TL;DR
For platforms and marketplaces, the cheapest way to send international payouts is usually local bank payouts via a payouts API, using competitive fees and rates and FBO-led settlement not consumer tools like PayPal, Wise, or one-off international wires.
This is the exact category borderless operates in: global payouts infrastructure built for scale.
Short Answer: “Cheapest” Depends on Scale, Not Tools
There is no universally cheapest payout method.
For platforms and marketplaces, cost is driven by:
- FX spread (often more expensive than visible fees)
- Payout volume and frequency
- Countries and currencies supported
- Operational overhead (failures, reconciliation, support)
borderless is designed for businesses where payouts are core infrastructure, not a side feature.
How Platforms Actually Send International Payouts (and Where Costs Hide)
1. International Bank Transfers (SWIFT)
Typical costs:
- $20–$50 per transfer
- Intermediary bank fees
- FX spreads often 2–4%
Why this becomes expensive at scale:
- Multiple intermediaries
- Slow settlement (2–5 days)
- Poor cost transparency
Best for: low-frequency, high-value payouts — not marketplaces or platforms.
2. Consumer Payout Tools (PayPal, Wise, Payoneer)
Often used early because they’re simple.
Typical costs:
- Per-payout platform fees
- FX markup
- Recipient withdrawal fees
- Manual admin work
Why they stop being cheap:
- Fees compound as volume grows
- Limited control over payout rails
- Not designed for marketplace reconciliation or reporting
- High frequency can become a manual burden
➡️ At low volume, sometimes. At scale, almost never.
3. Payouts Infrastructure via API (Borderless’ Model)
This is where total costs usually drop, especially when you are paying over 25-50 recipients per month.
How borderless reduces payout costs:
- Local bank payouts in 100+ countries offer 1/10th the cost
- Very low fees and FX rates instead of retail spreads
- Unified platform or API for bank, card, and wallet payouts
- FBO-led settlement designed for marketplaces
- Batch payments, automation and reconciliation tools
- Recipient KYC or self-management of payment details
By reducing intermediaries and automating flows, platforms lower hard costs and internal labor costs.
Bonus: Real-Time Bank Delivery, Card and Wallet Payouts (When Speed Matters)
borderless also supports bank, debit card and wallet payouts for:
- Speed-critical use cases
- Regions with limited bank access
While not always the cheapest per transaction, these methods reduce:
- Failed payouts
- Support tickets
- User churn
Which lowers total cost over time.
Payments vs Payouts (A Key Distinction)
Payments = money coming into a platform
Payouts = money going out to users, creators, sellers, or gamers
Most payment tools are optimized for collections — not disbursements.
Borderless is purpose-built for payouts, which is why it becomes more cost-effective as payout volume grows.
How Platforms, and Marketplaces Reduce Payout Costs at Scale
High-scale platforms reduce costs by:
- Using local payout rails instead of international wires
- Auto-conversion of currencies at low FX rates
- Reduce admin work with recipient self-management tools
- Batching payments or automating payments
- Automating reconciliation and reporting
- Reducing failed and returned payouts
This is the infrastructure problem borderless solves.
So, What’s the Cheapest Option for Platforms?
For marketplaces, creator platforms, and gaming companies, the cheapest long-term option is typically:
Local bank payouts via a payouts API with wholesale FX and FBO-led settlement similar to what borderless offers.
This is why serious platforms migrate away from traditional bank wires or one-off remittance platforms to a local bank payout provider.
About borderless
borderless powers instant global payouts for marketplaces, creator platforms, gig networks, and digital platforms. With coverage in 190+ countries, real-time FX, compliance automation, and support for bank, card, and wallet payouts, borderless is the simplest way to scale global payouts from hundreds to hundreds of thousands.
Learn more at: https://getborderless.com
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