How to Pay International Contractors Without Losing Money to Wire Fees

If you're running a small business with international contractors, you know the pain: Every payroll cycle means watching hundreds of dollars disappear into wire transfer fees, currency conversion markups, and intermediary bank charges.

A single wire transfer to the Philippines? $40 fee + 3% forex markup. Multiply that by 5 contractors every two weeks, and you're burning $4,800 per year just on fees—money that could go to hiring another contractor or growing your business.

There's a better way: stablecoin payments on the XRP Ledger. Same-day settlement. Fractions of a penny in fees. Zero hidden markups. And it's simpler than you think.

Here's everything you need to know.

The Hidden Cost of International Wire Transfers

When you send an international wire, the fees stack up fast:

Fee Type	Typical Cost	Who Charges It
Sending bank fee	$25-50	Your bank (per wire)
Intermediary bank fee	$10-20	Correspondent banks (often hidden)
Receiving bank fee	$10-25	Contractor's bank
Currency conversion markup	1-3%	All banks involved
Settlement time	3-7 days	International banking system

Real-world example: You send $2,000 to a contractor in India.

• Your bank: $40 wire fee
• Intermediary bank: $15 (deducted from the transfer)
• Contractor's bank: ₹1,500 (~$18) incoming wire fee
• Currency conversion markup: 2.5% on $2,000 = $50
• Total cost: $123 (6.15% of the payment)
• Contractor receives: ~$1,877
• Time to settlement: 5 business days

You paid $2,000. Your contractor received $1,877. $123 disappeared into the banking system. And they waited a week to access it.

For a small business paying 5 contractors twice a month, that's $12,300 per year in fees alone.

Alternative Methods (and Why They're Not Much Better)

PayPal / Venmo International

• Fee: 5% + $0.99 per transaction
• Sending $2,000: $100.99 fee
• Settlement: 1-3 business days
• Availability: Limited in many countries

PayPal is convenient for small amounts but becomes prohibitively expensive at scale. 5% of a $2,000 payment is $100—every single time.

Wise (formerly TransferWise)

• Fee: 0.5-2% + $0.50-3 per transfer
• Sending $2,000: ~$15-40 fee (depending on currency)
• Settlement: 1-3 business days
• Pros: Much cheaper than banks, transparent pricing
• Cons: Still 1-2% in fees, slower than crypto

Wise is a solid improvement over traditional wires, but you're still paying 1-2% per transfer. For businesses with large payroll volume, that adds up.

Deel / Remote / Ontop

• Cost: $49-299 per contractor per month
• 5 contractors: $245-1,495/month ($2,940-17,940/year)
• Pros: Full compliance, local payroll, benefits management
• Cons: Designed for enterprises, expensive for small teams

These platforms are great if you need full employer-of-record services. But if you just need to pay contractors—not manage HR, benefits, and compliance—you're paying for features you don't use.

How Stablecoin Payments Work (and Why They're Different)

Stablecoins are cryptocurrencies pegged 1:1 to the U.S. dollar. The most popular are:

• RLUSD — Ripple's stablecoin, native to the XRP Ledger
• USDC — Circle's USD Coin (available on XRPL)
• USDT — Tether (most widely used globally)

When you pay contractors using stablecoins on the XRP Ledger (XRPL), you're bypassing the traditional banking system entirely. Here's how it works:

1. You load stablecoins into your XRPL wallet (buy USDC/RLUSD on Coinbase, Kraken, or Uphold)
2. You send payment directly to your contractor's XRPL wallet address
3. Transaction settles in 3-5 seconds (not days)
4. Contractor receives full amount (minus $0.0002 network fee)
5. They convert to local currency on a local exchange or keep as USD

No banks. No intermediaries. No hidden fees.

Real Cost Comparison: Wire vs. Stablecoin

Let's compare the actual costs of paying 5 international contractors $2,000 each, twice per month:

Method	Per Payment	Monthly (10 payments)	Annual
Wire Transfer	$40-123	$400-1,230	$4,800-14,760
PayPal	$100.99	$1,009.90	$12,118.80
Wise	$15-40	$150-400	$1,800-4,800
Deel (min)	$49/contractor/mo	$245	$2,940
Stablecoin (XRPL)	$0.0002	$0.002 + $49 platform	$588

Annual savings vs. wire transfers: $4,212-14,172
Annual savings vs. Wise: $1,212-4,212
Annual savings vs. Deel: $2,352

And that doesn't account for the time saved. Stablecoin payments settle in seconds, not days. Your contractors can cash out same-day instead of waiting a week.

Step-by-Step: How to Pay International Contractors with Stablecoins

Phase 1: Setup (One-Time, 15-30 Minutes)

Phase 2: Sending Payments (5 Minutes Per Pay Cycle)

Phase 3: Contractors Cash Out (Their Side)

Once contractors receive stablecoins, they have several options:

1. Hold as USD: Stablecoins = digital dollars. Some contractors prefer holding USDC to avoid local currency volatility
2. Convert to local currency: Use a local exchange (varies by country):
   • Philippines: Coins.ph, PDAX
   • India: WazirX, CoinDCX
   • Latin America: Bitso, Mercado Bitcoin
   • Europe: Kraken, Bitstamp
   • Africa: Luno, Yellow Card
3. Withdraw to bank: Most exchanges offer bank withdrawals in local currency (1-2 days)
4. Spend directly: Some countries have crypto debit cards (e.g., Coinbase Card) for direct spending

Typical timeline: Contractor receives USDC at 2:00 PM → converts to PHP on local exchange by 2:30 PM → withdraws to bank account → funds arrive next business day.

Compare that to waiting 5-7 days for a wire transfer.

Common Questions from Small Business Owners

"My contractors don't know anything about crypto!"

Neither do most contractors—at first. But modern wallet apps are as easy as Venmo. Xaman (formerly Xumm) is specifically designed for non-technical users:

• Download app (iOS/Android)
• Create account (email + password)
• Back up recovery phrase (24 words—write them down)
• Copy wallet address
• Done

PayDLT's contractor portal includes video tutorials in multiple languages. Most contractors complete onboarding in under 10 minutes.

Contractor incentive: They receive payments instantly, keep more money (no $18 receiving bank fees), and can convert to local currency at competitive rates. Once they experience the speed and savings, they'll never want to go back to wires.

"What if the contractor is in a country where crypto is restricted?"

As of 2026, most countries allow crypto receipt even if they restrict trading. However, you should verify local regulations. Countries with broad crypto bans (e.g., China, Algeria, Bangladesh) may pose challenges.

For contractors in restricted regions, Wise or Deel may still be better options. But for the 95% of countries where crypto is legal, stablecoin payments are vastly cheaper.

"Is there exchange rate risk?"

No. Stablecoins are pegged 1:1 to USD. 1 USDC = $1.00 always. When contractors convert USDC to their local currency, they face the same exchange rate risk they'd face with a wire transfer—but without the 2-3% bank markup.

In fact, contractors often get better exchange rates on crypto exchanges than banks offer.

"What about taxes?"

Stablecoin payments are treated as regular income. You follow the same tax rules as any contractor payment:

• US contractors: Issue 1099-NEC if they received $600+ in a year
• International contractors: Collect Form W-8BEN (certifies foreign status)
• Your business: Deduct contractor payments as a business expense

PayDLT automates all of this. See our complete tax guide for details.

"What if something goes wrong?"

Blockchain transactions are irreversible, so it's critical to verify wallet addresses before sending. PayDLT includes address verification:

• Contractors enter their wallet address during onboarding
• PayDLT sends a test transaction ($0.01) to verify the address works
• Contractor confirms receipt
• Address is saved for all future payments

Once verified, the risk of error is essentially zero. And because every transaction is recorded on the blockchain, there's no "lost payment" scenario like with wire transfers.

Real-World Success Story: Global Design Agency

Company: PixelCraft Design (12-person agency, 8 international contractors)
Locations: US (owner), Philippines (3), India (2), Colombia (1), Poland (1), Kenya (1)

Before stablecoin payroll:

• Method: Bank wire transfers
• Cost per payment: $35-65 (depending on destination)
• Total monthly cost: $400-520 (8 contractors × 2 pay periods)
• Annual cost: $4,800-6,240
• Time per pay cycle: 2 hours (filling out wire forms, tracking payments)
• Contractor complaints: "Why did I only receive $1,870 when you sent $2,000?" (hidden bank fees)

After switching to PayDLT:

• Platform cost: $49/month (Pro plan)
• Transaction fees: $0.0016/month (8 × 2 × $0.0001)
• Total monthly cost: $49
• Annual cost: $588
• Time per pay cycle: 5 minutes (batch payment in one click)
• Contractor feedback: "I get paid Friday afternoon, cash out Saturday morning. This is amazing."

Results:

• Annual savings: $4,212-5,652
• Time savings: 62 hours per year
• Used savings to hire an additional part-time designer
• Contractor retention improved (faster, transparent payments = happier team)

When Stablecoin Payroll Makes Sense (and When It Doesn't)

✅ Stablecoin payroll is great if:

• You pay contractors (not employees requiring withholding)
• Contractors are in countries with active crypto ecosystems (most of the world)
• You pay regularly (weekly, bi-weekly, monthly)
• You want to minimize fees and maximize speed
• Contractors are comfortable with basic tech (can download an app)

❌ Stick with traditional methods if:

• You're paying employees (not contractors) and need withholding
• Contractors are in countries with crypto bans (China, Algeria, etc.)
• You need full employer-of-record services (benefits, compliance, local payroll tax)
• Contractors are unwilling or unable to use crypto (though most come around quickly when they see the benefits)

The Bottom Line

International wire transfers are a relic of a pre-internet banking system. They're slow, expensive, and opaque. In 2026, there's simply no reason to keep paying $25-50 per transfer when you can send the same payment for $0.0002.

Stablecoin payroll on the XRPL isn't experimental or risky—it's proven technology that's been operating for over a decade. It's cheaper, faster, and more transparent than any traditional method.

For small businesses with global teams, switching to stablecoin payroll isn't a "nice-to-have." It's a competitive advantage. Your savings can fund growth. Your faster payments improve contractor retention. And your time savings let you focus on building your business instead of fighting with wire transfer forms.

The question isn't whether to switch. It's how soon can you start.

---

Want to learn more? Check out our guides on why small businesses are switching to stablecoin payroll and stablecoin payroll tax compliance.