Freelancing has opened up opportunities for professionals worldwide, offering freedom and flexibility. However, it comes with its own set of challenges, particularly when it comes to receiving international payments. Traditional bank transfers often involve hidden fees, unfavorable exchange rates, and delays that can hurt your cash flow. Thankfully, services like Wise (formerly TransferWise) have emerged to address these issues. In this article, we’ll explore how Wise can help freelancers save money, time, and hassle when dealing with international payments.

Why International Payments Are a Challenge for Freelancers

Freelancers working with clients from different countries often face difficulties when it comes to getting paid. The primary challenges include:

• High Transaction Fees: Traditional banks and services like PayPal often charge exorbitant fees for international transactions.
• Poor Exchange Rates: Banks offer suboptimal exchange rates, meaning freelancers often lose money during currency conversion.
• Delays in Payments: Depending on the countries involved, international payments can take several days or even weeks to process.
• Lack of Transparency: Hidden fees can appear after transactions, making it hard to predict exactly how much a freelancer will receive.

These challenges can negatively impact freelancers’ cash flow, making it harder to budget and plan for their business expenses.

How Wise Works for Freelancers

Wise provides an efficient solution for freelancers, addressing all the issues above. Here’s how it works:

1. Low Fees: Wise charges minimal fees, typically much lower than traditional banks and platforms like PayPal. These fees are clearly stated upfront, so there are no surprises.
2. Real Exchange Rates: Wise uses the real mid-market exchange rate, the rate you’d see on Google, ensuring you get the most out of your international payments.
3. Quick Transfers: Payments sent through Wise can arrive in as little as a few hours, depending on the currency and the recipient’s bank.
4. Multi-Currency Accounts: Freelancers can hold and manage money in multiple currencies, making it easier to invoice clients in their preferred currency without constantly converting back to their home currency.

You can check Wise’s fees and transfer times for your specific transactions.

The Cost-Saving Benefits of Wise for Freelancers

Now that we’ve covered the basics of how Wise works, let’s dive deeper into the cost-saving benefits it offers freelancers.

1. Transparent and Affordable Fees

One of the biggest advantages of Wise is its transparency. Unlike banks and other payment services that hide fees in exchange rates or add them as a surcharge at the end, Wise gives you a clear breakdown of costs from the start. You know exactly how much you’re paying and receiving, helping freelancers budget better.

For example, while PayPal might charge a fee of around 4% for international payments, Wise’s fees can be as low as 0.4% for certain currencies. Over time, this can lead to significant savings, especially for freelancers dealing with large sums of money or frequent transactions.

Compare Wise’s fees with PayPal to see how much you can save.

2. Favorable Exchange Rates

Traditional banks often offer poor exchange rates, meaning freelancers lose a percentage of their earnings just by converting currencies. Wise solves this problem by using the mid-market exchange rate, the same rate you see when you search for currency conversions on Google or XE. This makes Wise one of the most cost-effective solutions for freelancers working with clients from different countries.

View the current mid-market exchange rates that Wise offers for your transactions.

3. Fast Payment Processing

Another pain point for freelancers is waiting for payments to arrive. With traditional banks, it can take several days or even weeks for international payments to clear, especially if multiple currencies or banks are involved.

Wise speeds up this process significantly. Payments can be processed and received in as little as a few hours, which means freelancers can access their funds quickly. For those relying on steady cash flow, this can be a game-changer.

See how quickly Wise transfers money across various currencies.

Wise Multi-Currency Account: A Game-Changer for Freelancers

Wise also offers a multi-currency account, which can be particularly useful for freelancers who frequently work with international clients. This account allows you to:

• Receive Payments in Multiple Currencies: Instead of converting every payment into your local currency immediately, you can keep funds in their original currency until the exchange rate is favorable or you need the funds.
• Hold Balances in Over 50 Currencies: Freelancers can maintain balances in different currencies without opening multiple bank accounts, saving on conversion fees and providing more flexibility.
• Local Bank Details: With Wise, freelancers can get local bank details (like account numbers and sort codes) for major currencies such as GBP, EUR, USD, and AUD. This means you can receive payments like a local, bypassing international fees altogether.

Learn more about the features of Wise’s multi-currency account and how they can simplify payments for freelancers.

Real-Life Example: How Wise Helped Sarah, a Freelance Designer

To illustrate the benefits of Wise, let’s consider the case of Sarah, a freelance graphic designer based in Australia. Sarah works with clients in the U.S., the U.K., and Germany. Initially, she used her traditional bank for payments, but found the fees and poor exchange rates were eating into her profits. Additionally, payments often took up to a week to arrive, creating cash flow issues.

After switching to Wise, Sarah saw immediate improvements. She was able to save around $500 annually on fees and received her payments in under 24 hours. By using Wise’s multi-currency account, she could also hold funds in USD and EUR, only converting them to AUD when the exchange rates were favorable. Sarah’s experience shows how much a simple switch to Wise can make a difference for freelancers.

Key Features Freelancers Should Consider

Freelancers should evaluate these specific Wise features:

• Borderless Account: Allows holding of over 50 currencies and receiving payments in multiple currencies without high conversion costs.
• Real-Time Alerts: Wise can notify you when the exchange rate reaches your desired level, ensuring you convert at the most optimal time.
• Low Fees for Large Transfers: If you regularly receive large payments, Wise’s flat, transparent fees can result in significant savings compared to traditional bank methods.

Explore how Wise’s borderless account can help you manage payments across multiple currencies.

Final Thoughts: Is Wise Right for Freelancers?

If you’re a freelancer dealing with international clients, Wise is likely one of the best tools available to optimize your payment process. With transparent fees, favorable exchange rates, and quick transfers, Wise helps freelancers keep more of what they earn while reducing the stress of managing international transactions.

Start simplifying your payments and explore Wise for freelancers today.