Freelancers are scattered all over the world and with such an extensive network of professionals, it has become easier for employers to get access to people with the right credentials. With freelancing networks, access to the international community has now become easier. All you need is the right platform.
However, the issue of payment is still unsettled for some and employers are constantly looking for ways to pay their international freelancers. Our article is here to provide you with a guide on how you can pay international freelancers without going through the hassle of haggling about conversion rates.
How To Pay International Freelancers?
One major advantage of modern software solutions is the creation of multiple payment platforms and packages for doing proper invoicing. These solutions make it easier to access details you can use to pay freelancers. Here, we’ve compiled 4 ways to pay freelancers:
Online Exchange Platforms
An exchange is a platform for buying and selling different currencies. You can create a virtual bank account on an exchange and utilize the service to convert to different currencies. The exchange you are using depends on the location of the freelancer.
Currency exchange platforms are beneficial to both employers and freelancers because they ensure that they get the best rates when they have successfully exchanged to their own currency.
There are also exchanges for cryptocurrency. Some exchanges also partner with banks so that freelancers can take a code and identification to the bank and convert it to their preferred currency. There are other ways to pay freelancers, especially when you’re from a country that places restrictions on digital payments. You can use wire transfers via your banks to directly send them the currency notes so that they can either exchange them in their country’s black market, sell them to people looking for currency to travel, or simply collect their currency equivalent at the exchange point in the bank.
Wire transfers conventionally charge a predefined fee on every transaction, so you don’t have to bother about paying charges per amount which makes them better than banks that charge VAT on transfers.
Although cryptocurrency has recently hit a very bad downturn, it does not change the fact that stablecoins are one effective way to pay freelancers. You can convert from any currency to a stablecoin and then transfer that to freelancers via cryptocurrency trading and exchange platforms. This gives your employees a chance to invest their funds without paying exorbitant fees or requiring P2P platforms, or, the chance to simply convert to their currency and keep some money in the bank. Another way to pay with crypto is to use wallets. This is because apart from conventional exchanges, there are also hardware crypto wallets that are protected by encryption. You can use these to ensure that your employees are paid in full and that they don’t have any hacker issues. This option is however only viable if you don’t mind using a courier service to send and receive the hardware wallet.
Using the post office is something most people rarely do. However, they’re a great go-to for mailing checks to international employees. You can simply write the check, package it, place a stamp and mail it to their local post office. If you want to ensure they get it at the appropriate time, you can simply mail it a few days or a week earlier and you’ll be sure they get it in time. There are also ways you can mail cash via the post office although the system is outdated. A lot of post offices have an accounting system that allows you to save, send and receive money via postal services.
Having your freelancer create a domiciliary account for payment is one of the easiest ways to send them money. This is especially great when the domiciliary account is in your own currency. It makes it easier for them to exchange to their currency when they receive and for you to send without needing to visit an exchange.
It is always important as an employer to ensure that you get the best rates for exchanges and also use platforms that are friendly to your international freelance employees. If you’re not comfortable using exchanges or wiring money, you can always sign up on employment platforms and create contracts between you and your freelancer(s). This way, you can make sure that they get their money (with the fees and charges attached) and that they’re not ripped off by fake P2P salespeople.
The best solution to pay international freelancers depends on your preference and the comfort of the worker. Any of the options above work seamlessly.