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How agencies pay contractors and subcontractors

Modern agencies deliver work through flexible teams of independents across projects, clients, and borders. Most tools were built for an older model. Petl Pay is built for how agencies actually operate today.

Summary, Petl Pay supports agencies and professional services teams that work in modular, networked ways. It collapses the workflow so work logged is approved and automatically drafted into a client invoice, with payments embedded and contributor payouts running through the same project record. One client invoice, many contributors, with allocation and settlement tracked together.

What agencies need, and how Petl Pay approaches it

What agencies needHow Petl Pay approaches itTypical outcome
One client invoice, many contributorsWork logs and allocations sit inside the projectCleaner client billing, fewer reconciliations
Project margin and settlement visibilityBillables, payables, and settlement tie back to the projectClearer margins, fewer payment surprises
Payments that match how agencies bankWorkflow and allocation first, faster routes layered onAdoption without ripping out existing tools
Distributed team payoutsBuilt-in wallets for key corridors, bank-to-bank near-instant transfers now liveMore reliable contractor and partner payouts

// Petl Pay is a software platform. Payment execution and custody are handled by connected banks or regulated partners. UK and EU bank-to-bank coverage is rolling out.

Who this is for

  • Creative, digital, and marketing agencies
  • Consultancies and professional services firms
  • Studios working with freelancers and micro-agencies
  • Fractional and networked delivery teams

The shift in how agencies work

The old model assumed one employer paying one employee on a monthly payroll cycle. Modern agency reality is many contributors per project, flexible commercial terms such as retainers, milestones, and revenue share, and distributed teams across currencies.

Old modelModern agency realityWhat Petl Pay supports
One employer paying one employeeMany contributors per projectMulti-party project allocations
Monthly payroll cyclesMilestones, retainers, revenue shareFlexible invoicing logic per project
Manual payouts and spreadsheetsDistributed teams across currenciesClear allocations with settlement tracking

How agencies typically pay contractors today

Most agencies use a stack of tools that were not designed to work together. The result is manual reconciliation and low visibility. A typical setup includes time tracking, invoicing software, bank transfers, and spreadsheets.

  • Contractor time and deliverables captured in one place
  • Client invoices created in another
  • Payments executed in a bank portal or third-party platform
  • Payouts to contractors tracked manually per project

Why cross-border contractor payouts add friction

Agencies paying contractors in South Africa and similar markets often do not have payments embedded into their invoice workflows. Even when invoicing is correct, settlement can be slow and intermediary fees add up.

With Petl Pay built-in wallets, agencies and contractors can receive USD or EUR quickly at average fees around 0.5 percent. Funds can be held in major currencies or withdrawn to an existing bank account, typically within around 60 seconds.

Petl Pay vs common agency stacks

Petl Pay is designed to complement existing tools like Stripe or Wise. Many teams keep those tools for card payments or simple transfers, and use Petl Pay for project logic, multi-party allocation, and settlement visibility.

CapabilityInvoicing toolsSpreadsheetsBank transfersPetl Pay
Work becomes the invoiceSeparate from time trackingManual, error-proneNot applicableLogs and approvals flow into invoices
One invoice, many contributorsOften manualManual mappingSeparate stepMulti-party allocations inside the project
Payables and payout visibilityNot designed for itUsed as a workaroundNo project contextTied to the project
Cross-border efficiencyDepends on railsNoneSlow with intermediariesWallet-based settlement, clearer fees
Domestic paymentsOutside the workflowManual trackingDisconnectedWallets plus bank-to-bank near-instant transfers, UK and EU rolling out

A project-first workflow

STEP 01Create the project

Define scope, rates, and contributors.

STEP 02Log and approve work

Capture activity before it becomes billable, with role-based approvals.

STEP 03Issue one client invoice

Even when many contributors are involved, the client sees one clean invoice.

STEP 04Allocate revenue

Split across freelancers and partners with clear logic and templates.

STEP 05Track in one ledger

Margin, payouts, and status all live inside the project.

Frequently asked questions

Can we use Petl Pay alongside existing tools like Stripe or Wise?

Yes. Many agencies keep Stripe for client card payments or Wise for simple transfers, and use Petl Pay for project logic, multi-party allocation, and settlement visibility.

Does Petl Pay replace payroll?

No. Petl Pay is designed for contractors, freelancers, and partner agencies. Payroll and employment tools remain separate.

Do all collaborators need accounts?

No. Teams can onboard collaborators selectively, depending on how deeply they want to use the workflow and payment features.

Why was this built?

Petl Pay is a direct result of operating Rafiki and living the problem of managing modern, project-based agency work with tools designed for an outdated model.

For all FAQs visit our FAQs page
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