Best Payment Methods & Platforms For Freelancers
🤔 Question: I switched from a full-time job to freelance because I wanted to control my time and money. I have just started my freelance design agency, and I am the first hire, LOL. I have done my paperwork and everything needed to make my agency legal in my country. Currently, I am looking for the best payment platform for my freelance agency. So many are in the market, and I am looking for the best fit.
This was a question I saw while scrolling on Quora a while ago, and It sent flashbacks to the time I began my freelance writing career.
I experienced this problem for a while, but it got better when I learned about Cryptocurrencies, and I have never looked back since then.
However, this wasn’t the same story for my colleagues who became freelancers afterward and had the same problem.
I suggested they be paid in Crypto, but not all their clients wanted this. It brought some skepticism, and my friends had to reject some jobs because of the bugging question, “How would they be paid?”
Before you start screaming, “use PayPal!” You should know that PayPal does not work in every country. In fact, in my country, Nigeria, it is pretty hard to get a PayPal account as a freelancer because of some unfavorable laws in my country.
This has caused many freelancers, like myself, to look for alternate means to get paid by foreign clients.
If you are just like me or my friends and want to know the best payment methods and platforms available for freelancers, this article is just for you. I will show the best payment platform globally before streamlining it to Africa.
Best payment methods for freelancers?
As a freelancer, knowing the best payment method to receive money from your clients is crucial.
There are very few methods to receive money as a freelancer, and they are:
Through Local or International Bank Transfers
As a freelancer, a direct bank transfer is a straightforward method to receive money from your clients. Many freelancers use this payment method, especially if their clients are within their country.
However, different banks have different processing times, which can cause delays in payment if the bank is slow.
For some banks, it takes 1–5 working days before you can receive your money. This mostly happens if it’s an interbank transfer.
Also, you should know that you will be charged a transfer fee when your money is sent to your account.
If you want to opt for bank transfer as a payment method for your international clients, you can make use of:
- SWIFT transfers(this is used globally).
Through Digital wallets
This works like bank transfers, only that you are required to have a digital wallet app.
Some Digital wallets like Google Pay, PayPal, Payoneer, Apple Pay, and Skrill allow you to open a digital wallet with ease.
(I have dedicated the next section of this article to explain all you need to know about these wallets.)
With digital wallets, you can receive payments and make transfers from anywhere.
One benefit of having a digital wallet is that it can manage multiple currencies and offer fast transactions. This is a massive benefit if you have international clients.
Best Payment Platforms For Freelancers Globally
Cryptocurrency
This is currently my best way to receive payment as a freelancer, and it is arguably the best way for freelancers worldwide to get paid because of how fast and always available this is.
According to Chainalysis, African Countries like Nigeria, South Africa, Kenya, and Tanzania had the highest cryptocurrency adoption rates worldwide, ranking in the top 20 of the global adoption index.
This is because of the many freelancers and crypto traders living in these countries.
Currently, there are over 20,000 cryptocurrencies, including the popular Bitcoin and Ethereum. However, you should know that crypto is highly volatile, which means that the price of Crypto keeps fluctuating; this is why some people shy away from it.
Nevertheless, if you want to receive payment in Crypto, you should use stablecoins like USDT, USDC, DAI, etc.
Being paid in crypto makes it easy to monitor your funds, get paid instantly without delays, avoid unnecessary bank charges, and easily transact globally.
Features
- Decentralization
- Speed and security
- Ownership and total control of funds
- Transparency
Pros
- Meager transaction fees.
- It is very universal and can be used by anyone at any time.
- It is transparent as transactions are being recorded on a public blockchain.
- Get paid instantly from anywhere in the world.
- No third party restricting how much should be in your wallet.
Cons
- Accessing your wallet can be difficult if you forget your private keys or password.
- Most clients might not accept this payment option.
- If you don’t take security measures to protect your Crypto, you can get scammed easily.
How long does it take to process payment?
One huge advantage Crypto has over the other payment platforms is that it is instant, especially if you use Blockchains like Ethereum or Tron to receive payments.
The only commercial blockchain right now that takes the longest time of 10 minutes to process payment is Bitcoin. This is because it makes use of the Proof of Work consensus mechanism.
Fees
The Gas fees charged when making a transaction on the blockchain largely depend on the blockchain you are making use of.
Various blockchain networks, like Tron, Litecoin, etc., offer very low gas fees. You can do your research before selecting one to make use of, including the best crypto exchange to use.
Paypal
This is the most known and used freelancer payment platform, accepted by various clients, especially internationally.
One exciting reason I might try out this platform again is that PayPal just launched its stablecoin, PYUSD, on the Ethereum blockchain. Now, freelancers can get paid and transfer money on PayPal through its Stablecoin.
The US dollar deposits and short-term U.S. treasuries back the PYUSD. PayPal is gradually releasing the stablecoin option on its platform first to its US clients before releasing it globally.
However, if you don’t want to use the PYUSD, PayPal is an excellent platform that supports over 25 currencies globally, including USD and Euros.
It is available in over 200 countries, but it is essential to check if PayPal is available in your country before adopting it as a platform to get paid through.
Features
- Flexible payment methods.
- Very user-friendly mobile app.
- Available in many countries and supports multiple languages.
- Accepts over 25 currencies.
- Effective customer support.
Pros
- It is easy to set up and use.
- You can get paid in any global currency of your choice.
- Not complicated to use.
Cons
- The transfer fee is very high.
- No excellent customer service if you don’t have the premium plan.
- For its free plan, you have limited withdrawal options.
How long does it take to process payment?
To receive international transfers from your client to your PayPal wallet happens instantly.
However, withdrawal from your PayPal wallet to another bank account, like your local bank account, takes 3–5 business days.
Fees
This depends on the location, but for International transactions, PayPal has a fixed fee of 4.4%+.
For US transactions, the fee offered for PayPal Payment Pro is 2.9% + country fee ($0.30 is the transaction fee for the US).
Stripe
Stripe is another incredible online payment platform for freelancers.
I love this platform because it can be used globally, including in African countries like Nigeria, Ghana, and Kenya.
This payment platform is available in over 20 countries and has over 135 currencies. Stripe allows business owners and freelancers to accept payment through web hosts, email, or mobile applications.
Features
- Amicable user interface.
- Access to Financial reports.
- Easy to use.
- Excellent customer service.
Pros
- It offers excellent customer service.
- You can customize your checkout flow.
- It supports a wide range of payment methods.
Cons
- Stripe integration requires expertise
- Its processing fee is quite pricey
How Long Does it Take to Process Payment?
This payment platform takes a couple of days to process payment.
Fees
For per-card payment transactions, fees are 2.9% + $0.30, and for stripe transactions, fees are 2.7% + $0.05.
Wise
Wise is a payment platform that was formerly known as Transferwise. This platform allows you to send money to over 80 countries and accepts over 40 currencies.
One big plus with this platform is that you can receive payment in foreign currency and easily convert it to your local currency. This is excellent for freelancers who want to spend their money in their local currency.
Features
- You can have a multi-currency account.
- Wise wallet cards are available.
- It has an option for businesses.
Pros
- It doesn’t have any hidden cost
- Wise is easy to set up
- Easy-to-use mobile app
Cons
- Your payments can be delayed.
- Transfer rates are pretty high
How Long Does it Take to Process Payment?
Wise can take a few seconds to 5 working days to process payments depending on the payment method, the amount you will be receiving, and the country you are in.
Fees
This also depends on the amount received; the currency sent, and the country you are in. You can calculate your fees here.
Skrill
Skrill is a digital wallet that is not only excellent for freelancers but also an excellent platform for saving money.
This universal payment platform accepts up to 40 currencies and is available in 200 countries, including Nigeria.
Features
- Accepts Multiple currencies.
- Virtual wallet.
- Excellent loyalty program.
- PoS transactions are available.
- Link to your local bank account.
- Accept cryptocurrency payments.
Pros
- Meager transaction fees.
- An excellent global payment platform.
- Excellent for small businesses.
- Users are offered an improved conversion rate.
Cons
- Payment processing time is not instant.
How Long Does it Take to Process Payment?
Skrill takes up to 3 days to approve transfers, depending on factors like the country you are receiving payment from and the amount.
To transfer from Skrill into your bank account, the processing time takes two working days, and it also depends on factors like the receiver’s country, the sender’s country, and available payment methods in the receiver’s country.
Fees
If you want to use Skrill to convert your money to your local currency, you will be charged 3.99% of your money.
However, when receiving payment, it doesn’t have a minimal fee attached.
Payoneer
This payment platform is also popular among freelancers because of its fast payment process.
Payoneer makes it easy for anyone to receive and send money online.
This platform is available in over 200 countries and supports over 150 currencies worldwide.
Features
- Available in 200 countries
- It can integrate easily into various platforms for businesses.
Pros
- Transfers between Payoneer accounts are free.
- Excellent customer support.
- Low fees when paid in currencies like USD, EUR, JPY, and GBP.
- No delays in payment.
Cons
- To use the MasterCard, an annual fee is required.
- To change money to your local currency can be pricey.
- Transferring money to your local bank can take days.
- You may be charged other fees like landing fees and intermediary fees, depending on your country.
How long does it take to process payment?
Payoneer takes 2–5 business days to process payment.
Fees
Payoneer charges 2% to transfer a foreign currency and $1.50 if you want to transfer funds to your local bank.
For card payments, it charges 3% and 1% of the amount you receive for EUR and USD transfers.
Google Pay
Google Pay is a free online payment platform that Google owns.
Google Pay allows users to send and receive money by linking their local bank account information directly to the website.
This platform is currently on Android and iOS devices. Although this payment platform is banned in Russia, it is being used by over 100 million people globally and is available in about 40 countries.
Features
- Lock your device from anywhere.
- Contactless payments.
- High security.
Pros
- It is easy to use
- GPay is integrated with Google services.
Cons
- It takes more than a week to process the payment
- Banks do not widely support it.
- You can only be paid in the currency attached to your local bank account.
- Does not accept exchange.
How long does it take to process payment?
It takes 3–5 working days to process payment.
Fees
For credit cards, GPay charges 2.9% — no charges for transfers and debit cards.
Best Payment Platforms For Freelancers In Africa
For freelancers in Africa with minimal options, here are three excellent payment platforms you can use to receive payment globally.
Grey Finance
This is one of the best payment platforms for African freelancers to receive payments from their clients without any restrictions.
It accepts over 20 international currencies and is available in over 80 countries.
For users who want access to a foreign virtual card, Grey also offers a virtual card to its users to shop and pay for products and services online with ease.
Features
- Two-factor authentication
- Referral bonus
- Fraud protection
Pros
- It offers free USD, GBP, and EUR accounts to users
- Reliable customer service
- User-friendly mobile app
- Virtual cards can be used anywhere.
Cons
- The platform has service downtime in unexpected moments.
- Payment processing can take much time.
How long does it take to process payment?
Grey takes 3–5 business days for USD payments if the sender uses ACH transfers.
For other payments, the processing time is 1–2 business days.
Fees
Grey offers free withdrawals and conversions, but to receive payments, it charges 1%.
GeegPay
GeegPay is a payment platform that is used mainly by Nigerians to receive payments from international clients and also to make online payments.
This platform allows users to receive payments to their account within three days through wire transfer.
It’s a platform I will highly recommend because of how easy it is to use.
Features
- Multiple withdrawal channels
- Multiple currency payment
Pros
- Users can exchange currencies for free
- It offers free direct bank transfers
- Good customer support
Cons
- Receiving transfers is not instant.
- It takes weeks to verify an account.
How long does it take to process payment?
It takes 1–2 business days to process payment, but for USD payments, it takes 3–5 business days if the sender makes it.
Fees
Withdrawals and conversions are free, but to receive funds, you’ll be charged 0.9% with a minimum of 1%.
Payday
This new payment platform allows African users, especially in Nigeria, to send and receive funds to/from anywhere worldwide.
Payday gives users control over their transactions and allows users to create virtual cards that can be used for limitless online payment.
Features
- Payday virtual card
- Foreign bank account
- Global MasterCard
Pros
- You can own multiple international accounts
- Payday offers a virtual card to its users
Cons
- It provides a slow processing time
- Customer service is unresponsive sometimes
How long does it take to process payment?
It takes 1–2 business days to process payment, but for USD payments on Payday.
Fees
There are no charges for receiving money into your foreign account, but you’ll be charged a minimum fee of $5 to send out USD.
For transactions to a Nigerian account, you’ll be charged 35 Naira per transaction.
Wrapping Up!
These payment platforms are excellent for any freelancer looking to get paid by international clients.
You should know that there are so many payment platforms out there. Still, it’s advisable to research cost, processing time, and availability in your country before selecting which payment platform or method is best for you.
