Are you prepared to start the thrilling experience of working with foreign contractors?

These talented individuals worldwide can bring your business a fresh perspective and expertise. Picture them as jet-setting professionals, armed with laptops and passports, ready to tackle challenges wherever they may arise.

But before diving into the nitty-gritty of payment methods and how to pay international contractors, let’s start by understanding what an international contractor is.

What is an International Contractor?

An International Contractor is like a global superhero of the business world, equipped with skills and expertise that transcend borders. These talented individuals offer their services to companies in different countries, bringing a touch of international flair to projects.

Foreign contractors work remotely, harnessing the power of technology to bridge the gaps between nations. They possess unique skills, often specialized in their respective fields, and are adept at navigating the complexities of cross-cultural collaboration. Whether developing cutting-edge software, crafting captivating marketing campaigns, or providing strategic consulting, these contractors add a fresh perspective and a dash of diversity to any project they undertake.

Foreign contractors can transcend geographical limitations. They possess the agility to adapt to different work cultures, time zones, and languages. Physical boundaries do not limit their contributions; they integrate their expertise with teams and projects worldwide.

By tapping into the vast talent pool of international contractors, businesses can harness the power of diversity and innovation. These contractors offer a fresh perspective, a wealth of knowledge, and a global network that can propel companies to new heights.

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5 Best Ways of Paying International Contractors

1. PayPal

PayPal, the renowned champion of online payments, is a versatile and widely accepted method for paying international contractors.

By harnessing the power of PayPal, you can facilitate seamlessly paying foreign independent contractors, promoting smooth collaboration and fostering trust. Remember the associated fees and account limitations, and you’ll be well on your way to a successful payment experience.

How to Make a Payment Using PayPal?

Using PayPal to pay international contractors is as smooth as gliding down a digital stream. Here is a step-by-step manual to help you begin paying foreign contractors:

Please create an Account: Register a PayPal account on the company’s website. You can select a personal or business account based on your needs.

Link Your Funding Source: To make payments, you must link your PayPal account to a funding source such as a bank or credit card. This allows PayPal to withdraw funds for expenses.

Contractor’s PayPal Account: Request your international contractor’s PayPal email address associated with their PayPal account. This is crucial for transferring funds securely.

Send a Payment: Now, it’s time to send your contractor their hard-earned payment. Once you’ve signed in to PayPal, select the “Send & Request” option. Enter the contractor’s PayPal email, specify the payment amount, select the currency, and add relevant notes or project details.

Review and Confirm: Once satisfied, click the “Send Payment Now” button, and voila! Your payment is on its way to the contractor’s PayPal account.

Pros of Using PayPal

Global Reach: PayPal is a practical choice for international transactions because it is well known and accepted in many nations.

Security: PayPal employs robust security measures to protect your financial information and offers buyer/seller protection for added peace of mind.

User-Friendly: PayPal’s intuitive interface makes it easy to navigate, even for those new to online payments.

Quick Transactions: Payments sent through PayPal are typically processed instantly, allowing contractors to access their funds promptly.

Currency Conversion: PayPal offers currency conversion services, enabling you for paying foreign independent contractors in their preferred currency without the hassle of manual conversions.

Cons of Using PayPal

Transaction Fees: PayPal charges fees for particular transactions, such as receiving cross-border payments or converting currencies, which can impact the overall cost.

Currency Conversion Fees: While PayPal facilitates currency conversions, they may apply a fee for this service. It’s essential to consider these additional costs.

Account Limitations: PayPal has certain restrictions and limitations on account usage, affecting the amount you can send or receive.

Potential Disputes: As with any payment platform, there is a slight risk of disputes or issues arising between you and the contractor. It’s crucial to maintain clear communication and address any concerns promptly.

Withdrawal Process: Contractors may need to go through an additional step to transfer funds from their PayPal account to their bank account, which can take a few days.

2. Moon Invoice

Moon Invoice- payment processing software, a rising star in the realm of payment methods for international contractors, offers a comprehensive invoicing platform that simplifies the payment process. If you are wondering how to pay international contractors, Moon Invoice is your answer.

Moon Invoice offers a user-friendly interface, customizable invoicing options, and seamless payment tracking capabilities, making it a worthy contender for businesses seeking a comprehensive payment method for foreign contractors.

With Moon Invoice, you’re stepping into a world where invoices become elegant masterpieces, payments flow smoothly, and financial management becomes a breeze. So, embrace the lunar glow of Moon Invoice and unlock a realm of efficiency and professionalism in your payment processes.

How to Use Moon Invoice as a Payment Method?

Using Moon Invoice to streamline payments for international contractors is as smooth as dancing under a moonlit sky.

Sign Up and Set Up Your Account: Begin by signing up for a Moon Invoice account on their website. Follow the simple registration process and set up your account with your business information.

Create and Customize Invoices: Moon Invoice allows you to create professional invoices tailored to your brand. Customize the invoice template, add your logo, and include relevant details such as project description, payment terms, and due dates.

Add Contractor Details: Input your international contractor’s details, including their name, email address, and preferred payment method.

Generate and Send Invoices: With a few clicks, generate invoices for your foreign contractors. Moon Invoice offers the flexibility to create recurring invoices for regular payments or past invoices for specific projects. Review the invoice details and hit the send button to deliver it directly to the contractor’s email.

Contractor Payment Options: Moon Invoice supports multiple payment gateways, allowing contractors to choose their preferred method. Include payment options such as PayPal, credit card, or bank transfer details in the Invoice, allowing contractors to select their desired payment method.

Track Payments and Manage Finances: Moon Invoice provides a centralized platform to track payments, view outstanding invoices, and manage your financial records. Keep an eye on payment statuses and receive notifications when payments are accepted.

Pros of Using Moon Invoice

Customizable Invoices: Moon Invoice allows you to create professional and visually appealing invoices that align with your brand image, enhancing your business’s professionalism.

Expense Tracking: The platform includes features to track project expenses, helping you accurately manage and account for project-related costs.

Multiple Payment Gateways: Moon Invoice supports various payment gateways, allowing foreign contractors to choose their preferred payment method, making it convenient.

Automated Reminders: Moon Invoice automates reminders for overdue payments, saving you time and effort in tracking down late payments.

Financial Management: Moon Invoice provides an overview of your financial records, allowing you to monitor cash flow, generate financial reports, and gain insights into your business’s financial health.

Cons of Using Moon Invoice

Limited Name Recognition: Compared to established platforms like PayPal, Moon Invoice may have a different name recognition or general acceptance level, which could lead to some contractors needing to familiarize themselves with the platform.

Learning Curve: As with learning any new piece of software, Moon Invoice has features and functions that may take some getting used to.

Limited Payment Method Support: While Moon Invoice supports multiple payment gateways, there may be some payment methods preferred by certain contractors that are not available on the platform.

3. Tipalti

Tipalti offers a robust and comprehensive platform that streamlines the payment process for international contractors. It combines compliance, automation, and global payment capabilities, allowing businesses to focus on their core operations while ensuring efficient and secure payments to contractors worldwide.

How to Use Tipalti as a Payment Method?

Harnessing the power of Tipalti to streamline payments for international contractors is as smooth as gliding through a digital landscape.

Sign Up and Set Up Your Account: Begin by signing up for a Tipalti account on their website. Follow the registration process and provide the necessary information about your business.

Contractor Onboarding: Add your foreign contractors to the Tipalti platform by providing their details, such as name, email address, and preferred payment method. Contractors will receive an invitation to join the platform and provide their payment details.

Payment Setup: Configure your payment settings within Tipalti. Set up payment frequencies and any applicable thresholds.

Payment Approval: Once contractors submit their payment details, Tipalti provides a verification and approval process to ensure accuracy and security. You can review and approve the payment details before processing the payments.

Process Payments: The platform handles the intricacies of currency conversion, compliance checks, and payment execution, ensuring a seamless transfer of funds to your contractors.

Payment Tracking and Reporting: Tipalti provides comprehensive reporting and tracking features, allowing you to monitor payment statuses, generate payment reports, and gain insights into payment activities.

Pros of Using Tipalti

Streamlined Payment Process: Tipalti simplifies the payment process for international contractors by automating currency conversions, compliance checks, and payment execution, saving you time and effort. It simplifies

Global Payment Reach: With Tipalti, paying foreign contractors worldwide becomes easy, supporting various countries and currencies and ensuring seamless international transactions.

Enhanced Compliance: Tipalti helps businesses comply with tax regulations and international payment rules, reducing the risk of non-compliance and ensuring a smooth payment experience.

Payment Options: Tipalti offers multiple payment methods, allowing contractors to receive funds through their preferred channels, including bank transfers, PayPal, wire transfers, etc. for paying foreign independent contractors.

Payment Tracking and Reporting: Tipalti provides real-time visibility into payment statuses and generates comprehensive reports, giving you a clear overview of your payment activities and facilitating financial management.

Cons of Using Tipalti

Learning Curve: Like any new software, there may be a learning curve involved in familiarizing yourself with the features and functionalities of Tipalti.

Pricing: Tipalti operates on a pricing structure that may involve fees based on transaction volumes and usage, which could impact the overall cost of your business.

Integration: While Tipalti integrates with various accounting and ERP systems, there may be some instances where additional integration efforts or customizations are required.

4. Payoneer

Payoneer, a renowned name in global payments, offers a versatile platform that simplifies international payments for contractors. Payoneer’s robust platform, global connectivity, and secure payment mechanisms make it a reliable choice for businesses seeking to pay foreign contractors seamlessly.

By leveraging Payoneer, you unlock a world of efficient cross-border payments, empowering your business to collaborate with talent from around the globe.

How to Use Payoneer as a Payment Method?

Using Payoneer to facilitate payments for international contractors is as smooth as a harmonious global symphony.

Sign Up and Create an Account: Begin by signing up for a Payoneer account on their website. Follow the registration process and provide information about yourself and your business.

Contractor Onboarding: Add your foreign contractors to your Payoneer account by providing their details, such as name, email address, and preferred payment method.

Payment Initiation: Once contractors are added to your Payoneer account, you can initiate payments by specifying the payment amount, currency, and contractor details.

Payment Execution: Payoneer facilitates secure and efficient payment execution. Funds are transferred from your account to the contractor’s Payoneer account, providing a seamless transaction experience.

Contractor Payment Options: Contractors can access their funds through various withdrawal options provided by Payoneer, including local bank transfers, prepaid Mastercard, or Payoneer’s online wallet.

Payment Tracking: Payoneer offers a user-friendly interface that allows you to track payment statuses and monitor the progress of your transactions. You can easily view the payment history and stay informed about the payment process.

Pros of Using Payoneer

Global Reach: Payoneer’s extensive network allows you to pay overseas contractor in different countries, providing a global payment solution.

Currency Conversion: Payoneer offers currency conversion services at competitive rates, enabling you to pay overseas contractor in their preferred currency without manual conversions.

Multiple Withdrawal Options: Contractors can choose from various withdrawal methods provided by Payoneer, allowing them flexibility in accessing their funds according to their preferences.

Security and Compliance: Payoneer employs robust security measures to protect financial transactions and ensures compliance with international regulations, giving you peace of mind.

Customer Support: Payoneer offers dependable customer service, providing help and direction as required to ensure a simple payment process.

Cons of Using Payoneer

Withdrawal Fees: Payoneer may charge fees for specific withdrawal methods, which could impact the platform’s overall cost.

Account Verification: Payoneer requires thorough verification processes to ensure security and compliance, which might take some time to complete.

Limited Integration: While Payoneer integrates with various platforms, there may be instances where additional integration efforts or customizations are required to integrate the payment process fully.

5. Western Union

Western Union, a trusted name in the realm of global money transfer, provides a reliable platform for international payments. Harnessing the power of Western Union to facilitate payments for international contractors is as smooth as a melody from a distant land.

How to Use Western Union as a Payment Method?

Find a Western Union Agent or Register: There are two ways to utilise Western Union. You can either sign up for an account on their website or locate a nearby Western Union agent in your area.

Provide Payment Details: Whether online or at an agent location, provide the necessary details, such as the recipient’s name, country, and the amount you wish to send.

Choose Payment and Delivery Options: Western Union offers various payment options, including credit/debit cards or bank transfers. Select the method that suits your preferences.

Make the Payment: Follow the instructions provided by Western Union to complete the payment process. Online payments can be made using the provided payment options, while agent locations allow you to make payments in person.

Share Transaction Details: After the payment is made, Western Union will provide you with a transaction reference number.

Recipient Receives the Funds: The recipient can visit a Western Union agent location or use the designated method to receive the funds.

Pros of Using Western Union

Global Network: It is simple to transfer and receive money internationally thanks to Western Union’s large network of partners and agents.

Speedy Transfers: Western Union offers fast transfer times, allowing for quick access to funds by the recipient.

Cash Pickup Option: Recipients have the flexibility to receive funds as cash, making it convenient for individuals who may not have access to bank accounts.

Multiple Payment Options: Western Union supports various payment methods, including credit/debit cards and bank transfers, giving you flexibility in choosing the most convenient option.

Established Reputation: Western Union has been a trusted name in the industry for decades, providing reassurance and peace of mind when it comes to money transfers.

Cons of Using Western Union

Fees: Depending on the transfer amount, destination, and preferred payment method, Western Union charges fees for their services. These fees should be considered as they can impact the overall cost.

Exchange Rates: Western Union may apply its own exchange rates when converting currencies, which might only sometimes be the most favorable.

Service Availability: While Western Union has a vast network, there may be certain remote locations where their services are limited or not available.

Offering Benefits to International Contractors

Offering benefits to international contractors is a generous gesture and a strategic move that can yield numerous advantages for both parties.

Let’s explore the benefits of providing benefits to international contractors:

Attracting Top Talent: By offering enticing benefits packages, you can attract highly skilled international contractors with multiple options. Competitive benefits can set your organization apart and make it an attractive destination for top talent in the global market.

Retaining Skilled Contractors: Providing benefits demonstrates your commitment to the well-being and satisfaction of your international contractors.

Motivating Performance: Benefits can be powerful motivators, inspiring international contractors to deliver their best work. When contractors have access to comprehensive benefits like contractor insurance, retirement plans, or professional development opportunities, they feel a sense of security and fulfillment, leading to enhanced productivity and quality of work.

Enhancing Loyalty and Engagement: When international contractors receive benefits that cater to their needs, they develop a sense of loyalty towards your organization. This loyalty fosters a stronger connection and commitment, increasing their engagement and willingness to go the extra mile for your projects.

Building a Positive Reputation: Offering benefits to international contractors reflects your organization’s reputation positively. Contractors who have had positive experiences working with your company are likely to share their satisfaction with their professional networks, contributing to a good employer brand and attracting more top-tier contractors in the future.

Promoting Collaboration and Teamwork: Benefits can create a sense of inclusivity and camaraderie among international contractors, fostering a collaborative work environment.

Compliance with Local Laws and Regulations: By offering perks, you may ensure that your overseas contractors are abiding by the rules and regulations of the nations where they do business.

Mitigating Risks and Legal Issues: Offering benefits to international contractors can minimize the risk of legal issues or disputes related to contractor classification. Occasionally, misclassifying contractors as employees can lead to legal and financial repercussions.

Cultivating Positive Working Relationships: Benefits can contribute to building positive and long-lasting relationships with your international contractors. It shows that you value their contributions and care about their well-being, creating a mutually beneficial working partnership that can extend beyond the duration of a single project.

Demonstrating Corporate Social Responsibility: Providing benefits to international contractors aligns with the principles of corporate social responsibility.

What are the Different Types of International Contractors?


Freelancers often work remotely, making them an attractive option for organizations seeking global talent.


Consultants are hired for their knowledge and experience to help organizations solve complex problems, develop strategies, or implement changes.

Offshore Contractors

Offshore contractors are individuals or companies in different countries from the organization hiring their services. They provide various services like software development, customer support, and administrative tasks.

Expatriate Contractors

Expatriate contractors temporarily relocate to another country to work on specific assignments. They are often employed by multinational organizations and bring their expertise and knowledge to support international projects or manage operations in foreign markets.

Global Mobility Contractors

Global mobility contractors are professionals who assist organizations and individuals with the complexities of international assignments. They provide support in areas such as visa and immigration processes, relocation services, tax compliance, and cultural training.

Remote Contractors

Remote contractors work from their preferred location, often utilizing digital tools and technology to collaborate with organizations across borders. They offer flexibility regarding time zones and allow organizations to tap into a global talent pool without needing a physical presence.

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Pros and Cons of International Contractors

International contractors offer a range of advantages and considerations for organizations looking to expand their global reach or leverage specialized skills from around the world. Let’s explore the pros and cons of engaging international contractors:

Pros of International Contractors

Access to Global Talent: Engaging international contractors provides access to a diverse pool of talent from different countries and cultures.

Flexibility and Scalability: International contractors offer flexibility regarding project duration and resource scalability. Organizations can engage contractors for specific projects or periods, allowing them to adapt their workforce to changing business needs without long-term commitments or overhead costs.

Cost Efficiency: International contractors often provide cost advantages compared to hiring permanent or local contractors. Factors such as lower labor costs or favorable exchange rates in certain countries can contribute to overall cost savings.

Specialized Expertise: International contractors bring unique knowledge and experience, offering technical expertise that may not exist within the organization. This allows for efficiently completing specific tasks or projects, reducing the learning curve and improving overall project outcomes.

Cultural Diversity and Global Perspective: Contractors from different backgrounds bring diverse perspectives, cultural insights, and a global mindset that can enrich teamwork, creativity, and problem-solving.

Cons of International Contractors

Legal and Compliance Complexities: Engaging international contractors may involve navigating complex legal and compliance requirements, including tax regulations, labor laws, and visa/immigration regulations.

Communication and Language Barriers: Working with foreign contractors may be difficult due to communication style variations, time zone variances, and language problems.

Dependency on External Resources: Organizations relying heavily on international contractors may face risks associated with reliance on external resources. If key contractors become unavailable or choose to discontinue their services, it could disrupt ongoing projects and impact business operations.

Cultural and Work Style Differences: Cultural differences in work practices, communication norms, and business etiquette may require additional effort to navigate and align expectations.

Limited Control and Integration: Unlike permanent employees, international contractors operate as independent entities, which means organizations have limited control over their work processes, availability, and work hours. Integrating contractors seamlessly into the organization’s workflows and culture can be challenging.

Data Security and Intellectual Property: Engaging international contractors may involve sharing sensitive information, intellectual property, or proprietary data.

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How to Choose Right International Payment Method for Your Business?

Choosing a suitable international payment method for your business is crucial to ensure smooth financial transactions and minimize costs.

Understand Your Business Needs: Consider factors such as the volume and frequency of international payments, the countries you operate in, the currencies involved, and the payment preferences of your contractors or suppliers.

Evaluate Payment Options: Research and evaluate different international payment methods available. Some standard options include bank transfers, online payment platforms, specialized global payment providers, and traditional techniques like letters of credit or checks.

Consider Security and Fraud Protection: Security is paramount regarding international payments.

Assess Transaction Costs: Understand the cost structure associated with each payment method. Evaluate factors such as transaction fees, foreign exchange rates, currency conversion fees, and hidden charges.

Evaluate Speed and Convenience: Consider how payments can be processed and received.

Consider Currency Conversion: If you frequently deal with multiple currencies, consider payment methods that offer competitive exchange rates and allow for easy currency conversions.

Assess Integration and Reporting Capabilities: If you use the best electrical contractor software, evaluate the compatibility and integration options with the payment methods you are considering.

Customer Support and Reliability: Make sure the payment option you choose gives dependable customer service. Customer service that is quick and effective may be quite helpful in addressing any problems or questions relating to payments.

Compliance with Regulations: Ensure that the chosen payment method complies with international financial regulations and the legal requirements of the countries involved.

Seek Recommendations and Feedback: Consult with other businesses in your industry or network to gather insights and recommendations regarding international payment methods. Their experiences and feedback can provide valuable guidance in selecting a suitable payment method for your business.

Moon Invoice- payment processing software, offers a reliable and user-friendly platform that simplifies invoicing, boosts business efficiency, and provides comprehensive financial management features. You can also create an invoice for free, create a business invoice template, contractor invoice template, pay overseas contractors, and more.

Take control of your invoicing today with Moon Invoice, simplify how to pay international contractors, and experience the convenience and effectiveness it brings to your business.


Jayanti Katariya
Jayanti Katariya About the author

Jayanti Katariya is the founder & CEO of Moon Invoice, with over a decade of experience in developing SaaS products and the fintech industry. He holds a degree in engineering. Since 2011, Jayanti's expertise has helped thousands of businesses, from small startups to large enterprises, streamline invoicing, estimation, and accounting operations. His vision is to deliver top-tier financial solutions globally, ensuring efficient financial management for all business owners.