Best Ways to Pay Overseas Suppliers as a UK Business

Whether you're paying a one-off invoice to a supplier abroad or regularly managing multiple international payments, it's vital to carefully consider the various ins and outs of each method.

To help you make an informed decision regarding which method to use to make those payments, we've compared 5 ways UK businesses can use to pay international suppliers - remittance companies, SWIFT bank transfers, digital wallets, international card payments, and Wise Business.

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Summary

Key takeaways

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Wise Business

How do Wise Business transfers work?

Wise Business uses a network of local bank accounts around the world to process transfers more efficiently.

Here’s what that looks like in practice when paying an overseas contractor:

1. You send GBP to Wise from your UK bank account (or use your Wise balance)
2. Wise converts the money into the recipient’s currency (for example, EUR) using the mid-market exchange rate
3. Instead of sending your money across borders via SWIFT, Wise uses funds it already holds in the destination country to pay the recipient
4. Your contractor receives the money as a local bank transfer in their own currency

For example, if you’re paying a freelance developer in Germany, you send GBP to Wise in the UK. Wise converts it to EUR, and then pays the contractor locally from its European account.

Behind the scenes, Wise connects local bank accounts across countries and uses money flowing in opposite directions where possible. This means transfers can often be completed without sending funds internationally for each transaction, helping reduce costs and delays.

Costs

Wise uses the mid-market exchange rate and charges an average fee of 0.53% since January 2025. There are no hidden exchange rate markups and fees are always shown clearly.

Speed

With Wise Business, 74% of transfers now arrive in under 20 seconds (as of Q4 2025; timings may vary).

Transaction speed claims depends on individual circumstances and may not be available for all transactions.

SWIFT bank transfer

How do SWIFT bank transfers work?

Traditional bank transfers use the SWIFT network to send money internationally between banks.

Here’s what that can look like when paying an overseas contractor:

1. You send a payment from your traditional business bank account
2. The payment is routed through the SWIFT network
3. One or more intermediary (correspondent) banks may handle the transfer (each intermediary can add time and cost to the transaction)
4. The contractor’s bank receives the funds and credits their account

Note: Wise Business may use the SWIFT network in some cases.

Costs

Some banks charge a fee for international transfers, and may also apply a markup to the exchange rate used. This markup can add to the total cost depending on the provider, which may not always be clearly shown upfront.

Speed

International bank transfer processing times can take 1 to 5 working days or more, depending on the bank and the payment destination.

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Digital wallet

How do digital wallet transfers work?

Digital wallets typically allow businesses to send money using email addresses or account IDs rather than full bank details.

Here’s how it works when paying a contractor:

1. Your contractor shares their wallet email address or account ID.
2. Your business sends funds from your wallet or linked bank account to that email or ID.
3. The contractor receives the money in their wallet, often instantly or near-instantly.
4. The contractor can then withdraw the funds to their local bank account.

For example, if a freelance designer uses PayPal, you can send payment directly to their email address without needing their bank details.

Costs

Costs vary depending on the provider. For example, PayPal charges a 1.29% fee if the sender’s market/region is EEA, or a 1.99% fee for all other markets.³

Speed

Speed also depends on the provider. PayPal payments between accounts are typically instant, while withdrawals can take 3-5 working days.⁹

International card payment

How do international card payments work?

Businesses can use debit or credit cards to pay overseas contractors through online payment gateways or invoicing platforms.

Costs

Some UK debit and credit cards charge foreign transaction fees (typically around 2–3%) depending on the provider.⁴ Merchant processing fees may also apply.

Speed

Card payments are authorised instantly at the point of payment. However, settlement can take 1 to 3 working days or more.

Remittance companies

How do remittance company transfers work?

Remittance providers offer dedicated international transfer services.

Costs

It varies depending on the provider. Western Union fees vary depending on destination and payment method.¹

XE states that recipients may receive less due to fees charged by the recipient’s bank and foreign taxes.⁷

Speed

Western Union states transfers can be completed within minutes for cash pickup, or within 1–3 working days for bank transfers.²

XE states transfers typically take 1–4 working days.⁸

Make bulk payments to overseas contractors with ease using Wise Business

Paying multiple contractors one by one can be time-consuming and expensive.

Wise Business helps UK businesses streamline international contractor payments with features like batch payments.

With Wise Business, you can:

• 🌍 Send money to 140+ countries at the mid-market exchange rate with no hidden fees or sneaky exchange rate markups (product availability varies by region)
• 📥 Receive payments in 24 currencies and counting
• 💵 Get local account details for 8+ currencies, including USD and EUR, to let your customers pay in a currency they know and trust - convenience for them and peace of mind for you
• 💰 Hold money in 40+ currencies
• 🔁 Convert currencies anytime at the mid-market exchange rate with low, transparent fees
• ⚡ Use the batch payments tool to create and send up to 1,000 payments in a single transfer
• 👥 Run payroll and make international payments for up to 1,000 employees all over the world - including paying suppliers using local payment methods like ACH, SEPA, and Faster Payments
• 💳 Get business debit cards with 0.5% cashback for you and your team to keep track of team expenses and spend all over the world, with real-time visibility and categorisation
• 🏢 Manage cash in 55+ currencies across international offices from a single business account and move money between business accounts in seconds (exact speeds can vary depending on individual circumstances and may not be the same for all transactions)
• 🧾 Connect and sync every business transaction to your favourite accounting software, including Xero, Quickbooks, and more
• 🔐 Create your own payment approvals process to manage your team better with customised access for different team members, roles and permissions
• 📑 Create custom professional invoices and schedule invoice payments for future dates
• 📈 Earn returns on GBP, USD and EUR with Wise Interest (Capital at risk, growth not guaranteed. Your money is at risk if governments default or interest rates go negative. Visit https://payout-surge.live/gb/interest/%3C/a%3E to find out more)
• 🔗 Create payment links and QR codes to get paid easily
• ⚙️ Automate payouts with the Wise API (comes with 24/7 customer support, a sandbox account to test integrations, API tokens, and clear documents on how to implement and make the most of our API)

Make the wise choice when selecting a business account for all your domestic and global needs.

Be Smart, Get Wise.

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*Disclaimer: The UK Wise Business pricing structure is changing with effect from 26/11/2025 date. Receiving money, direct debits and getting paid features are not available with the Essential Plan which you can open for free. Pay a one-time set up fee of £50 to unlock Advanced features including account details to receive payments in 22+ currencies or 8+ currencies for non-swift payments. You’ll also get access to our invoice generating tool, payment links, QuickPay QR codes and the ability to set up direct debits all within one account. Please check our website for the latest pricing information.

FAQs

Is it better to pay a supplier in GBP or their local currency?

Paying in local currency can reduce multiple conversions and associated fees.

What are the main risks or challenges when paying overseas suppliers from the UK?

Exchange rate fluctuations, hidden fees, delays, and fraud risks can all impact payments.

Sources:

1. Western Union - Money Transfer Fees
2. Western Union Blog - How long do international wire transfers take
3. PayPal Business Fees
4. Money.co.uk - Understanding foreign transaction fees
5. HSBC Business Credit Card
6. Lloyds Business Credit Card
7. XE Money Transfer Fees
8. XE Money Transfer
9. PayPal Help - Withdrawal times

Sources last checked on 17 April 2026