TransferWise is an online app that allows users to collect payments in a variety of currencies. This is particularly helpful for freelancers who work with international clients that pay in a currency different than your own. But how does TransferWise for freelancers work, and should you consider using if for your practice? Let’s find out!
What is TransferWise?
TransferWise is a financial app that allows users to accept multiple currencies by providing bank accounts that handle those currencies. TransferWise account holders can open bank accounts in different currencies so they can accept payments in those currencies.
Essentially this means that if you’re a freelancer working in the US—or working anywhere in the world but use USD as your main currency, and you have international clients that pay in different currencies, you can accept payment in those currencies without having to sacrifice the value by using automatic conversions by your home bank or even payment platforms like PayPal.
TransferWise was designed by the same people that created Skype and was created to make collecting money across borders easier. This means that it might be just the tool you’re looking for in your freelance practice!
What Are the Benefits of Using TransferWise for Freelancers?
The biggest benefit of TransferWise for freelancers is that it allows you to accept multiple currencies. I don’t know about you, but the majority of my clients pay in a different currency than me and I end up losing out on money with automatic conversions provided through both my bank and PayPal.
But that’s not the only benefit of using TransferWise for Freelancers. It also has the following benefits:
You can use it anywhere. Seriously, it doesn’t 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.
That means up here in cold, blustery Canada, I can hold bank accounts in USD, EUR, USD, GBP, AUD and NZD—so my clients can pay mee in those currencies. No money lost!
TransferWise is cheap. As a freelancer, I’m always looking for great, reliable services that I can use for my business that won’t cost me 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.
TransferWise is free to sign up for, and there are no fees to invoice and collect money from clients. When it comes to withdrawing your funds into another business account in the same currency, there is a small fee. And there is also a fee for currency conversion.
TransferWise assures clients that their fees are “the lowest we can charge to cover costs” for the service. And they’ve further said their goal is to reduce fees over time.
You can see their rates on the TransferWise website.
It’s easy to use. You don’t have to be a tech genius to use TransferWies and it can integrate into your accounting software if you use Xero. That means less switching back-and-forth between programs.
As a Freelancer Should You Use TransferWise?
I love the idea of TransferWise and I love the cost, but I’m a tad bit hesitant to use it. I already have Stripe and PayPal, and my accounting/billing software is Bonsai, not Xero, so in all honesty, I haven’t yet set up a TransferWise account.
That said, as a freelancer who works with clients internationally, I genuinely think TransferWise might be a great idea and I am seriously considering adding it to my roster as almost none of my clients pay in CAD, but that’s what I use in my day-to-day.
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