Best Way to Pay International Contractors and Remote Workers in 2026

Why traditional bank wires are the wrong default for contractor payments

$847 — Average annual overspend per overseas contractor (wire-only payers)

The five realistic options for paying overseas contractors

Contractor payment method comparison: $2,000 USD payment

Method	Sending Fee	FX Markup	Total Cost	Speed	Compliance Tools
Bank Wire (SWIFT)	$25–45	1.5–3%	$65–110	3–5 days	None
Wise Business	$8–20	0%	$8–20	1–2 days	None
Payoneer	$3	2%	$43	1–3 days	Basic
Deel	$0 payment fee	0.5–1.5%	$10–30 + $49/mo	1–2 days	Full (contracts, 1099)
USDC on Stellar	$0.01–2	~0.2%	$2–6	< 1 hour	None (manual)

1. Determine your compliance requirements first

2. Match the payment method to the contractor's country

3. Set up Wise Business for traditional corridors

4. Set up crypto rails for high-volume or high-fee corridors

5. Document payments properly for accounting

Don't use personal payment apps (Venmo, Zelle, Cash App) for contractor payments

When to upgrade to a contractor management platform

72% — Of US businesses still use bank wires as their primary contractor payment method

Payment method recommendation by contractor count and corridor

Scenario	Recommended Method	Estimated Annual Savings vs. Wire
1–2 contractors, EU/UK/AU	Wise Business	$600–1,200/year
1–2 contractors, Nigeria/Mexico/India	Wise Business + crypto rails	$900–1,800/year
3–10 contractors, mixed countries	Wise Business (batch payments)	$2,000–8,000/year
5+ contractors, compliance concerns	Deel or Remote	Compliance risk reduction + $1,500–3,000/year
High-volume ($10k+/payment)	USDC on Stellar via Coinbase	$400–800 per large payment

See exact costs for your contractor's country

Related guides

Frequently asked questions

What is the cheapest way to pay an overseas contractor?

USDC on Stellar or Tron is the cheapest option, typically costing $2–8 total regardless of payment size. For contractors in countries with established crypto off-ramps (India, Mexico, Nigeria, Indonesia, South Africa), this saves 80–95% compared to bank wires. Wise Business is the cheapest traditional option at 0.4–1.5% with no FX markup.

Do I need to send a 1099 to an overseas contractor?

Generally no. If your contractor is not a US person (not a US citizen or resident), you don't file a 1099-NEC. However, you should collect a signed W-8BEN form from each non-US contractor and keep it on file. This documents their foreign status and protects you in an audit. Platforms like Deel collect this automatically.

Can I pay a foreign contractor in their local currency?

Yes. Wise Business sends in local currency with a mid-market exchange rate and no FX markup. Deel and Payoneer also support local currency payouts. Crypto rails (USDC) are sent in USD-denominated stablecoins and converted to local currency when the contractor withdraws from their local exchange.

Is it legal to pay contractors in cryptocurrency?

In most jurisdictions, yes—paying a contractor in cryptocurrency (including stablecoins like USDC) is legal and treated as paying the USD equivalent for tax purposes. The contractor is responsible for their own local tax treatment of the received funds. You should document the USD value at time of payment in your accounting records.

How do I pay contractors in countries not supported by Wise?

Payoneer has the broadest coverage including Pakistan, Bangladesh, and several African markets not on Wise. Crypto rails (USDC via Stellar or Tron) work anywhere the contractor can access a local crypto exchange, which now covers most countries. Deel also has extensive country coverage via local banking partnerships.

Compare live rates across 370+ corridors on RemitRoutes · methodology.