve low transaction fees and costs.

A cool feature of Payoneer is that users can make use of the platform to request payments from businesses or individuals, and you can also get Payoneer cards, both debit and credit. You’ll pay for the first card and additional cards after that are free.

Skrill

Skrill, formerly known as Moneybookers, charges users different fees and transaction costs based on where the transactions are taking place. There are also limits on transaction amounts, so keep in this in mind if you want to make and receive large payments.

Transactions can also take a while to go through – normally between two and five days – but the platform supports the use of 40 different currencies.

Google Pay

Available on both computers and smartphones, Google Pay is available in about 30 different countries around the world. All users need is to link either their cell phone or email to their account, and they’ll be able to make and receive payments.

The cool thing about Google Pay is that generally speaking, you won’t be charged for international payments and transactions.

But the best thing is that the platform can be used to make direct payments for other things – and far more businesses and other banks and payment platforms accept it than others. So you could potentially save money receiving international transfers for free and then not having to withdraw it into local accounts.

Google Pay can also be used via smartwatches to make direct payments, so it’s super handy in plenty of different contexts.

The Verdict on the Best Payment Platforms for Freelancers

It’s no secret that there are plenty of different payment platforms out there that can be used for both domestic and international transactions – far more than we’ve mentioned on our list.

But, while many of them are great for other purposes, their features just aren’t really tailored to the needs of a freelancer and their needs.

PayPal, Wise, Payoneer, Skrill and Google Pay are, in our opinion, some of the best options to consider if you want to receive payments for freelance work because their transaction times are fairly quick (within a week, tops), they’re not too pricey and they allow you to make transactions across a variety of currencies and different countries.