How do the different methods to pay employees compare?

TL;DR:

Compare employee payment methods based on cost, convenience, and country coverage. Wise (formerly TransferWise) offers the lowest fees; Payoneer and PayPal offer more automation and broader country support.

Comparing Employee Payment Methods

When managing a global workforce, choosing the right method to pay employees is crucial. Each option varies in terms of cost, convenience, automation, and geographic availability.

Wise (formerly TransferWise)

Wise supports local bank transfers in over 40 countries including the U.S., U.K., Australia, Canada, India, the Philippines, and many in Western Europe.

Convenience: Not automated
Approximate Cost: 1% (includes currency conversion)
Payout Method: Bank account transfer

Notes:

To minimize fees, use a local transfer method (e.g., ACH in the U.S.). ACH setup may require activation—contact your bank to enable it. In countries like the U.K., Australia, and most of Europe, local transfer methods are already standard.

Payoneer

Payoneer is available in nearly all countries and is well-suited for businesses with larger payrolls.

Convenience: Suitable for bulk payments
Approximate Cost: 3%
Payout Methods: Bank account or Payoneer debit card

Notes:

Requires a minimum of $10,000 in transfers per month and at least 10 payees.

PayPal

PayPal is widely used and very user-friendly.

Convenience: Highly automated
Approximate Cost: 2.5% to 6.5% (varies by method)
Payout Method: Bank account

Fees depend on the type of payment:

Mass Payment: ~4.5%
Send to Family: ~2.5% hidden currency exchange fee
Standard Send: ~6.5

Disclaimer: These figures are based on sending $1,000 from the U.S. to the Philippines and will vary by destination.

Payment Method Table

Payment Method	TransferWise	Payoneer	PayPal
What countries can you send money to?	Western Europe, the UK, India, the Philippines, the USA, the UAE, Australia, Bulgaria, Brazil, Canada, Switzerland, Chile, the Czech Republic, Denmark, Georgia, Hong Kong, Hungary, Indonesia, Morocco, Malaysia, Nigeria, Norway, New Zealand, Pakistan, Poland, Romania, Sweden, Singapore, Thailand, Turkey, Ukraine	Almost all countries	Almost all countries
Is it convenient to send to multiple employees?	No	Yes	Yes
Approximate Percentage Cost (Including Hidden Fees)	1%	3%	2.5% - 6.5%
How can recipients receive their money?	Bank account	Bank account or debit card	Bank account
Notes		Payoneer has minimum account requirements. Suitable for larger businesses.	The fees depend if you use mass payment (4.5% total fees), "send to a family member" (2.5% hidden currency exchange fee), or the standard send method (6.5% total fees)

How Time Doctor Pays Employees

Time Doctor uses both Wise and Payoneer:

Wise: Preferred for low-cost, transparent transfers
Payoneer: Used for its wide availability and ATM withdrawal option (useful in countries like Ukraine and Russia)

Currency Exchange Fees

Most payment platforms apply hidden currency conversion fees by using non-market exchange rates. Wise is among the few that does not include hidden fees.

Learn more about these hidden fees in this article.

Automated Payment Integrations

PayPal and Payoneer both integrate with Time Doctor.

Approve payroll within Time Doctor.
Export the generated .CSV file.
Upload the file to PayPal or Payoneer for processing.

Why Time Doctor Doesn't Offer Fully Automated Payments

Some platforms (e.g., Upwork) automate payments via credit card charges. Time Doctor avoids this for two reasons:

Cost Control: Automated payments would incur additional fees, including credit card charges.
Accuracy: Manual approval ensures the correct payment amount is sent.

Payment Methods for U.S. Workers

For domestic contractor payments in the U.S., consider:

ACH Transfers (through your bank)
PayPal Mass Payments – Fixed $1 per payment

Should there be any inconsistencies or concerns regarding the article, contact support@timedoctor.com for prompt assistance.