Low conversion rate.
It sucks, right?
These are just some of the common feedback with regard to freelancing payment gateway.
And I get it.
As freelancers, we’re responsible for making sure we get the money that we’re owed. After working hard to finish a project, we deserve to reap the fruits of our labor.
Now, I won’t go into the nitty-gritty details of getting paid since we’ve already discussed it in one of our previous blogs. I’d like to focus on a rising trend.
The shift to TransferWise.
(*TransferWise is now known as Wise. But for the sake of this blog, I’m gonna be using the former since it’s what we’re familiar with.)
So let’s get the ball rolling, shall we?
What is TransferWise?
Just a quickie about TransferWise.
It is a financial app which enables users to accept multiple currencies by providing bank accounts that handle those currencies. It aims to provide you with honest, fair, and efficient wire transfer services.
The people behind Skype were the ones who designed it to make collecting money across borders easier. It might just be the tool you’re looking for in your freelance practice.
If you’re wondering what exactly makes it so great for freelancers and digital nomads…
TransferWise vs. Other Money Transfer Services
Here’s what TransferWise users have to say about it...
“The money arrives in my bank account directly, without going somewhere else to be converted. The money arrives fast with no hassle.”
“I’m keeping so much more of my earnings now that I’m not paying huge bank fees and commissions.”
“It’s my best financial buddy that always has the right rate (and the right currency).”
The bottom line?
This platform enables freelancers to send, receive, and spend money in more than 40 currencies.
By providing bank details in up to 70 countries, it makes international invoices totally uncomplicated.
On top of that, it uses the actual market conversion rate. I’m not sure if other currency converting services do this.
However, it charges a small sending fee -- which pops up transparently.
And this is just the tip of the iceberg.
There are other benefits for using this platform. I’ll use the acronym A.C.E.
What is it you ask?
Use Anywhere. No matter where you’re located, TransferWise allows you to open a bank account in a currency other than your own even if you’re not in that country.
It’s Cheap. I don’t know about you but I’m always on the lookout for great, reliable services that don’t cost an arm or a leg. So if you’re thinking of using TransferWise for your freelance practice, you’ll be glad to know it’s relatively cheap.
You don’t need to shell out money to sign up. No monthly costs either.
You only need a small fee when withdrawing your funds into another business account in the same currency. Another fee for currency conversion.
Easy to use. No need to panic if you’re not a tech genius. You don’t have to be one to use TransferWise. You can even integrate it into your accounting software if you use Xero. That means less switching back-and-forth between programs.
Whew! There you go.
I just laid out the advantages of using TransferWise. And they’re probably what’s driving freelancers to shift to this payment platform.
Of course, you can do your own research and find what’s best for you.
There’s likely to be even more options in the future. After all, freelancing is here to stay.
If you haven’t started yet as a freelancer, it’s alright. Our free courses here might help you out.