The rise of the contractor
The remote-working practices introduced at the start of the Covid-19 pandemic in 2020 have accelerated long-term staffing trends. Companies all over the world have come to recognise the benefits of offering staff the chance to operate from any location. At the same time, the rapid take-up of the latest communication and collaboration technology means that, when it comes to recruitment, businesses can take a more international approach to sourcing the best talent.
Digital nomads: financial and lifestyle advantages
The pandemic saw a sudden, sharp increase in the number of individuals – either company employees or contractors – taking advantage of new remote working policies to move to a completely new location, either permanently or on a temporary basis. The term ‘digital nomad’ was coined to describe people who are no longer constrained geographically by where their employer is located, and who rely on digital tools to work and communicate with colleagues or customers.
At the same time, there has been a major pandemic-driven rise in the number of freelance workers and contractors as people all over the world seek a better work-life balance. Recent statistics suggest that independent contractors added $1.3tn to the US economy in 2021, while there are thought to be more than 2 million freelance workers in the UK alone at present.
The benefits of remote contract work and digital nomadism can be significant: workers can move to countries or regions where the cost of living is lower, and where they can enjoy lifestyle improvements such as better weather or a more relaxed pace of life. The relatively high salaries paid in the United States mean that Americans make up a significant proportion of digital nomads. Figures published in March 2023 indicate that almost half of the world’s digital nomads originate in the US.
Businesses can benefit too
This approach can also benefit employers: by implementing a remote-working policy, businesses can become more attractive places to work while also increasing the range of talent available to them. The introduction of systems that make it possible to operate anywhere in the world enables firms to advertise roles in new markets where the skills they need may be available at a lower cost.
This was particularly valuable during the pandemic, when it was difficult for workers to move across borders to join a new employer. Today, on the other hand, it means companies who might previously have relied on migrant workers can in many cases access the same talent from a distance without requiring those individuals to relocate.
The challenges of cross-border working
While the benefits are clear, there are of course a number of challenges associated with allowing workers to move to new jurisdictions, or indeed with hiring staff or contractors who are based in different countries. These include:
- Adhering to local employment laws: Depending on the nature of the relationship between the business and the worker, it could be necessary to ensure that local taxes are paid, and employee rights are respected.
- The impact on domestic taxes: Employers may also face issues relating to staff who spend part of the year abroad and the rest of it in the domestic market.
- Cybersecurity risks: Remote working can increase the chances of data loss or IT equipment being hacked, and employers need to make sure they have robust cybersecurity measures in place.
- Payroll problems: Getting payments to staff or contractors in a variety of locations and using a wide range of currencies can present significant hurdles. Traditional international payment services offered by mainstream banks may not be flexible enough to handle regular changes in where employees are based.
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Here's the short answer: yes, you can use a credit card to get money into someone's bank account abroad. "Credit card to bank transfer" means exactly that — you fund the transfer with your credit card, and your recipient receives it in their bank account. Or on their card, in their wallet, or as cash to collect, depending on where they are.
The card and the bank account do different jobs. Your card pays for the transfer. A provider like Paysend then pays the money out through local systems on the other end. It's one flow, and it takes about a minute in the app.
One thing worth knowing before you start: a credit card is usually the most expensive way to fund a transfer. Some issuers treat it as a cash advance, and credit tends to carry higher payment fees than debit. You'll always see the full cost, exchange rate included, before you confirm anything. What follows is: the ways your money can arrive, what each one costs, how fast it gets there, and the cheaper routes worth checking first.
Jeden Monat schicken Tausende Menschen, die in Tschechien arbeiten, einen Teil ihres Gehalts nach Hause – viele von ihnen sind Ukrainer, die Familie jenseits der Grenze unterstützen. Und der klassische Weg macht es schwerer, als es sein müsste: Banküberweisungen, die IBAN und SWIFT-Codes verlangen, Gebühren, die erst sichtbar werden, wenn das Geld schon weg ist, und tagelanges Warten, während zu Hause jemand darauf angewiesen ist.
Pavel Štich hilft seinen Lesern seit Jahren genau dabei, dieses Problem zu lösen. Er ist Mitgründer und Chefredakteur für Finanzen bei Moneyo.cz, einer unabhängigen tschechischen Plattform, die Geldtransferdienste, Aktienbroker und alternative Investments vergleicht – und Paysend-Botschafter, was bedeutet: Er testet selbst, was er empfiehlt, erklärt es verständlich und bietet seinen Lesern exklusive Vorteile. Wir haben ihn gefragt, wie Moneyo entstanden ist, wer die Plattform liest und warum er sich für Paysend entschieden hat.
