Global payment platforms for contractors: How they work, pros and cons

Disclaimer: This is informational content, not legal or financial advice. Fees, availability, and features vary by country and account type. Always verify current options and requirements for your specific jurisdictions.

When paying independent contractors (not employees), you don't need an EOR to move money. You can pay directly via global payment platforms—then maintain complete documentation in your own records with proofs, approvals, and confirmations for audits.

Overview of major payment platforms

Here's a quick look at the main platforms used for contractor payments:

Wise specializes in bank-to-bank transfers with competitive foreign exchange rates. Strong coverage globally, transparent fees, and batch payout options. Good for cost-efficient cross-border payments.

Payoneer offers multi-currency receiving accounts and mass payout tools. Popular with freelancers and contractors globally, especially in Latin America and Asia.

Airwallex provides business accounts with multi-currency wallets, batch controls, and strong API support. Good for finance teams needing approval workflows and programmatic controls.

PayPal is ubiquitous and fast for recipients with PayPal accounts. Higher fees than some alternatives, but familiar to most contractors.

Revolut Business offers multi-currency accounts and business cards with decent global coverage. Availability varies by region.

Bank wires (SWIFT, SEPA, ACH) are universal and auditable but slower and more expensive for cross-border payments.

How global payment platforms work

The basic workflow is the same across platforms:

You maintain the account. You open an account with Wise, Payoneer, Airwallex, PayPal, Revolut, or your bank. You fund it from your business bank account.

You initiate payouts. You send money to contractors—either individually or in batch. You specify the amount, currency, recipient account, and reference information.

The platform processes the transfer. The platform handles foreign exchange if needed, deducts fees, and delivers funds to the contractor's account or wallet. Speed varies: 1-3 business days for most transfers, instant for wallet deposits.

You keep complete records. You save the transaction ID, receipt, and any reference information. You attach proof to the milestone or invoice in your records. You request contractor confirmation that they received the payment.

Result: Complete audit trail showing every payment, approval, and confirmation.

Platform comparison: choosing the right one

For cost-efficient cross-border payouts: Wise is the default choice. Transparent fees, strong foreign exchange rates, local transfer options, and batch payout support. Typical speed: 1-2 business days, often same-day on local rails.

For mass payouts to many contractors: Payoneer or Airwallex. Both support batch files and mass payout workflows. Payoneer is popular with large freelancer bases. Airwallex offers more control options.

For lowest total cost on your main payment corridors: Compare all-in cost (fees + FX spreads) across Wise and Airwallex for your top payment routes. Hidden FX spreads can exceed visible fees.

For fast, ad-hoc amounts: PayPal is ubiquitous and instant to contractor wallets. Cons: higher fees and FX spreads. Watch for wallet withdrawal limitations.

For teams needing approval workflows and controls: Airwallex or Wise with API integration. Both support role-based approvals, batch processing, and programmatic reconciliation.

For enterprise compliance and auditability: Bank wires. Universal, compliant, auditable. Trade-offs: slower (1-5 business days), higher fees, manual process.

Pros and cons by situation

Paying many contractors monthly: Use Wise, Payoneer, or Airwallex for batch payouts. Set up monthly payment runs to reduce per-payout costs. Batch large transfers rather than small frequent ones.

Prioritizing lowest cost: Wise or Airwallex, depending on your payment corridors. Calculate total cost (visible fees + FX spreads) for your top 10 payment routes. One platform isn't cheapest for all corridors.

Small, ad-hoc amounts: PayPal or Payoneer. Speed matters more than optimizing cost. Con: contractors may face withdrawal fees or delays converting wallets to bank accounts.

Enterprise controls and reporting: Airwallex with API, Wise with API for automation, or bank treasury partners. Why: approval workflows, role-based access, programmatic reconciliation, strong audit trails.

International team with regional hubs: Revolut Business for EU/UK heavy teams plus local rails. Wise for global coverage. Combine platforms by region if needed.

What to include in your contractor payment terms

Your contract or statement of work should specify:

Payment model: Milestone-based, retainers, or net terms (e.g., "Net 7 after approval").

Payout provider options: Which platforms you support. Example: "Payment via Wise, Payoneer, PayPal, or bank transfer at company discretion."

Currency and foreign exchange: The invoice currency and who bears FX or transfer fees. Example: "Invoice in EUR. Company covers all transfer fees. FX at Wise mid-market rate."

Delivery and acceptance timeline: What "approved" means, how many revision rounds are included, and when the payout is triggered. Example: "Milestone approved within 2 business days. Payment sent within 5 business days of approval."

Proof and confirmation. You'll attach proof (transaction ID, receipt) to your records. Contractor confirms receipt. Example: "Company provides transaction ID and proof. Contractor confirms receipt within 24 hours."

Dispute resolution: How to escalate if a payment doesn't arrive. Example: "If funds not received within [timeframe], notify company within 48 hours with screenshot of expected arrival time."

Document these once in your standard contract. Reference them at the milestone level when paying.

Step-by-step workflow for clean contractor payments

Step 1: Define milestones. Title, due date, currency, amount, and acceptance criteria.

Step 2: Approve the deliverable. Review the contractor's work against acceptance criteria. Approve or request revisions. Document approval in your records.

Step 3: Initiate payment. Log into your payment platform. Initiate transfer to the contractor's account. Include project/milestone reference in the payment note.

Step 4: Attach proof. Save the transaction ID, receipt, or screenshot. Attach it to the milestone record with the contractor's name, amount, date, and reference.

Step 5: Request confirmation. Send a message: "Payment sent for [Milestone]. Transaction ID: [ID]. Please confirm receipt." Record the contractor's confirmation.

Step 6: Reconcile monthly. Compare your payment platform statements to your internal records. Verify all payments match, fees are as expected, confirmations are complete.

Result: Finance has evidence for every dollar paid. Operations sees progress. Contractors get paid on time. Audit trail is complete.

Common payment pitfalls and how to avoid them

Hidden foreign exchange costs. Small FX spreads add up over time. Compare total cost (visible fees + FX spread) across platforms for your main payment corridors. Don't just look at advertised fees.

Per-payout fees add up. Processing weekly payments costs 4x more than monthly. Batch payouts monthly or bi-monthly where reasonable. One large transfer is cheaper than four small ones.

Unclear payment references. Always include a project, milestone, or invoice reference in the payment note. This makes reconciliation and contractor confirmation easier.

Wallet lock-in. If contractors can't easily withdraw from their receiving wallet to a bank account, you haven't actually paid them. Confirm local withdrawal options and timing before committing to a platform.

No audit trail. Email threads and payment screenshots scattered across email aren't proof. Keep approvals, proof of payment, and confirmations linked together in your records.

Contractor disputes. "I never received payment" is costly to resolve without documentation. Keep complete records: approval, transaction ID, receipt, delivery time, and confirmation.

Quick decision guide

International payments with cost focus? → Wise (default) or Airwallex (more control).

Marketplace-style mass payouts? → Payoneer (mass tools) or Airwallex (batch controls).

Small ad-hoc amounts, speed matters? → PayPal (instant to wallets).

EU/UK heavy with team coordination needs? → Revolut Business plus local rails.

Large or regulated deals requiring full auditability? → Bank wires with strong documentation.

The bottom line

Global payment platforms let you pay contractors directly without an EOR. Choose based on your payment corridors, volume, and control needs. Key is maintaining complete records: approvals, proofs of payment, and contractor confirmations.

Set clear payment terms in your contract. Document every payment with transaction ID and proof. Request contractor confirmation. Reconcile monthly to catch issues early.

The platform is just the tool. The documentation is what protects you in audits and disputes.