Paying remote workers in Latin America is one of the most practical parts of the hiring process — and also one of the most frequently overthought. The options are well-established, most LATAM professionals have experience with all of them, and the main decision is simply which platform best fits your payment volume, frequency, and cost tolerance. This guide breaks down the four most commonly used tools and when to use each.
Before you pick a platform: three principles
Most LATAM professionals strongly prefer USD payments. It protects their purchasing power from local inflation and devaluation — especially in markets like Argentina. USD payments also simplify your accounting.
Different professionals have different banking setups. Wise is popular for low fees. Payoneer is common for freelancers. Some prefer direct wire. Ask during onboarding — do not assume.
Agree on weekly, bi-weekly, or monthly payment at the offer stage. Different platforms have different transfer timelines — build in a buffer and communicate clearly when funds will arrive.
Questions about paying your first LATAM hire?
HireLATAM advises on payment setup as part of every onboarding. We make sure the first payment goes smoothly.
Wise (formerly TransferWise)
Wise is the most recommended platform for paying LATAM contractors, particularly for U.S. companies making their first international hire. Its combination of transparent fees, real mid-market exchange rates, and straightforward setup makes it the default choice for most situations.
| Factor | Detail |
|---|---|
| Fees | Typically 0.4–1.5% of transfer amount — among the lowest available |
| Exchange rate | Real mid-market rate with no markup — full value transferred |
| Transfer speed | 1–2 business days to most LATAM bank accounts |
| Setup | Simple — both sender and recipient create accounts; recipient gets paid directly to local bank |
| Best for | Regular contractor payments, most LATAM countries |
Payoneer
Payoneer is particularly popular among experienced freelancers and contractors who already have accounts set up. If your LATAM hire already uses Payoneer, it is a seamless option — transfers between Payoneer accounts are fast and low-cost.
| Factor | Detail |
|---|---|
| Fees | Varies by transaction type — Payoneer-to-Payoneer payments are low cost |
| Exchange rate | Competitive, though slightly less favorable than Wise in some cases |
| Transfer speed | Instant for Payoneer-to-Payoneer; 1–3 days to bank accounts |
| Setup | Both parties need Payoneer accounts — simple if your hire already has one |
| Best for | Contractors already on Payoneer; companies paying multiple freelancers |
PayPal
PayPal is widely recognized and easy to set up, but it is generally the most expensive option for international contractor payments. The fees and exchange rate markups add up, particularly for recurring monthly payments. It works well for one-off situations but is not the best default for ongoing contractor payroll.
| Factor | Detail |
|---|---|
| Fees | 3–5% for international transfers — significantly higher than alternatives |
| Exchange rate | Markup above mid-market rate — recipient receives less than face value |
| Transfer speed | Instant to PayPal balance; 2–5 days to bank account |
| Setup | Very easy — both parties likely already have accounts |
| Best for | One-time payments; situations where convenience outweighs cost |
Remitly
Remitly is primarily designed for personal money transfers but can work for contractor payments in markets where other platforms have lower penetration. Its unique feature is that recipients do not need a Remitly account — funds can go directly to a bank account or cash pickup location, which is useful in markets with less-developed banking infrastructure.
| Factor | Detail |
|---|---|
| Fees | Varies by delivery speed (economy vs express vs instant) |
| Exchange rate | Competitive for most LATAM markets |
| Transfer speed | Economy: 3–5 days; Express/Instant: same day or next day |
| Setup | Sender needs account; recipient does not — can receive to bank or cash pickup |
| Best for | Markets with less banking infrastructure; first-time international senders |
Quick comparison
| Platform | Best for | Fee level | Exchange rate | Recipient needs account? |
|---|---|---|---|---|
| Wise | Regular recurring payments | Low | Excellent (mid-market) | Yes |
| Payoneer | Experienced contractors | Low-medium | Good | Yes |
| PayPal | One-time / convenience | High | Below mid-market | Yes |
| Remitly | Cash pickup markets | Medium | Good | No |
For most U.S. companies paying LATAM contractors on a regular schedule, Wise is the default recommendation — lowest fees, real exchange rate, simple setup. Payoneer is a strong second if your hire already uses it. Both are widely used and accepted across Latin America.
Ready to hire your first LATAM professional?
HireLATAM advises on payment setup during onboarding. Shortlist in 5–10 days. Flat fee. 90-day guarantee on every placement.