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Most Popular Payment Methods For Freelancers In 2022

by on May 6, 2022 in Business, Media, Small Business, Startups

Working freelance, you pride yourself on being dependable. But when it comes to getting paid, payroll is not always that simple. 

Nationwide there are 55 million freelancers, and the numbers continue to climb. However, about 58% overseas do not get paid on time. Hence, your payment app matters. 

Because the best payment apps can simplify your life, they have pros and cons. With quick transfer speeds to help you manage your money, goodbye high fees. Hello, MORE money!

10 Aspects To Consider When Choosing A Payment Method 

With online jobs expanding globally, geographical location is becoming obsolete. But a concern after landing your new gig is how will your new employer process your payroll. 

The most popular freelancer payment methods have criteria to help you manage your money from your device (without traditional banks for payroll).

Features the best online methods of payment should have include:


The app should let you receive money in your particular country/region.


Same-day payments with minimal processing time help reduce payday delays.


Low or fee-free services reduce/eliminate transfer, conversion, and transaction fees.


Instant access to your money can help you consistently manage your finances.


Similar to FDIC-insured banks, your mobile payment site’s insurance protects against thefts.


Some apps integrate with your credit or debit card and PayPal.


Unrestricted or high limits mean fewer restrictions on your money.


Stellar reviews usually mean there is prompt service and quick resolutions to requests.


The highest encryption and 2-step verification protect senders and receivers.


24/7/365 support means you can avoid delays if you have account questions.

Payment #1 Cash App

Established in 2021, the app charges 1.5% fees for transfers and 3% for credit card transfers. Pay your taxes, do micro-investing, and you can even use Cash App for online gambling. With fraud detection, securely exchange money and access direct deposit. 

Due to online scams, avoid giving out your pin, password, and other sensitive data. Cash App is also not FDIC insured and does not offer joint bank or business accounts. 

Payment # 2 Payoneer

The Upwork partner accepts multiple currencies. Cheaper than PayPal, use convenient, one-click features like SMS to pay bills and get paid online.


  • Works with 150+ currencies in over 200 countries
  • Receive money fee-free from other users, has a flat 3% or 1% for eChecks
  • Payments upload in about 2-hours, and they offer a reloadable MasterCard


  • Withdrawal fees are about 2% higher than other services
  • Fees add up (prepaid MasterCards are $29.95 annually, ATM fees are $3)
  • Money transfers can take up to 5-days

Payment #3 Skrill

Skrill (formerly Moneybookers) started in 2001. Advantages of the secure wallet include free money transfers (other users, merchants) and a prepaid card for ATMs. It also integrates with social media. 

With more than 30 million users, and 35,000 global partners, drawbacks are fees for withdrawals, handling, dormant accounts, and currency conversions. 

Account verification (passport/ID, utility bill) is necessary to increase your limit. International transfers add 3.99% + the current exchange rate. 

Payment #4 PayPal

As the most well-known and reputable payment site, PayPal is an excellent choice for digital nomads on sites like Freelancer and Fiverr. 


  • Founded in 1998, the free service works in 200+ countries and accepts 25+ currencies.
  • Send/receive money by email within minutes (but eChecks, bank transfers take longer)
  • Excellent buyer protection program for refunds/resolutions and gives you 180-days with claims.


  • Charges high fees, up to 2.9% + a .30-cent fixed fee in the US and 5% in other countries
  • Foreign currency fees run 4.5% for conversion rates
  • Account holds for dormant accounts or multiple disputes can last 21-days to 6-months

Payment #5 Bitcoin

Bitcoin is gaining in popularity. A major advantage when your employer pays you is your coins might gain in value (cha-ching!). Other perks include instant, real-time payments for more liquidity and steady income if you complete projects by milestones.

Drawbacks are price fluctuations and security breaches. Your coins could be worthless when you cash out. One Bitcoin in June was worth $40,406.27. A week later, it dipped to $31,676.60 (what a pay cut!). 

With no safety net for intermediaries, only use the most reputable and verified wallets to avoid hackers trolling for technical flaws. 

Payment #6 Wise 

Wise (Transferwise) is one of the latest digital banks for converting customer data into cash. Select your preferred payment method and transfer money (without bank fees). 


  • Founded in 2010, Wise has a solid social media presence
  • Quick cash transfers without high fees (under 1%) post in minutes or within two days
  • Good for millennials who do not want traditional banking 


  • Transfers with other users might present a learning curve for newbies
  • The minimum transfer amount is about $250
  • High-value transactions have larger fees, e.g., a 1% fee on $100 is $1 but $100 on $10,000

Payment #7 Stripe

Founded in 2009, Stripe is new but offers Stripe Payments for freelancers.


  • Lowest fees of 2.9% with an extra $0.30 flat fee for US transactions and an additional 1% conversion fee for international transactions 
  • Convenient two-day rolling payouts help ensure you receive your pay daily
  • No minimum withdrawal limits 


  • Not as well-known as other, more established channels 
  • Limited to about 26 countries for payments
  • Disputes have a $15 fee and a separate Stripe fee for claim denials.

Payment #8 2Checkout

Founded in 1999 under parent group Verifone, 2Checkout works with 50,000+ merchants globally. It accepts credit and debit cards, Neteller, and PayPal. Serving 200+ countries in 30+ languages, they accept 100+ currencies. 


2Checkout has a simple interface, flat-rate prices, and a 10% cashback bonus program. Low international payment rates make it a PayPal competitor. 


Complaints were related to accounts terminating without sufficient notice and held funds.

Payment #9 Western Union

Western Union is PCI DSS compliant and among the most well-known money transfer options. 

Accepted in over 200 countries, use one-touch fingerprint ID or transfer tracking with MTCN tracking numbers. 

Fees run from $5-$45, and funds are released immediately or within an hour. Other pros include sending payments with email, bank accounts, Apple Pay, or a credit/debit card. Access 61,000 US agent locations or use a mobile wallet. Convert your funds to international currencies for a 2.5% transaction fee. 

Drawbacks include that fees can range from 2.9 to 3.4% per transaction. 

Payment #10 Google Pay

Using Google Pay or Google Wallet gives you a free application for sending and receiving money. Make purchases and pay bills without carrying cash. 

With secure data storage, use the platform globally. Freelancers can link their bank accounts and make mobile payments or credit card payments with merchants (up to 4% fees). 

Drawbacks include customer support is sometimes hard to reach and varies by merchant. Your account can also lock if you send too many undelivered emails, use the wrong password multiple times, or access your account from multiple locations/devices.

Payment #11 Bank Deposits

Using your bank for deposits has advantages like high-grade security and convenient access to your money. 

Drawbacks include overdraft protection limitations and high fees. Interest is minimal for savings accounts and money markets (as low as 0.01%). Hence, online banks (without brick-and-mortar locations) might offer better rates.

Payment #12 Venmo

Established in 2011, Venmo offers peer-to-peer payments. Advantages include simplicity, low fees, fast money transfers, and secure encryption. With over 500 million users, the app is becoming widely accepted. 

Drawbacks include online scams, international transactions are not available, and you cannot cancel payments, which are public by default. 

Payment Methods FAQ 

Often, gig workers will search online for the best way to get paid freelance or look up the most popular payment apps. Because the most popular payment methods online offer different features, here are answers to commonly asked questions.

Which payment method is best for freelancers?

Paypal and Payoneer are great for new freelancers. However, for fee-free transactions, try Cash App. Other popular freelancer payment methods include Stripe and Venmo.

Is PayPal good for freelancers?

Some freelancers start with PayPal but factor in their 5% fee. 

Which PayPal account is best for a freelancer?

PayPal accounts are free and include personal or business options. 

Do you get taxed for these payment methods?

No, they do not tax accounts. However, you must pay taxes on your income. 

Wrapping It Up

Freelancing is a lucrative way to generate income. The most popular online payment systems with low fees receive payments and conveniently send money when you want. 

The list of payment methods includes well-known options like PayPal and top payment apps like Payoneer and Cash App. With quick turnarounds and the highest encryption, leverage these payment apps without paying high transaction or currency conversion fees.

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