Deel Review: Why I Stopped Using PayPal and Wise to Pay Contractors
Exclusive Offer: Get $500 in Free Deel Credit
For years, I paid contractors through PayPal and Wise. Honestly, it worked fine at first. It was cheap, easy, and got the job done.
But as my business started to grow, with more contractors, more countries, and bigger projects, I realized something important.
I was completely exposed. No contracts. No compliance. No legal protection.
That is when I started looking for a better solution and found Deel.
Before I explain how Deel works, let me share the story that made me care about this in the first place.
The Wake-Up Call 🚨
A friend of mine hired an overseas developer to build an app. The project looked like a success until that same developer used the exact code to release his own version of the app.
My friend had no contract. Just a couple of vague emails and a PayPal invoice.
And legally, the developer probably could do it.
The truth is, I have done the same thing before. You probably have too.
You find someone online, describe the job, pay them when it is done. That is it.
But once your business reaches a certain level, continuing to pay contractors this way can open you up to serious legal and financial risks.
The Hidden Risks of Using PayPal or Wise to Pay Contractors
Most entrepreneurs do not realize these risks until it is too late. Here are the big ones you need to know about.
1. No Contracts 📄
PayPal and Wise are just payment tools. Unless you create contracts yourself, there is nothing in place to protect you.
If there is ever a dispute over scope, deadlines, or deliverables, it is your word against theirs.
Even if you draft a contract, you have to ask yourself:
Is this contract legally valid in both my country and the contractor’s country?
Are the clauses enforceable under their local laws?
The rules vary everywhere, and they change often. Without a proper local contract, you might have zero legal protection.
2. No Legal Ownership of Work 🛠️
If ownership is not clearly transferred in a valid local agreement, you do not actually own the work.
That means a developer could reuse your code. A designer could repurpose your graphics. A writer could resell your content.
Without proper documentation, you have no recourse.
3. No Compliance or Legal Protection 🛡️
Without contracts, NDAs, or non-competes, you are completely exposed.
A contractor could take your processes, your client list, or your proprietary content and reuse them freely.
And without legal documentation, you cannot stop them.
4. Tax Compliance Issues 💰
If you are in the US and not collecting the right tax forms such as W-8BEN, W-9, or 1099, you could face compliance problems or even costly audits.
Outside the US, many countries have their own reporting requirements for contractor payments.
Trying to track and collect these forms manually, especially for global hires, is unrealistic.
5. Misclassification Risks ⚖️
If you are paying the same contractor long-term, there is a chance you are misclassifying them.
If the government decides they should have been an employee, you could owe back pay, benefits, and taxes, potentially in two countries.
The rules differ everywhere, and it is your job to get it right.
6. Administrative Chaos 📊
Paying one or two freelancers via PayPal is fine. But once you scale to multiple contractors across different time zones, currencies, and payment schedules, it becomes a nightmare.
You are juggling email threads, contracts, spreadsheets, and payment confirmations, hoping nothing slips through the cracks.
Why I Switched to Deel 🌍
Once I saw the risks, I knew I needed a better system.
That is when I found Deel. On the surface, Deel looks like another payment platform. But under the hood, it is much more:
Contracts: Locally compliant agreements for more than 150 countries.
Tax forms: Automatically collected and stored.
Compliance: Built-in NDAs, non-competes, and other protections.
Misclassification protection: Risk checks and guidance.
Multi-currency payments: Pay in the currency your contractors prefer.
It is like having a CRM for your team, but built specifically for global hiring.
How Deel Works (Step-by-Step) ✅
Here is what happens when you set up a contractor in Deel.
Add a contractor to your dashboard.
Choose the payment structure such as fixed rate, hourly, or milestone-based.
Select the country they are based in.
Fill in basic info such as role, seniority, and scope of work.
If you do not have a scope of work ready, Deel has AI to help you generate one.
Pick the currency and payment schedule.
Deel automatically flags any misclassification risks based on local laws.
Deel generates a legally valid contract tailored to both your location and theirs.
Attach any additional compliance documents such as NDAs.
Send the contract for e-signature.
From there, Deel tracks signatures, manages compliance tasks, and handles all payment processing.
Managing Global Payments in One Place 💳
Inside Deel, you can:
See all contractor invoices in one dashboard.
Pay in their preferred currency such as USD, EUR, GBP, CAD, INR, and more.
Switch payment methods with a click.
Track overdue payments and upcoming expenses.
Keep all contracts and tax documents stored securely.
No more jumping between PayPal, Wise, email threads, and spreadsheets.
The Compliance Advantage 📋
Deel has a Compliance Hub that shows you exactly which contractors have not completed required forms or documents.
It sends automatic reminders so you are not chasing people down at tax time.
You can also see country-specific public holidays so you can plan around contractor availability.
The Contractor Experience 🙌
A tool is only useful if your team actually uses it. Deel’s contractor portal is simple and intuitive:
Contractors see a task list such as setting up a payment method, signing contracts, and uploading tax forms.
They can view upcoming payments and withdrawal history.
Multiple withdrawal options are supported such as bank transfer, PayPal, Wise, and others.
They can request time off or submit expenses directly through the platform.
When PayPal and Wise Still Work
If you are hiring the occasional freelancer for a small project like a logo design or a quick blog post, PayPal or Wise can still work.
I still recommend creating a basic agreement and keeping it on file, even if it is just a simple template or something generated with AI.
It will not be perfect, but it is better than nothing.
When You Need Something More
Once you are building a real business with multiple contractors, especially across borders, the stakes change.
You need a system that:
Keeps you legally protected
Ensures compliance in every country you hire from
Centralizes contracts, documents, and payments
Scales as your team grows
The cost of putting that system in place is tiny compared to the cost of a legal dispute, tax penalty, or lost intellectual property.
Why I Recommend Deel (and How to Try It) 🚀
I focused on contractors in this post, but Deel also supports:
Hiring full-time employees globally
Running payroll in more than 150 countries
Managing equity, benefits, and equipment
If you are even considering growing your team, I recommend seeing how Deel works.
Here is how to try it with an exclusive credit:
Claim your exclusive $500 Deel credit which is good toward any plan.
Book a demo with a Deel representative. They will walk you through setup and answer your questions.
Mention the $500 credit during your call so they apply it to your account.
At $49 per month per contractor, that credit could cover several months of usage for free.
Final Thoughts 💭
If you are hiring internationally, your payment method is more than just a transaction. It is part of your legal and operational infrastructure.
PayPal and Wise are fine for small, one-off projects. But for a growing business with ongoing contractor relationships, they leave too many gaps.
Deel fills those gaps with contracts, compliance, payment flexibility, and an easy experience for both you and your team.
With the $500 credit, it is an easy decision to try it and see how much time and stress it saves you.
If you are ready to protect your business, streamline your contractor payments, and hire anywhere in the world with confidence, click here to claim your $500 Deel credit and book your demo today.
