11 PayPal Alternatives that you’ll wish you knew before now

best PayPal alternatives

With 325 million active users, PayPal, the most famous online payment platform, rules the digital payments world. However, with FinTech start-ups on a rise and efficiency being the go-to strategy of online payment platforms, worthy alternatives have emerged. In this article, we take a look at PayPal, the features that make it so popular and explore 11 alternatives that promise to offer more:

» What is PayPal?

Founded in 1998, PayPal is an online wallet that enables users and businesses to transfer and accept money through a peer-to-peer payments system. The online finance management solution with its secure, easy-to-use interface and invoicing tools has been the go-to option for 87.5% of online buyers.

» Why you should look for PayPal alternatives?

If you are a business trying to capitalize on your core sector or an individual looking for an inexpensive and secure online payment platform, you can do better than PayPal.

The biggest drawback of using PayPal is its relatively high fee per transaction. Merchants are required to pay a 2.9%+ fixed transaction fee and this raises to a magnanimous 5% for microtransactions. For a business that is still setting foot or a start-up that is cost-cutting, these transaction fees add up to a considerable amount. PayPal functions as a simple payment platform and thus has limited functionality compared to the many options listed below. Moreover, better alternatives with lesser fees and faster service are available for the international transfer of funds.

As the old saying goes “don’t put all your eggs in one basket.” Whether you want to diversify your businesses’ online payment options or you are just looking for a cheaper and more user-friendly way to manage your daily online transactions, we have got you covered.

Top 11 PayPal Alternatives in 2020

1. Skrill - Online payments & Money transfer
2. Payoneer - Send & Receive International Payments
3. Stripe - Payments infrastructure for the internet
4. Fleep - Get ready to work smarter, better, faster
5. Google Pay - Money made simple, by Google.
6. WePay - Payment Gateway for Platforms
7. 2CheckOut - Modern Commerce. Simplified.
8. ProPay - INNOVATIVE PAYMENT SOLUTIONS
9. Amazon Pay - Connect your business to new shoppers
10. Square - Accept every payment quickly, easily, and securely.
11. TransferWise - A cheaper, faster way to send money abroad.

1. Skrill

Skrill is an efficient online payment platform that enables you to conduct transactions with just an e-mail id. It supports more than 40 currencies worldwide and is particularly chosen over PayPal by consumers that deal mostly with international payments. For individuals, using Skrill to transfer funds is almost always free. For small and medium enterprises, Skrill is fairly simple to set-up, secure, and cost-effective payments solution that helps them stay on track. It allows simple integration of your business’s accounts and multicurrency management to keep you on top of your financial balance sheet and deliver value faster.

Its payment gateway is integrated by a number of global online brands such as Facebook, Skype, eBay, and Steam.

› Special Features:

Efficiently transfer payments to more than 180 countries
Enables cryptocurrency trading and gambling directly from your Skrill account
Provides a prepaid debit card that you can use in thousands of stores around the globe.

Rating: 3 out of 5 on the Merchant Account Trust Score

Try it for its: Cost-effectiveness

2. Payoneer

Payoneer is a cross-border payments platform that is targeted at businesses, online sellers, and freelancers. It is tailor-made to enable businesses to manage multiple store payments across different marketplaces in one platform. You only need a local bank account to register on Payoneer and the platform is therefore a clear alternative to PayPal for people from countries that are not covered by PayPal’s local bank withdrawal option. Further, Payoneer is packed with great tools such as its billing services and free invoicing software to help freelancers meet the unique payment requirements of their international clients.

› Special Features:

Offers an all-in-one payment management system for businesses
Accepts over 150 currencies with no landing fee
Offers several secure and seamless methods for clients to process the transaction

Rating: 4 out of 5 on the Merchant Account Trust Score

Try it for its: Custom tools for freelancers

3. Stripe

Stripe is essentially an online credit card processor that allows online businesses to integrate payment functionality within their websites. It is ready to meet the all-round requirements of your business with tools that offer optimized checkout flows, real-time financial reporting, and transparent pay-outs. The platform charges a fixed fee of 2.9% + 30 cents for every successful card swipe.

It is a go-to PayPal alternative for e-commerce owners because of its various functionalities including Stripe Sigma, a feature that quickly analyses user’s Stripe data and enables teams to get faster business insights. Another useful offering by the platform is Stripe Atlas which helps businesses that are just starting out to avoid unnecessary paperwork.

It is integrated with popular shopping cart options such as Shopify, Wix, Weebly Target, and Wish.

› Special Features:

Uses meticulously designed APIs to create complete payments toolkit for online businesses
Mitigates risk with fewer manually initiated transfers as payment is automatically transferred to an outside bank account
Offers customized payment systems from a subscription service to a crowdfunding platform

Ratings: 3.5 out of 5 on the Merchant Account Trust Score

Try it for its: self-hosted checkout process

4. Google Pay

Google Pay is an emerging long-term payment platform alternative to PayPal with its instant bank transfer abilities and simple user interface. The payment solution has good-to-great features suitable for both businesses wanting to streamline their payment process and individuals looking for a convenient method to conduct transactions. Google Pay tops the cost-effective list with no transaction fee charged for UPI, bank transfer, and debit card transfers. The platform offers the security and credibility of its parent company Google with a user-friendly app that can efficiently process payments both online and in-person.

Google Pay is integrated with several online websites including Shopify, WooCommerce, Stripe, and Square

› Special Features:

Allows businesses to accept payments using QR code, a phone number or email-id; and instantly transfer it their bank account
It is largely free and doesn’t charge any fee from customers
Enables businesses to share customized offers with customers and track sales

Ratings: 4.7 out of 5 on the Merchant Account Trust Score

Try it for its: security, convenience, and cost-effectiveness

5. WePay

WePay is a cash management solution that enables e-commerce companies to integrate accounts and collect payments from donors and customers alike. Launched to compete directly with PayPal, WePay offers functionality and simplicity together with features such as same-day deposit and marketing automation. WePay can be set-up instantly and the platform works well with a diverse range of third-party payment platforms. It has a transparent transaction fee system and charges 2.9% plus $0.30 for each card transaction, and 1% plus $0.30 for ACH payment processing.

WePay is integrated with several leading industry players like GoFundMe, EventZilla, Big Commerce, Classy and BuilderTrend

› Special Features:

Perfect fit for customized payment options like online crowd-funding, ticket selling, and debt-collection
No hidden fees
Offers integrated payments for SMB SaaS, POS platforms, and marketplaces.

Ratings: 3.3 out of 5 on the Merchant Account Trust Score

Try it for its: diverse payment systems

6. 2CheckOut

2CheckOut is a monetization platform that aims to offer payments to and from most countries in the world. Its secure gateway and advanced fraud protection system passes nearly 300 security regulations with every transaction. It enables users to check-out using a diverse range of payment methods including credit/debit cards and PayPal. 2CheckOut is mobile-friendly and uses its modular design to help your business tackle the complexities of digital commerce. Offered in more than 180 countries with localized tax and financial services, 2CheckOut’s pricing is more affordable than PayPal in many countries.

2CheckOut is the go-to platform for many businesses such as White Shark Media, BitDefender, and Advisera

› Special Features:

Enables 87 currencies, eight payment types, and 15 languages.
Offers customizable checkout options including recurring payments
•  Flexible payment gateway that offers pricing based on the type of business

Ratings: 4.3 out of 5 on the Merchant Account Trust Score

Try it for its: Global reach

7. ProPay

ProPay is a payment processing solution that specializes in meeting the unique requirements of any business establishments - small or large, mobile or global, enterprise, or facilitator. It offers customized features and payment integration options corresponding to the industry. ProPay’s payment processing tools and competitive rates give you a quick and convenient way to begin accepting all major credit and debit card brands.

ProPay can be a welcome PayPal alternative for businesses looking for more than just a payment processing platform. ProPay offers instant boarding, underwriting, and processing solutions along with other crucial services to ensure that you can easily operate a payment facilitator model that is tailor-made for your business.

ProPay partners with reputed establishments like Control Scan, Threat Metrix, and Event Spot to provide their services.

› Special Features:

Offers three tiers of plans to choose from depending upon the needs of the business
Delivers a pre-order EMV chip card reader to improve the security features while accepting payments
Its unique API allows merchants to sign up and start accepting payments right off the bat.

Ratings: 4.5 out of 5 on the Merchant Account Trust Score

Try it for its: Flexibility, Business-specific offers

8. Amazon Pay

Amazon Pay is a well-known and trusted payment platform. It customizes its offerings based on the size of your business and caters to the needs of all types of entities from large enterprises to non-profit organizations. Since most online users already have an Amazon account, Amazon pay makes it simpler than ever to process payments without having to enter additional financial information and thus ensures lesser cart abandonment and improves conversions for your business.

Another advantage of Amazon Pay over PayPal is its simplified API-based mobile app payment gateway integration that ensures that customers will never go out of your website to process the payment. Amazon Pay has reasonable fees where it applies and you can send and receive up to $1000 monthly without any fees

Shinola Detroit, Avis Budget Group, Plan de Ville, WyzeCam are some of Amazon Pay’s reputed clients.

› Special Feature:

Offers hundreds of millions of Amazon customers a fast and familiar payment processing solution
Alexa tool that enhances payment experience by offering voice shopping, notification updates, and recommendations
You can pay on the go because it requires no separate registration process if you already have an Amazon account

Ratings: 4.7 out of 5 on the Merchant Account Trust Score

Try it for its: credibility

9. Square

Square is a comprehensive, all-in-one payment solution, specifically designed for low volume merchants. It is well-fitted to be much more than just a payment platform with add on features like appointment booking, payroll and employee management, elaborate invoicing tools, and virtual terminal features. It helps your business deliver value faster by eliminating unnecessary configuration steps and enables one-day deposits.

Square is a great PayPal alternative for small-scale businesses because it comes packed with a free domain and an online store. Square has standard transaction charges and offers dispute resolution facilities with your local bank if overcharged.

Blue Bottle Coffee Company, University of Wisconsin, and Food52 are some of Square’s esteemed clients.

› Special Features:

One of the best security features in the industry with full data encryption and PCI compliance
Offers free POS and mPOS integrations
Industry-specific tools for a wide range of services including Home and repair, health and fitness, and food and drinks.

Ratings: 3.8 out of 5 on the Merchant Account Trust Score

Try it for its: free domain and online store

10. TransferWise

TransferWise is a specialized international payments platform that directly competes with PayPal in terms of transaction fees. Its unique business model is designed to reduce cross-border transaction costs for both individuals and businesses. It follows a simple system where the money you transfer from place a goes into TransferWise’s Place A account and your recipient receives the money directly in place B from TransferWise’s Place B account. This way, your money doesn’t actually cross borders and thus your transaction fee is minimized. Its secure FCA regulated model is aimed at bringing transparency to finance.

Over 6 million people and businesses use TransferWise as their payment solution. It is integrated with banks across Europe including France’s second-largest bank BPCE, UK’s challenger Monzo, and the Dutch neo-bank bunq.

› Special Features:

Available in 59 countries and offers service on a wide range of currencies
Open API that makes processing large batches of transactions even cheaper for enterprises
Offers a borderless Mastercard Debit card for businesses to ease global transactions

Ratings: 4.1 out of 5 on the Merchant Account Trust Score

Try it for its: Convenience in International transfers

11. Shopify Payments

Shopify Payments is a complete financial management solution for e-commerce owners. It is an in-built payment platform in the Shopify website that makes it easier for your clients to have a smooth checkout experience by offering more than 100 diverse third-party payment options. Shopify Payments can be a wonderful PayPal alternative for e-commerce owners as it offers tools beyond the purview of just a payment solution. Shopify Payments securely manages your orders, stores customer info, and offers a centralized inventory to help you to stay on the top of your business. It also offers live order tracking and quick shipping options for a standard fee. Its three-tier plans allow you to choose a package that is best suited to your requirements.

Craft and Manson, LesCocoNuts, and Bliss Tulle are some of Shopify Payments happy customers.

› Special Features:

Offers set-up to selling in one click
Eliminates transaction fee when paying through the Shopify website
An integrated back office that gives you a complete view of your finances in one place

Ratings: 4 out of 5 on the Merchant Account Trust Score

Try it for its: Customized features for e-commerce

Conclusion

Choosing the right online payment management system is a key decision for your business. A platform, well-fitted for the needs of your business, can act as a stimulator for growth, whereas a wrong choice can give put you into unnecessary troubles.

We hope the above article helps you choose an online payment solution best suited to your need’s solution.

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