4 Easy International-Friendly Payments Solutions
Expand your search for talent and services across the whole world with these four easy international-friendly payments solutions.
Published on October 10, 2022
Easy International-Friendly Payments SolutionsAs the world continues to work remotely, your business no longer has to operate locally. Now, you can expand your search for talent and services across the whole world! However, as you work with international employees, contractors, and vendors, successfully making international payments is critical to your operations. The good news is that there’s no shortage of options for sending and receiving international payments, but it can be confusing to figure out which ones are right for you.This rundown will cover four easy solutions for making international payments to foreign contractors and international vendors. Some international payment methods are more effective than others, depending on the specific use case. We’ll go over some of the most common ones, weigh the pros and cons, and offer targeted solutions that can help you simplify your international payments.
1. International wire transfersThe term “international payment” often brings to mind international wire transfers — the process of electronically sending cash from one country to another via bank. While secure and convenient for the recipient, international wire transfers via bank can be costly and inconvenient to the sender.Contact your bank to figure out how to initiate a wire transfer, whether in person, via phone, online, or through their mobile app. Provide your recipient’s bank account information so the bank knows where to send the funds. Your bank then sends your electronic funds transfer (EFT) via SWIFT either directly or indirectly — meaning that your money could pass through multiple banks before reaching the recipient.
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2. International money transfersYou can also send cash internationally via money transfer services like xe, Western Union, and Wise. Instead of going through the SWIFT network, these transfers go through the provider’s own communication system. Money transfer services offer faster transactions with lower fees and better exchange rates at the cost of convenience and security.Here’s how it works: You choose the amount to send in your currency, seeing how much your recipient will receive in their local currency. You then pay the service provider by domestic bank transfer, debit, or credit card. The provider then transfers that amount to their international partners, who deliver it to your recipient either via bank transfer or cash pickup.
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3. PayPalYou can also send payments internationally via PayPal, an online global payments processor. PayPal is favored by many international businesses for its ease of use and e-commerce integrations, but it comes with high fees and potential compliance issues.It’s quite easy to send money internationally with PayPal. You can transfer money between more than 200 countries with PayPal, as long as both parties have a PayPal account. If you’re sending money from your PayPal account directly to your recipient’s PayPal balance, the transfer is instantaneous. However, if sending via bank transfer, it can take a few days to deliver.
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4. Accounts payable and payroll platformsAn accounts payable platform for your vendors and a payroll platform for your contractors give you all the advantages of using the above methods — and then some. You gain visibility into the fees per transaction, helping manage costs. Meanwhile, you also ensure all your contractors and vendors are always paid on time in their local currency via automated international payments.Rho, a partner of Pilot, is a complete corporate finance platform that has everything business leaders need in a single view to run their finance operations and save time and money, including savings for US-based companies that conduct foreign transactions. The platform’s built-in AP function automates bill pay from creation to approvals and auto-syncs with your accounting software for faster reconciliation. Translation: You can upload, approve, code, and pay invoices all without leaving Rho.
The information contained in this site is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Pick the international payments method that makes the most sense for youWhile we recommend going with purpose-built international payment platforms, other options might fit your needs better. If your business is starting out with just a few contractors or accounts payable, paying through PayPal or one-off wire transfers can be great. As you scale and grow, though, consider automating your international payments with a global HR and payroll platform like Pilot and a complete corporate finance solution like Rho.
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