How agencies pay contractors and subcontractors
Agencies no longer operate as fixed teams with permanent payrolls. Modern delivery is project based, collaborative, and often cross-border, with flexible teams of independents contributing to outcomes. The problem is that most tools were built for an older model.
Petl Pay supports agencies and professional services teams that work in modular, networked ways. It reflects how agencies actually operate today, with flexible teams of independents collaborating across projects, clients, and borders.
Petl Pay collapses the workflow: work logged is approved and automatically drafted into a client invoice, with payments embedded, and optional contributor payouts running through the same project workflow.
| What agencies need | How Petl approaches it | Typical outcome |
|---|---|---|
| One client invoice, many contributors | Work logs and allocations sit inside the project, not scattered across tools. | Cleaner client billing and fewer reconciliations. |
| Project-level margin and settlement visibility | Billables, payables, invoice status, and settlement tie back to the same project view. | Clearer margins and fewer payment surprises. |
| Payments that match how agencies already bank | Use Petl for workflow and allocation first, then layer faster settlement routes where useful. | Adoption without ripping out existing tools. |
| Distributed team payouts, domestic and cross-border | Built-in wallets enable faster settlement across key corridors; bank-to-bank coverage is on the UK/EU roadmap. | More reliable payouts for contractors and partners. |
1) 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
2) The shift in how agencies work
The old model assumed one employer paying one employee on a monthly payroll cycle. The modern agency reality looks different: many contributors per project, flexible commercial terms (retainers, milestones, revenue share), and distributed teams across currencies.
| Old model | Modern agency reality | What Petl Pay supports |
|---|---|---|
| One employer paying one employee | Many contributors per project | Multi-party project allocations |
| Monthly payroll cycles | Milestones, retainers, and revenue share | Flexible invoicing logic per project |
| Manual payouts and spreadsheets | Distributed teams across currencies | Clear allocations with settlement tracking |
3) 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 are captured in one place.
- Client invoices are created in another.
- Payments are executed in a bank portal or third-party platform.
- Payouts to contractors are tracked manually per project.
4) 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 can add up.
With Petl Pay’s built-in wallets, agencies and contractors can receive USD or EUR quickly and, on average, around 0.5%. Funds can be held in major currencies where appropriate, or withdrawn into an existing bank account, typically within around 60 seconds.
5) Comparison: Petl Pay vs common agency stacks
Petl is designed to complement existing tools like Stripe or Wise. Many teams keep those tools for card payments or simple transfers, and use Petl for project logic, multi-party allocation, and settlement visibility.
| Capability | Traditional invoicing tools | Spreadsheets | Bank transfers | Payment platforms | Petl Pay |
|---|---|---|---|---|---|
| Work logged becomes the invoice | Usually separate from time tracking. | Manual consolidation and error-prone. | Not applicable. | Not designed for work logs. | Work logs and approvals flow into invoices by project. |
| One client invoice, many contributors | Possible, but often manual. | Manual mapping of who gets paid what. | Separate step from invoicing. | Possible, but often not project-native. | Multi-party allocations and settlement tracking inside the project. |
| Accounts payable and payout visibility | Not designed for distributed payables. | Used as a workaround for visibility. | No project context. | Limited visibility into project margin. | Payables, receivables, and payout status tied to the project. |
| Cross-border settlement efficiency | Depends on separate rails. | No settlement capability. | Often slow with intermediary fees. | Varies by corridor and platform. | Wallet-based settlement designed for key corridors and clearer fees. |
| Domestic payments | Usually outside the workflow. | Manual tracking only. | Works, but disconnected from project tracking. | Varies by platform. | Supports payouts via wallets; bank-to-bank on the UK/EU roadmap. |
6) A project-first workflow for agencies
- Create projects with defined scopes, rates, and contributors.
- Log and approve work before it becomes billable.
- Issue one client invoice, even when many contributors are involved.
- Allocate revenue across freelancers and partners with clarity.
- Track margin, payouts, and status in one project ledger.
FAQ
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.
Payments, settled. Across projects, contributors & currencies.
One payment. Many payouts. Orchestrate multi-party payments instantly. Purpose built for project-based teams.
