Freelancers working with European clients often rely on PayPal by default. Over time, many look for alternatives that offer lower costs, fewer disruptions, and better currency handling. This guide explains why PayPal can be limiting and compares several widely used alternatives that work well for EU payments.
Why Freelancers Look for PayPal Alternatives
PayPal is widely accepted in Europe, but it comes with recurring issues for freelancers based outside the EU and US.
High fees
PayPal charges a combination of transaction fees, cross-border fees, and currency conversion markups. For international freelancers, the total cost can easily exceed 5–7% of the invoice value.
Payment holds and reserves
Accounts are often subject to temporary holds, especially when receiving larger payments, working with new clients, or experiencing sudden changes in volume. These holds can last weeks and disrupt cash flow.
Account limitations and reviews
PayPal may limit accounts during compliance checks, sometimes without clear timelines. During these periods, funds can be inaccessible.
Unfavorable currency conversion
PayPal applies its own exchange rates, which typically include a markup over the mid-market rate. Freelancers paid in euros often lose money when converting to local currency.
Because of these issues, many freelancers prefer services that separate payments from marketplaces, provide local EU banking details, or offer transparent conversion rates.
Quick Comparison: Best PayPal Alternatives for EU Clients
| Service | Typical Fees | Availability | Best Use Case |
|---|---|---|---|
| Wise | Low, transparent FX fees | Most countries | Direct EUR bank transfers from EU clients |
| Payoneer | Medium, fixed receiving fees | Very wide global coverage | Working with EU companies and platforms |
| Skrill | Medium to high depending on use | Many countries | Clients who prefer wallets |
| Revolut | Low fees, limited access | Select countries | Freelancers with access to Revolut accounts |
1. Wise
Wise (formerly TransferWise) provides multi-currency accounts with local bank details in several regions, including the EU.
Pros
Provides European IBAN accounts for receiving EUR payments
Uses mid-market exchange rates with clear conversion fees
Suitable for SEPA transfers from EU clients
Transparent pricing structure
Cons
Not available in every country
No built-in invoicing or buyer protection
Compliance checks may apply for business use
Best for
Freelancers who want EU clients to pay via standard bank transfer and who prioritize low conversion costs.
2. Payoneer
Payoneer is widely used by international freelancers and contractors working with overseas companies.
Pros
Offers EUR receiving accounts for EU clients
Accepted by many European businesses and marketplaces
Supports withdrawals to local bank accounts
Strong coverage in non-EU, non-US countries
Cons
Receiving and withdrawal fees can add up
Currency conversion rates are higher than Wise
Annual account fees may apply in some cases
Best for
Freelancers working with EU companies, agencies, or platforms that already support Payoneer payments.
3. Skrill
Skrill is an online wallet that remains popular in parts of Europe.
Pros
Familiar to many EU clients
Fast wallet-to-wallet transfers
Supports multiple currencies
Cons
Higher fees for withdrawals and conversions
Less transparent pricing than bank-based services
Limited appeal for corporate EU clients
Best for
Freelancers whose EU clients prefer paying via digital wallets rather than bank transfers.
4. Revolut
Revolut offers multi-currency accounts and European banking features, but access varies by country.
Pros
EU IBAN accounts for EUR payments
Competitive exchange rates within limits
Modern banking features
Cons
Availability is restricted in many non-EU countries
Business accounts may have monthly fees
Not designed primarily for international freelancing
Best for
Freelancers who already have access to Revolut and regularly work with EU clients paying by bank transfer.
Which PayPal Alternative Is Best for You?
The right choice depends on how you work and who your clients are:
- One-to-one clients in the EU: Wise is often the most cost-effective and simplest.
- Agencies or platforms paying multiple freelancers: Payoneer is commonly supported and easier for companies to use.
- Clients who prefer wallets: Skrill can work, though fees should be monitored.
- Freelancers with access to EU-style banking: Revolut may be convenient if available in your country.
Many freelancers use more than one service to reduce dependency on a single provider.
FAQs About Getting Paid by EU Clients
Do EU clients prefer bank transfers or wallets?
Most EU businesses prefer bank transfers (SEPA) because they are standard, low-cost, and familiar.
Can EU clients pay invoices without PayPal?
Yes. EU clients can pay via IBAN transfers, Payoneer accounts, or approved platforms without using PayPal.
Are these services safe and regulated?
All services mentioned are regulated financial institutions in their respective jurisdictions, though regulations vary by country.
Will I need to provide tax information?
Most platforms require identity verification. Some may request tax-related details depending on your country and account type.
Can accounts still be frozen or reviewed?
Yes. Any regulated payment provider may review accounts for compliance, but transparency and response times vary.
Final Verdict
PayPal remains widely used, but it is not always the best option for freelancers working with EU clients in 2026. Alternatives like Wise and Payoneer often offer clearer pricing, better currency handling, and fewer disruptions.
There is no single best solution for everyone. The right choice depends on your country, your clients’ payment preferences, and how often you receive international payments. Choosing one or two reliable alternatives can significantly improve cash flow and reduce unnecessary costs.