Freelance Payment Gateway Comparison for Freelancers in the US and UK

Freelancers today juggle clients around the world, so choosing the right payment gateway or processor is critical. The best solutions let you accept payments easily, handle multiple currencies, and keep fees low. In this guide we compare major platforms used by freelancers – PayPal, Wise (TransferWise), Payoneer, Stripe, Deel, Revolut and others – focusing on their fees, exchange rates, payout speed, integration options, multi-currency support, tax/documentation features, and more. We highlight the pros and cons for US and UK freelancers and suggest which “freelancer payment solutions” best suit each use case.

Why Choosing the Right Payment Gateway Matters

Freelancers need to invoice clients and receive payments in various currencies. Key factors include:

• Transaction Fees: Percentage plus fixed fees charged per payment (domestic vs international).
• Exchange Rates: How closely the provider’s rate matches the mid-market rate (lower is better) and conversion markups.
• Payout Speed: How fast money reaches your bank or card (instant vs days).
• Integration & Invoicing: Support for online payment links, APIs for websites, and built-in invoicing tools.
• Ease of Use & Support: User interface simplicity and quality of customer service.
• Multi-Currency Handling: Availability of local bank details or wallets in multiple currencies.
• Compliance & Tax Docs: KYC requirements, tax reporting (e.g. 1099-K in the US), and invoicing support.

Below we profile each major gateway, then summarize and tabulate key differences.

PayPal

Overview: PayPal is one of the most widely accepted payment platforms globally. Freelancers can send invoices via PayPal and embed “Pay Now” buttons on websites. It supports multi-currency balances and instant transfers between PayPal accounts.

• Fees (US): In the US, PayPal charges 2.99% + $0.49 for domestic credit/debit card transactions. For each international payment, PayPal adds 1.50% on top (so a US freelancer receiving an EU payment would pay ~4.49%).
• Fees (UK): In the UK, PayPal’s standard seller fee is 2.90% + £0.30 for UK-to-UK transactions. Cross-border fees are an additional 1.29% (from EEA countries) or 1.99% (from all other countries), so a UK freelancer receiving a non-EEA payment pays ~4.9% total.
• Exchange Rates: PayPal adds a hefty currency conversion spread (3–4%) to the base rate. In practice, PayPal often applies 4% over the mid-market rate on payments involving conversion.
• Payout Speed: Funds arrive in your PayPal balance instantly. Withdrawing to a linked bank account usually takes 1–3 business days (standard transfer is free), or you can pay a small fee for instant withdrawal.
• Integration: Excellent developer support (REST API, hosted checkout) and plug-ins for e-commerce. Freelancers can send built-in PayPal invoices and request payments via email. Almost all platforms (e.g. freelancing marketplaces, invoicing apps) allow PayPal integration out of the box.
• Ease of Use: The web and mobile apps are generally user-friendly, though PayPal has a reputation for strict account holds or disputes. Customer support is largely online or via forums, which can be slow.
• Multi-Currency: PayPal lets you hold balances in dozens of currencies. You can invoice clients in their currency, but converting inside PayPal incurs the high 3–4% fee.
• Compliance/Taxes: In the US, PayPal issues IRS Form 1099-K to users who receive over $600 in payments in a year (reflecting the 2023 law change), helping freelancers track income. UK users receive no official tax form; instead, keep PayPal statements and report income via Self Assessment (convert currencies at HMRC rates).

Pros: Universal acceptance; no monthly fee; easy setup; instant transfers between PayPal accounts. Cons: Relatively high fees on cross-border payments; expensive currency conversion; mixed reviews on customer support.

Stripe – Developer-Friendly Payment Processor

Overview: Stripe is a popular online payment platform enabling websites and invoicing tools to accept credit cards and digital wallets. It requires a bit more setup (e.g. API keys) but offers a polished, secure checkout experience. Freelancers can use Stripe to bill clients via invoices, hosted payment links, or embedded checkout forms.

• Fees (US): Stripe’s standard rate is 2.90% + $0.30 per successful card payment. International cards incur an additional 1.50% fee, and currency conversion adds another 1%. So a US freelancer accepting payment from abroad would pay ~5.4% (2.9+1.5+1%) plus $0.30.
• Fees (UK): Thanks to EU fee caps, Stripe’s UK fees are lower. Local UK payments are 1.5% + £0.20 for standard Visa/Mastercard (and 1.9% for some premium cards). Stripe charges about 3.9% + £0.20 for non-UK cards, plus 2% on currency conversion (smart combined into those fees).
• Exchange Rates: Stripe uses the prevailing card network rates with no markup except the stated 1% (US) or 2% (UK) conversion fee. These are lower than PayPal’s 3–4% spread.
• Payout Speed: Stripe holds your first payout for about 7–14 days after initial use, then drops to a rolling schedule (typically 2 business days in the US). UK accounts often payout on a weekly schedule by default (though this can vary). Instant payouts to your card are available for a 1% fee.
• Integration: Stripe is built for developers: it has robust APIs, pre-built UIs (Stripe Checkout), and SDKs for most languages. Freelancers can use Stripe Invoicing (built-in invoicing at 0.4% per invoice) or payment links. It easily integrates with sites (WordPress, Shopify) and accounting software.
• Ease of Use: Stripe’s dashboard is clean and detailed. It supports 100+ payment methods (cards, Apple Pay, ACH, etc.). Support includes documentation and chat; users often find it responsive and helpful.
• Multi-Currency: Accepts 135+ currencies. Funds are typically deposited in one base currency (e.g. USD for a US account, GBP for UK). You can set up multiple bank accounts in different currencies to receive each currency natively.
• Compliance/Taxes: Stripe issues 1099-K forms to eligible US freelancers (if you hit the IRS threshold) and handles VAT/Sales tax if you enable Stripe Tax. UK businesses do not get a special tax form from Stripe, so again you use Stripe reports for self-assessment.

Pros: Highly customizable; competitive fees (especially in UK); supports many currencies; great developer tools. Cons: Initial setup and Stripe account approval take some time; first payouts are delayed (risk management); not ideal if you lack a website or coding experience (though payment links help).

Wise (TransferWise) – Low-Cost Multi-Currency Account

Overview: Wise is a fintech “multi-currency account” geared toward minimizing fees on international payments. Freelancers can get local bank details (IBANs/ACH/BECS) for USD, EUR, GBP, AUD, NZD, etc., so clients can pay them “like a local” with zero incoming fees. Wise’s biggest strength is near mid-market currency rates with only tiny fees.

• Fees/Exchange: Wise never hides fees in the rate. You pay a small percentage (often 0.5–1%) to convert between currencies (varies by pair). As their site states, “we never inflate exchange rates or charge you to receive international payments”. For example, converting USD to GBP or EUR to USD is typically around 0.45–1% of the amount.
• Receiving Payments: Wise provides free receiving accounts in USD, GBP, EUR, AUD, etc.. A US client can transfer USD to your Wise US account via ACH (cheap), or a UK client can push GBP to your GBP account, all with no Wise fees. PayPal or card payments can be funneled into Wise by first requesting a bank transfer.
• Payout Speed: Local transfers are usually very fast (often same-day). International SWIFT wires can take 1–3 days. Withdrawals to your personal bank are quick if currencies match (e.g. USD balance to USD bank).
• Integration: Wise offers an API, accounting integrations (like Xero), and payment links. It also supports batch payouts to contractors. However, it lacks a native hosted “checkout” like Stripe/PayPal. Freelancers typically share bank details or Money Request links.
• Ease of Use: The web and mobile apps are intuitive, showing real-time balances in 50+ currencies. Their fee calculator is transparent. Customer support is chat-based, generally rated as good.
• Multi-Currency: Exceptional. Hold and convert between 50+ currencies at interbank rates. You essentially operate like a local bank in many countries.
• Compliance/Taxes: Wise is regulated (e.g. by FCA). It does not issue tax forms like a marketplace; you need to use your account statements for bookkeeping.

Pros: Extremely low fees on currency conversion; zero incoming fees on local payments; true multi-currency flexibility. Cons: Not ideal for accepting credit card payments directly (no checkout); needs clients to do bank transfers (though very low-cost). It’s best when you and your clients can use local transfers.

Payoneer – Marketplace and Global Payroll Favorite

Overview: Payoneer offers international payment services and is popular with freelancers on sites like Upwork, Fiverr, 99designs, etc. It provides “receiving accounts” (virtual bank accounts) in USD, EUR, GBP, and others, so clients can pay you via local ACH/EU transfer like a bank transfer.

• Fees (Clients pay): Clients can pay your Payoneer account via credit card (~3–4% fee), ACH (1%), or even PayPal (in US: 3.99% + $0.49). These fees are typically charged to the payer, but you may see a slightly lower amount.
• Fees (You receive):
  • Local currency deposits: If you receive funds in the currency of your home country (e.g. USD if you’re in the US; GBP if in the UK), it’s free. For example, a UK freelancer with a GBP receiving account pays nothing to get GBP from UK/EU clients.
  • Other currency deposits: If you receive a different currency (e.g. USD into a UK account), Payoneer charges a 1% fee or fixed fee on that receipt. (Some small exceptions apply by country.)
• Payouts to Bank: You can withdraw Payoneer balances to your local bank. For USD/EUR/GBP to a local bank in the same country/currency, Payoneer charges $1.50/€1.50/£1.50 per withdrawal (flat fee), up to $50k total per month. Above $50k monthly, it’s 0.5% of the amount. With currency conversion to withdraw, fees can be up to 3% of the amount.
• Payout Speed: Withdrawals (ACH/wire) to your bank typically take 2–5 business days. Payments to another Payoneer user are instant.
• Integration: Payoneer’s Checkout service lets you add a “Pay with Payoneer” button on websites or invoices. They also have an API and mass-payment tools (often used by companies to pay many freelancers). Many platforms like Upwork, Amazon, and Airbnb pay freelancers directly into their Payoneer accounts (fees are set by the platform).
• Ease of Use: The dashboard is fairly simple. Customer support can be slow (some freelancers report multi-day waits). Multi-currency management is straightforward via the wallet balances.
• Multi-Currency: Supports dozens of currencies. You can hold USD, EUR, GBP, JPY, AUD, and more in your account and exchange between them (small fee).
• Compliance/Taxes: Payoneer won’t issue tax forms like a marketplace. Use statements for tax reporting.

Pros: Free receiving in local currency; integrates with major freelance marketplaces; provides physical/virtual MasterCard (in some countries) for spending your balance. Cons: Credit card deposit fees are moderately high; currency conversion on withdrawal can cost up to 3%; monthly account fees if you earn very little (<$2k/year in some regions); support varies.

Revolut – Digital Banking with Payments

Overview: Revolut is a digital banking app that offers business (and freelancer) accounts with multicurrency balances, cards, and payment links. Freelancers can open a Revolut Pro (free) or a Business account to receive payments and manage expenses. It blends banking with payment acceptance features.

• Fees (UK): As of mid-2024, Revolut migrated old “Freelancer” accounts to Business plans. A free Revolut Pro (personal account with added business tools) lets you create payment links and invoices. Card payment fees start at 1% + £0.20 (for standard online payments). For in-person Tap-to-Pay, about 1.5% per transaction.
• Fees (US): Revolut US offers a free “Freelancer Basic” tier. It includes no free international transfers (each costs $5) and a 0.6% foreign exchange fee. There are also 5 free local (USD) bank transfers/month (then $0.20 each). So a US freelancer on the free plan pays $5 per outgoing USD transfer to non-Revolut banks, and currency conversions cost 0.6%.
• Currency and Conversion: Revolut provides multi-currency IBANs (GBP/EUR/USD etc) and cards. On paid plans (Business Basic or Grow), you get monthly allowances of no-fee currency exchange (e.g. £15k/month with Business Basic, £60k with Scale). After allowances, it charges around 0.2-1% outside market hours. On the free plan, there’s no free allowance (so 0.6% fee applies to all FX).
• Receiving Payments: You can request money via Revolut links or invoices in the app. UK freelancers get GBP account details; EU freelancers can get EUR IBANs; US freelancers get USD account. Payments into these accounts are like any other bank transfer. You can also accept credit cards via Revolut Checkout (not widely used by freelancers) or through its payment links (fees apply as above). Invoice creation is built-in and free.
• Payout Speed: Money sent to your Revolut account is instant (in most cases). Transferring from Revolut to a local bank uses FAST (UK) or ACH (US), usually same-day or next-day.
• Integration: Revolut has APIs and business integrations (e.g. Zapier, Xero). It’s not as ubiquitous as Stripe/PayPal for web checkout, but it’s improving its payment link feature.
• Ease of Use: The mobile app is slick. Customer service is in-app chat. Many users praise the intuitive interface.
• Multi-Currency: Supports 30+ currencies in a single account, easily converted. Great for holding and exchanging funds.
• Compliance/Taxes: Revolut is FCA-regulated (UK) and FDIC-insured (US). It won’t provide tax forms – treat it like a bank. However, invoicing features help keep records.

Pros: Modern app experience; free invoicing and payment links; competitive currency exchange (especially on paid plans); cards for spending balances. Cons: Free plan limits; international transfer fees ($5 in US, £0 in UK beyond plan); the old Freelancer-specific plans are phased out (migrated to paid Business Basic). British freelancers may prefer paid plans to get decent FX allowances.

Deel – Contractor Payroll and Compliance Platform

Overview: Deel is not a generic payment gateway; it’s a global contractor management platform used by companies hiring freelancers worldwide. It handles contracts, local compliance, payments, and tax documents on behalf of businesses. Freelancers typically encounter Deel when a client uses it to manage payments. It’s more a premium solution for enterprise payments than a DIY gateway.

• Fees: Deel charges companies a monthly fee per contractor (about $49/month per contractor for the Contractor plan). Clients cover this cost, not the freelancer. The actual funds you earn are not fee-deducted by Deel on receipt.
• Payments/Currencies: Deel can pay contractors in 150+ currencies. It disburses to local bank accounts or cards in the freelancer’s chosen currency. Exchange rates are generally good.
• Invoicing: Deel automates invoice approvals and contractor billing. Freelancers still submit their hours/fees via Deel, and Deel handles invoicing to the client.
• Tax/Compliance: Big advantage – Deel manages compliance paperwork and tax forms. For US freelancers, Deel will issue a 1099-NEC for you if you earned over $600 in the year (since clients use Deel instead of paying you directly). It also does tax withholding if needed (e.g. VAT in EU).
• Payout Speed: Once the company approves a payment run, Deel pays freelancers on its schedule (usually weekly or monthly). Payouts to bank accounts take 1–2 business days after the transfer is initiated.
• Support: Deel offers dedicated support to contractors (through the platform). It’s designed to minimize payment issues.
• When to Use: Freelancers don’t sign up for Deel themselves; rather, if your client uses Deel, it can simplify getting paid globally. Otherwise, for independent freelancing, Deel is overkill (and costly) if you don’t have a single client covering it.

Pros: Excellent for hassle-free international contracting (full compliance, good rates, minimal payment friction). Cons: Expensive and geared to B2B; not a standalone checkout. Freelancers can’t open a Deel account unless contracted by a company that uses it.

Other Payment Solutions and Invoicing Tools

While the above cover the major players, other options may suit specific needs:

• Square (US only): Offers online invoicing and card readers. Card fees are ~2.6% + 10¢ (online). Good for in-person or simple online shops, but less common for remote freelancing.
• QuickBooks/Intuit Payments: Built into QuickBooks accounting. In the US, keyed-in card payments are 3.4% or more; swiped is ~2.6%. Useful if you already use QuickBooks.
• Freelance Marketplace Withdrawals: If you work on Upwork, Fiverr, Guru, etc., they have their own fees and withdraw options (often via Payoneer, bank, or PayPal). These typically charge 5–20% platform fee plus payment processing fees.
• Cryptocurrency: Some freelancers accept crypto (e.g. Bitcoin) for international clients, avoiding banking fees. However, crypto has volatility and tax complexity, so it’s niche.

Many freelancers also use invoicing software (FreshBooks, Zoho Invoice, Xero, etc.) that integrate with the above payment gateways (e.g. embedding Stripe/PayPal payment buttons on invoices). These tools streamline billing but ultimately rely on the payment processor’s fees and rules.

Detailed Comparison Table

Feature	PayPal (US/UK)	Stripe (US/UK)	Wise	Payoneer	Revolut (Pro)	Deel
Domestic Fee	US: 2.99%+$0.49UK: 2.9%+£0.30	US: 2.9%+$0.30UK: ~1.5%+£0.20 (domestic)	None to receive (hold local); 0.45–1% to convert	Free for local currency(else ~1%)	~1% + £0.20 per card tx	N/A (used by clients)
Intl Fee	+1.50% (US), +1.29–1.99% (UK)	+1.5% intl card +1% FX (US); UK ~3.9%+£0.20	Free incoming; conversion fees 0.5–1%	Up to 1% or fixed fee on foreign currency receipts	n/a (supports global via FX)	N/A
Currency Spread	~3–4% markup	~0–1% (stated fee covers it)	~0% (uses mid-market + small fee)	Withdrawals: up to 3% FX	0.6% on free plan; <0.2% on paid	Uses real rates (enterprise-grade)
Integration / API	Excellent: Checkout buttons, Invoicing, SDKs	Excellent: APIs, Checkout, Invoicing, Payment Links	API & Xero integration, no native checkout	API available; Payoneer Checkout plugin	Payment links, QR, API, invoicing	API for enterprise clients
Payout Speed	Instant in PayPal; bank transfer 1–3 days	Initial hold 7–14d, then 2-day US, 7-day UK	Local transfers: same/next day; SWIFT 1–3 days	1–5 days to bank; instant between Payoneer accounts	Instant to Revolut; bank transfer next day	Depends on client’s run (usually 1–2 days)
Multi-Currency	Multiple balances; conversion available	Charge in 135+ currencies; deposit in a few base currencies	Hold 50+ currencies free	USD, EUR, GBP, JPY, CAD, others (via accounts)	~30+ currencies; GBP, EUR, USD accounts	Pays in 150+ currencies
Mobile App / Usability	Very user-friendly; widely known	Clean dashboard; robust analytics	Clean app; realtime balances	Simple interface; less modern than fintech rivals	Slick modern app; budgeting tools	N/A (contractor portal)
Customer Support	Online help, email; mixed reviews	Docs and chat; generally good	Chat support; good FAQ	Email/ticket; slow response sometimes	In-app chat; community help	Dedicated support (for paid clients)
Tax Documents	1099-K in US (>$600); UK no form	1099-K in US; UK no form	No tax forms (self-report)	No tax forms; use statements	No tax forms; statements only	Provides invoices and tax docs to clients
Compliance	Fully regulated globally	PCI/DSS level 1, regulated	FCA-regulated; safe vault	Regulated fintech	FCA, FDIC regulated	Handles compliance (EOR/payroll)

(Sources: PayPal US/UK fee schedules; Stripe fees; Wise and Revolut sites; Payoneer pricing pages; Deel pricing page.)

Pros and Cons by Scenario

• US Freelancers:
  • PayPal/Stripe: Very familiar and easy for US clients. IRS Form 1099-K helps with taxes. However, PayPal’s currency markup and Stripe’s delayed payouts can be downsides.
  • Wise: Excellent for freelancing in USD/EUR/GBP – hold multiple balances free. A US client can ACH USD to you with no fee, but if your client only has a credit card, Wise isn’t a plug-and-play checkout.
  • Payoneer: Good if you work on Upwork/Fiverr (they pay direct). Also useful to receive USD from international clients via a virtual USD account.
  • Revolut (US): Available but limited. The free plan has high int’l transfer costs ($5 each), so not ideal unless you upgrade to a paid plan.
  • Deel: Only if a US company hires you through Deel. The upside is Deel will issue 1099-NEC for you; otherwise, standard platforms (PayPal/Stripe) suffice.
• UK Freelancers:
  • PayPal: Popular with EU clients, but Brexit means GBP/EUR transfers are now “international” with higher fees (1.99% surcharge). Still convenient for clients with PayPal accounts.
  • Stripe: Very cost-effective for UK-based card payments (1.5%+£0.20). Also supports SEPA bank payments, direct debit, etc. Payouts can be slower (weekly) but fees are low on local currency.
  • Wise: A top choice for Euro/GBP/USD transfers. UK freelancers can get EUR and USD accounts and avoid exchange fees (much lower cost than banks). Use it with invoicing for “international payments.”
  • Payoneer: Use if working on international marketplaces. Also UK account holders get a GBP receiving account (free to receive GBP).
  • Revolut (UK): Strong option. Even the free Revolut Pro offers online payment links at ~1% fee. Paid plans provide hefty no-fee FX allowances, beating most banks. Automatic invoices and fast transfers (especially within Europe) are perks.
  • Deel: Few UK clients use it yet; more common with large tech employers. If your client does, it simplifies VAT/local withholding issues.

Key Takeaways for Freelancers

• For Low Fees on International Payments: Wise is hard to beat. Its mid-market rates and free local accounts mean you pay only ~0.5–1% to convert.
• For Easy Website/Invoice Payments: Stripe and PayPal integrate everywhere. Stripe is usually cheaper for card payments (especially in UK) and has modern developer tools. PayPal is familiar to clients but pricier on conversions.
• For Marketplace Earnings: Payoneer often ties into major freelancing platforms. It allows local withdrawals in USD/EUR/GBP and charges only ~1% on cross-border receipts.
• For Multi-Currency Banking: Revolut and Wise give you full-fledged bank accounts. They’re excellent for holding/using different currencies, automating billing, and linking to expense tracking. Revolut Pro adds free invoicing.
• Support & Compliance: All platforms require ID verification (KYC) and provide transaction logs. US freelancers should note that PayPal and Stripe issue 1099-Ks once you hit $600 in payments. UK freelancers rely on self-assessment, so download statements from any platform you use. Deel (when available) handles tax docs for you, which is unique.

Conclusion

Choosing a “freelance payment processor” depends on your clients and priorities. If you bill mostly in one currency (e.g. USD in US), Stripe or PayPal may be simplest. If you have many international clients, a multi-currency account like Wise or Revolut can save big on fees. Often freelancers use multiple platforms: for example, Stripe for card payments on their website, Payoneer for platform payouts, and Wise to hold and convert funds cheaply.

By weighing fees, speed, and convenience (and by reading the fine print above), you can assemble the best mix of payment gateways for your freelance business. The right choice will let you focus on client work – not on losing money to payment fees.

Sources: Official fee and pricing pages for PayPal, Stripe, Wise, Payoneer, Revolut, and Deel.