If you want to make international payments in foreign currency then you should research the market carefully. Banks are notorious for lack of support, high fees, intermediate banking which makes payments slower and more expensive, and sub-par exchange rates. On the other hand, there are specialist providers – many of which have been operating for 20 years and process billions each year – that can simplify the process, make it faster, more efficient, and less expensive. The best provider will allow regular transfers, future transfers, hedging for future transfers (fixing the exchange rate), rate alerts (to transfer when a certain rate has hit), and provide genuinely good guidance tailored to your situation.
Best International FX Payment Providers
We have been covering the foreign exchange industry since 2014. These are our choices.
Xe: The Biggest Name in Currency Since 1993- Fast and Effective Sign Up Process
- Superb Functionality All Around - Intuitive Online Platform, Smooth App, and Personalised Touch with Dedicated Dealers Above $50,000 Volume
- Global Company with Strong Presence in the UK
Key Currency: The Best Botique Business FX- Fastest Growing UK Currency Transfer Provider
- Friendly and Bespoke Currency Guidance
- Extensive Hedging and FX Risk Management Options
Moneycorp: Business FX and Hedging Specialists (Best for Corporate Customers)- Operating Since 1979 - First Commercial FX Firm
- Widest Selection of FX Hedging Tools
- FX Forwards Up to 24 Months
TorFX: Friendly, Experienced Team with Business Expertise- Personal, Friendly Service
- High TrustPilot Rating
- Regular Market Updates
OFX: Best Multi-Currency Account for Businesses- Traded Publicly on the Australian Stock Exchange
- Superb Multi-Currency Account Offering
- Spotless Reputation for 20 Years
CurrencyFair: Innovative Online Currency Exchange Platform- User-friendly Online Platform with Advanced Technology
- Innovative Peer-to-Peer Exchange System
- Transparent Fee Structure with Competitive Rates
Media Mentions
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What Are International Payments?
The Difference Between International and Domestic Payments
A domestic wire transfer is straightforward—you simply instruct your bank to transfer money between accounts in the same country, usually with minimal fees and complications.
International payments, however—especially those involving currency exchange—can be:
- ✓ Error prone
- ✓ Stressful
- ✓ Expensive
Many people assume that avoiding banks for international transfers would be difficult. In reality, it’s quite simple and often more beneficial.
Three Main Methods of Making International FX Payments
1. Banks
Pros: Easy to use (you already have an account)
Cons: Expensive and often not particularly user-friendly
2. Online Payment Methods
Pros: Convenient digital interfaces
Cons: Requires new account registration, can be expensive, and typically offers limited support
3. FX Payment Specialists
Pros: Superior service and lower costs
Cons: Requires new account registration
What Do FX Payment Specialists Offer?
- ✓ Better exchange rates for both incoming and outgoing payments
- ✓ Sending FX payments (B2B, B2C, or C2C) to international bank accounts
- ✓ Making payments for overseas products as a customer
- ✓ Receiving international payments in multiple currencies
- ✓ Currency exchange between your own accounts
- ✓ International payroll payment services
- ✓ Rate alerts to catch real-time currency changes
- ✓ Real-time support from multilingual customer service teams or dedicated currency dealers for large transfers
Multi-Currency Banking Solutions Worldwide
These banking solutions enable clients to manage multiple currencies efficiently with local account details, international debit cards, and specialized support. Perfect for businesses, digital nomads, and international professionals.
Payoneer: Global Payment Solution
Payoneer offers tier-1 named bank accounts across the world in multiple currencies, alongside multi-currency debit cards and advanced functions.
- Local receiving accounts in multiple currencies
- Accepted by major marketplaces and platforms
- Mastercard debit card with global acceptance
- Tier-1 banking partners for enhanced security
Wittix: Sleek Multi-Currency Neobank
A modern neobank offering multi-currency IBANs and a sleek interface. Wittix serves both individuals and businesses seeking convenient and smooth internatoinal banking.
- Individual and corporate accounts
- Contactless Mastercard accepted worldwide
- Low forex fees and fast transfers
- User-friendly mobile app for account management
HSBC Expat: For High-Net-Worth Clients
HSBC Expat provides premium banking services for affluent individuals worldwide (min 20,000 deposit). With global presence and reputation, they offer comprehensive solutions..
- Multi-currency accounts and services for expatriates
- Premium wealth management and investment options
- Global account coordination across HSBC network
- Dedicated relationship managers
Comparing Different International Payment Providers
Each type of provider has its own strengths and weaknesses:
| Banks | Currency Brokerages | Digital Providers | |
|---|---|---|---|
| Price | Expensive for both low and high value transfers. High spreads and high payment fees. | Normally always cheaper than banks & PayPal. Usually cheaper than other online payment providers for larger transfers. | Prices can vary hugely. PayPal is very expensive but Wise is one of the cheapest international payment providers on the market. |
| Service | Arrange spot payments online, over the phone or in a branch. Pay more for payments made in branch and over the phone. |
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| Examples | Barclays, HSBC, Citi Bank | Currencies Direct, TorFX, Moneycorp | Wise, Currencyfair, Paypal, Skrill |
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While banks are clearly different from other providers, there’s significant overlap between brokerage firms and online payment specialists. Leading FX brokerages often offer advanced online platforms while giving clients the option to deal over the phone or online.
For example, Moneycorp is known for its excellent online platform where clients can set up new beneficiaries, make quick repayments, process bulk payments, integrate with accounting software, and use hedging tools like forward contracts.
Another well-known solution is Amex International FX Payments, which has become synonymous with international transfers due to American Express’s global position—an organization with over 75,000 employees and $24.5bn in equity.
What Makes International Payments Cheap or Expensive?
To understand what creates cost differences in international payments, we need to recognize how banks and transfer companies generate revenue. Most of their profit comes from the spread—the difference between the actual exchange rate and the rate they offer customers. Payment providers all apply spreads, but non-bank specialists typically use much smaller margins than banks.
So What’s the Cheapest Way to Send International Payments?
The most economical option depends on several factors:
- ✓ The size of your transfer
- ✓ The currencies involved (exotic currencies typically cost more)
- ✓ Your timeframe
- ✓ The type of FX solution you need
As a general rule, avoiding banks is your best bet for affordable international payments. Online-focused companies like Wise often provide some of the cheapest options, especially for smaller transfers, with transparent fees and fixed exchange rate margins.
How to Initiate a Transfer with a Non-Bank Provider
Choose Your Provider
Decide whether to use a bank or specialist. If using your bank, you can likely proceed directly through their system. For a specialized provider, you’ll need to register first.
Complete Registration
Financial firms must follow Know Your Customer (KYC) regulations, particularly for international transfers. New clients must verify their identity before making payments, which can usually be done online by submitting ID copies and address verification. Some services may require a selfie as well.
Select the Right FX Solution
Research the different options available and choose what fits your needs. While individuals often make payments at the spot rate (today’s exchange rate), specialists offer additional solutions:
- Forward contracts – lock today’s rate for future payments
- Market orders – trade when rates reach specified levels
- Swaps – buy currency today and sell the same amount in the future
Book Your Trade
Execute your transaction online or by phone. Select the currencies involved and input the beneficiary details (typically requiring an IBAN for international payments). Review and accept the exchange rate to proceed.
Settle and Monitor
Pay for your transfer via your account balance (if using a multi-currency account), debit card, or bank transfer. Track your payment online or through your account manager. Most international payments complete within one business day.
Alternative Payment Methods
PayPal for International Payments?
If both the sender and recipient have PayPal accounts, transfers can be extremely quick since they occur within PayPal’s system. However, costs are high—a minimum 4% FX spread, with total fees potentially reaching 8% in some cases.
PayPal doesn’t allow direct transfers to external bank accounts, though its subsidiary Xoom does (but at rates 2-3 times higher than Wise).
Zelle or Venmo?
Despite their popularity for domestic transfers, Zelle and Venmo don’t support international payments.
International Payments via Cryptocurrency
Cryptocurrencies can facilitate much faster international transfers than traditional banking networks, particularly for countries with unreliable banking systems.
For example, payments through the XRP Ledger settle in 4 seconds regardless of distance, while SWIFT transfers from the UK to Australia take about 2 days.
The main drawbacks are volatility and conversion costs. Recent collapses in the cryptocurrency sector have increased skepticism about crypto’s viability as a reliable payment method.
Specialized Payment Solutions
Payoneer for Receiving Payments
Unlike most services that focus on sending money, Payoneer specializes in making it easier to receive international payments. Users get local account details in multiple currencies, allowing clients to pay as if they were sending to a local account.
Features include:
- SWIFT transfer capability
- Payment links for credit/debit card transfers
- ACH bank debit processing (US accounts)
- Integration with freelance platforms like Fiverr and Upwork
Payoneer’s main drawbacks include customer support limitations and slightly higher fees.
Flywire for International Invoicing
Flywire offers international invoicing tools for C2B payments, filling a gap in services provided by other FX specialists.
Payer (payer.eu) provides a similar “order to cash” service for international payables.
How to Receive International Payments
1. Let the Sender Handle Everything
You can invoice in your domestic currency and let the customer handle the conversion and fees. This might result in receiving slightly less than invoiced after intermediary bank fees, and could deter customers if they find the process too cumbersome.
2. Accept Foreign Currencies to Your Domestic Account
This is the least desirable option—when a foreign currency tries to credit your domestic account, your bank typically applies a steep 7-8% margin for conversion, plus you’ll face long delays until you agree to these expensive terms.
3. Use Multi-Currency Accounts
Fintech solutions now rival or exceed what global banks offer, allowing you to open accounts in multiple currencies without needing overseas addresses or going through multiple KYC processes.
Wise offers excellent multi-currency accounts for individuals, while WorldFirst provides strong solutions for businesses.
4. Partner with a Specialized Payment Company
Rather than opening your own multi-currency accounts, you can use an international payment specialist’s account details on your invoices. They handle the currency exchange and forward the money to your personal account.
Note that some institutions will only pay into accounts in your name. Your payment partner may need to prove they’re forwarding the funds to you.
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