8 Ways to Pay International Contractors

Paige Smith | Published Feb 9, 2026 | 13 Min

Key takeaways

  • There are many different payment methods to compensate foreign contractors, and each one has its own pros and cons.
  • Banks and money transfer apps charge you per transaction, as do recruiting sites, where you can also pay contractors.
  • Payroll platforms usually charge a monthly per-contractor fee (sometimes in addition to transaction fees), but provide help with onboarding and compliance.
  • Gusto’s built-in global contractor payment solution lets you pay contractors without a per-contractor fee, and also helps with onboarding and compliance.

The rise of remote work has made it easier than ever to expand your talent search across country lines—but paying international contractors requires a different approach than paying your full-time U.S. employees.

In this guide, we’re sharing eight payment methods you can use to compensate your international contractors, and breaking down the pros and cons of each.

8 ways to pay your international contractors

Not all contractor payment methods are created equal. The route you choose depends on your business’s resources and payroll process, as well as your contractor’s needs and preferences.

Most commonly, it’s a choice from one of these four categories: banks, money transfer apps or digital wallets, payroll platforms, and recruiting platforms.

Payment Methods
Banks Money transfer apps Payroll platforms Freelancer recruiting platforms
Examples Wells Fargo, Chase, Bank of America PayPal
Wise
Payoneer
Revolut		 Gusto
Deel		 Upwork
Fiverr
Freelancer
Pros Convenient to use the bank you already do business with, and there’s no monthly per-contractor fee. No per-contractor fee, and some apps cheaper than banks. Pay all your US employees and global contractors from one platform; automate recurring payments and get tax compliance help. Recruit, hire, collaborate with, and pay your contractor in the same place.
Cons Fees and exchange rates can be high. Fees can add up; no HR or compliance support. Some platforms charge an extra per contractor fee (but Gusto doesn’t). Transaction fees can be costly; no HR automations or compliance support.

Banks

International Bank Transfer

International wire transfers are a popular way to pay contractors in other countries. Here’s what you need to consider:

  • Pros: Convenient, direct to contractor’s bank account, no monthly fee.
  • Cons: High fees, transfer takes longer, no automation or tax form collection.

Money Transfer Apps

PayPal

Pros and Cons:

  • Pros: Commonly used, free setup, no monthly fee.
  • Cons: Can be expensive due to various fees, required contractor account can cause delays.

Wise

  • Pros: Low fees, immediate transfers, no per-contractor fee.
  • Cons: New system to manage, limited country availability.

Revolut

  • Pros: Low-cost payments in specific countries.
  • Cons: Complicated fee structure, may require business accounts for contractors.

Payoneer

  • Pros: Supports many countries and currencies, no monthly fee.
  • Cons: Transaction fees can add up, no automation or tax form collection.

Payroll Platforms

Gusto

  • Pros: Pay in 120 countries, no additional monthly fee if already using Gusto, automates payments and tax collection.
  • Cons: Potential need to switch payroll services.

Deel

  • Pros: Serves over 200 countries, automates payments and tax compliance.
  • Cons: Additional monthly fee per contractor, separate management for U.S. team.

Freelancer Recruiting Platforms

Upwork and Fiverr

  • Pros: Integrated hiring and payment process, multiple payment methods.
  • Cons: High transaction fees, lack of automation and tax form features.

FAQs

Do I need to withhold taxes when paying international contractors?

No, contractors handle their own taxes. Use Form W-8 BEN for records.

How much does it cost to pay international contractors?

Costs vary widely; typically lower with payroll platforms.

How do currency fluctuations affect payments to international contractors?

Fluctuating local currencies can affect payment amounts; clear agreements on currency can help.

How do time zones affect payments?

Payments may take longer due to time zone differences and local banking hours.

Can I pay in local currency?

Yes, some payment methods allow payments in local currency or USD.