PayPal Alternatives

At some point, PayPal was one of the most revolutionary technological achievements worldwide, and there was not much need for alternatives to PayPal. PayPal provided a safe way to quickly send and accept money from friends and family. This was quite efficient when it came to eBay as both the sellers and the buyers were quite wary of fraudulent activity. PayPal alternatives are similar systems that are either better than PayPal or offer needed features that are absent with PayPal.

Why should you use PayPal alternatives?

Many people find themselves asking, ‘what is a safe alternative to PayPal?’ especially when dissatisfied with their services. These alternatives come with differing features, pricing and compatibility. Knowing what each one offers gives interested parties insight into what would be the best PayPal alternative for them.

List of Top PayPal alternatives

Venmo

While mostly used and preferred for transactions with family and friends, Venmo can also be used for business transactions. By adding the platform to your mobile website or apps, you get Venmo’s social benefits giving you bonus marketing for your business.

Pros

  • They offer free withdrawals at MoneyPass ATMs in the US.
  • It is a free and entertaining alternative to PayPal
  • Can be used where MasterCard is acceptable
  • Transactions exceeding your Venmo balance can be completed using linked bank accounts.

Cons

  • They charge a withdrawal fee for ATMs outside the MoneyPass brand.
  • They cannot be used with international merchants
  • They share your payment history with the world
  • Venmo requires that both senders and recipients have installed the app

Google Pay

Google pay, also known as Android Pay or Google Wallet, gives customers the ability to pay in-app, stores using cards saved on your account or websites. They are ideal for quick easy and free payments from a well-known brand. It makes it possible for businesses to streamline the payment process for their customers. By merely adding the payment details of your debit and credit card to their account, customers can enjoy fast and convenient payments from whatever location. Google pay also allows customers to send money to anyone with a phone number or email address even if they are not registered Google Pay users. It also makes it easy to deliver custom mobile offers to customers and reduces the need for ticketing. They also have apps for both Android and iOS and their transactions are free.

Pros

  • Trough Google business, you can receive payments from your customers, either in a physical store or on a website.
  • Sending and receiving payments is fast and only takes a moment.
  • Through their primary feature enabling people can send out payments from the comfort of their smartphone either in person or online.
  • They are considered to have pretty solid security.
  • There aren’t any transaction fees charged, even on your customers.

Cons

  • This system is still limited to iOS devices and Android devices

Amazon Pay

Amazon Pay is considered the best PayPal alternative to use when it comes to checking out online as it speeds up the process. It is also considered the best PayPal alternative for eBay. It has portals for charities, merchants, and shoppers. Amazon also gives its users the benefit of Amazon’s fraud protection for free. The transaction fees for Amazon Pay are considered to be quite similar to PayPal

Pros

  • The transaction fees for Amazon Pay are quite identical to PayPal
  • Amazon offers quite advanced security in comparison to its competitors
  • Starting up with an Amazon account makes the sign-up process and interface easy
  • Many people are well versed on Amazon. This gives them an easy time when making payments

Cons

  • Amazon charges some random fees and unexpected deductions, such as the domestic processing fees and the cross border processing fee.
  • Users may require a little programming knowledge to be able to integrate with their online store.

Payoneer

Just like with Skrill, Payoneer comes with a debit card and an online account.  This makes it super easy to shop online and send and receive money. Payoneer helps you get paid securely, quickly, and at a low cost whether you are a freelancer, business owner, or professional. They support a wide variety of industries and are not restricted to e-commerce, vacation rentals and advertising. Their most notable benefit is with the debit card making it possible to visit an ATM and paying over the counter. Currently they have over 4 million users in more than 200 countries. Their pricing is reasonable as payments from other Payoneer customers are free. It is also open to receiving accounts using Payoneer’s Global Payment service. 3% is charged on credit card payments, in all currencies, from your customers and 1% on eChecks. Pricing varies for payments made via other marketplaces and networks. Many reviews consider Payoneer a sound system for small and medium-sized businesses. They also have apps for mobile support compatible with Android and iOS devices.

Pros

  • Payoneer can be used for transactions anywhere in the world.
  • Their transaction process is simple and requires no programming knowledge.
  • Users can quickly and easily set up an account with Payoneer.
  • Funds on Payoneer can easily be accessed from your bank account or through an ATM.
  • Their simple pricing that comes as a monthly billing is quite appealing to customers.
  • Transactions between Payoneer accounts are free.
  • Payoneer offers handy integrated tools to help them accept money from clients, especially with international payments.

Cons

  • Many online reviews are noted to have lodged complaints about their customer service.
  • There is a fee charged on transferring funds to a bank account while other competing systems like PayPal will do it for free.
  • Their ATM transactions charge a pretty high fee.
  • When a client accepts a credit card, they are charged a high fee.
  • Customers are unlikely to find payment gateways with Payoneer.

Stripe

Stripe is considered to be an ideal alternative and is preferred by businesses in need of an intuitive and flexible application programming interface (API). It is regarded as a perfect PayPal alternative for online companies and stores. They have designed their services to favor developers and believe that payments are a problem rooted in code, not finance. This is seen where they eliminate the need for gateways and merchant accounts. They handle everything from payment collection to automatically sending them to banks. They even handle Bitcoin transactions and ACH payments. Their underlying transaction fees are however not that different from PayPal. There are no monthly fees and deductions but each transaction has a 2.9% + $0.30 fee for every successful charge.

Pros

  • They automatically send your transactions to your bank account
  • They make it possible to perform mobile payments
  • Customers only pay for what they use.
  • They have a real-time fee reporting service
  • Accept payments and transactions all over the world
  • They have a transparent pricing plan with no hidden fees and monthly deductions
  • They support apple and android pay

Cons

  • Your money may take a few days to arrive
  • Their interface may require a little programming knowledge
  • Despite customers being able to accept payments from all over the world, merchant accounts are only accessible in the US, UK, Canada, Australia and most of Europe.
  • International cards come with a 1% additional transaction fee

Braintree

Braintree is considered ideal for large businesses and corporations such as Uber and Dropbox. It is a PayPal service but can still be considered as an alternative. They offer clients the ability to accept money in over 130 currencies and supports over 45 countries. They offer these corporations necessary features such as recurring billing and a hands-on customer support team.

Pros

  • They are compatible with a wide variety of payment methods, including PayPal and Venmo.
  • Their pricing model is clear and straightforward.
  • They allow for both online and mobile payments.
  • They have far more advanced features in comparison to PayPal
  • Reviews show that their customer support is pretty efficient and reliable
  • Braintree has a specialized marketplace payment system.

Cons

  • Users may require some programming knowledge in case they are planning to implement Braintree on their website.
  • The system requires a separate merchant account for it to work
  • Aside from the main transaction fee, they have an extensive list of additional charges.

Dwolla

Dwolla is ideal for fast-growing businesses. It is developer-friendly and is easy to integrate with your application. It is built for volume and can automatically send up to 5000 payments in a single API request.

Pros

  • Dwolla boasts powerful and easy to use branding tools.
  • It is upper comfortable with making banking transfers.
  • Their transaction fee is quite reasonable at only $0.25.
  • Dwolla offers next day transfers for a flat fee.
  • With Dwolla, the senders are allowed to send the fee if it is necessary.
  • It gives users ability to automate mass pay-outs.
  • They offer an instant cash transfer.

Cons

  • Payments cannot be made unless both the sender and receiver are using Dwolla.
  • Dwolla accounts can only be created in the United States.
  • They charge pretty steep monthly fees.

2Checkout

2checkout is considered one of PayPal’s alternatives mainly because it accepts payments globally. Their costs in the US are not that different from PayPal but other countries enjoy slightly better rates when taking payments. They offer eight payment types, 87 currency options and 15 languages. They provide a mobile-friendly experience with branding customized to the client’s business.

Pros

  • They accept primary payment methods such as credit cards, debit cards and PayPal.
  • They offer eight payment types, 87 currency options and 15 languages.
  • There are no setup or monthly fees with 2Checkout
  • There are over 300 security rules for each transaction to give advanced fraud protection
  • They enable users to create recurring billing for their customers
  • 2checkout lets you connect gateways to merchant accounts

Cons

  • Payments from customers outside the United States are charged a 1% fee
  • All chargebacks are billed $20
  • They charge 2% to 5% above the going exchange rate when it comes to currency conversion.

Intuit

It is considered ideal for small businesses. QuickBooks payments promise payments at twice the usual speed. Users can send invoices online, take mobile card payments and set up recurrent billing

Pros

  • Intuit can be integrated with QuickBooks
  • They can send invoices just like PayPal
  • Users can get paid anywhere through mobile payments
  • Intuit accepts ACH bank transfers
  • It gives users the ability to include pay now buttons on their websites
  • They enable users to connect their payments with payrolls and timesheets

Cons

  • Their rates can be quite competitive especially when not working with QuickBooks
  • It is not ideal for personal sending and accepting transactions.

ProPay

They offer payment solutions for enterprise businesses, small businesses, and industries in direct selling, legal and auto dealerships. ProPay facilitates credit card payment and offers global commission payment and disbursement options. Their one-click email payments are ideal for SaaS platforms, software providers and marketplaces.

Pros

  • There are no monthly minimums
  • They have a predictable flat-rate pricing
  • They are ideal for e-commerce and direct selling industries

Cons

  • They charge setup fees and annual fees
  • They are pretty expensive for high volume merchants

WePay

WePay was launched to compete directly with PayPal. They are a card processing solution that supports online payments. They far outshine PayPal when it comes to crown funding as its features and API are specifically designed for this type of transaction. They also interestingly cannot accept payments from PayPal.

Pros

  • They provide a flexible API
  • Users can get their accounts set up pretty quickly.
  • WePay is optimized for crown funding.
  • They have no monthly deductions and payments
  • It is cheap to process ACH payments with WePay

Cons

  • They do not offer in-store card processing unlike their competitors
  • They also don’t accept funds from PayPal
  • In comparison to PayPal, its eCommerce features are weak.

Authorize.net

This one is quite popular with online stores, mainly because they offer reasonable rates. They also provide quality customer service and a user-friendly interface. It cannot, however, be used to send and receive payments from friends and family. Authorize.net is considered a quality alternative for PayPal for clients who would like to get in on the most widely used gateway on the market.

Pros

  • They have security and reliability way better than their competitors
  • Their account comes with a free mobile app and a swiper card
  • They are considered to have the best 24/7 customer support in this industry.
  • Users can sync with QuickBooks
  • They also have no setup fees for merchant accounts and payment gateways.

Cons

  • They charge a monthly gateway fee and chargebacks of $25
  • They add a 1.5% assessment for international transactions
  • Unlike with PayPal there is no personal finance and sending tools

BlueSnap

With BlueSnap, a user gets a merchant account, a gateway solution, among other features to help grow your business.

Pros

  • They have no monthly maintenance fee for the first year, and after the first year they waive monthly fee
  • They give the ability to process over 100 global payments
  • Their intelligent payment routing offers optimized conversions, chargeback management, risk management, and payment analytics to its users.
  • It is easily integrated with the available systems making implementation simple

Cons

  • They lack enough compatible integrations

Square

Square offers give a free online store and domain. They combine this with invoicing and shopping cart integrations, virtual terminal features and a card info storage vault. Once a user selects their business size and types, they are signed up for square. They are preferred by retail businesses and for in-person transactions.

Pros

  • They offer extra add-on services for budding businesses
  • There are no monthly fees and deductions with square
  • They are quite viable for low-volume merchants

Cons

  • They are only available in the UK, US, Japan, Canada, and Australia as a payment gateway.
  • It is not preferred for high-risk merchants
  • Their accounts can be unstable as they are a third party aggregator

TransferWise

This is a cheaper alternative to PayPal when it comes to international transfers. It is ideal for freelancers, consumers, and online businesses to carry out transactions across borders with minimal fees.

Pros

  • Their pricing is very transparent
  • Having 4 million customers globally makes them widely acceptable and cheap when it comes to international transfers
  • TransferWise for business allows users to invoice customers in their preferred currency
  • The transfers are fast and competitive as the money doesn’t cross borders

Cons

  • Only bank transfers can send and receive money
  • They don’t yet have a recurring billing feature
  • They only accept a few currencies with a borderless account. These are EUR, USD, AUD and GBP.

What are the best PayPal alternatives for business and sending money to friends and family?

Square is considered one of the best Paypal alternative for business along with Amazon, Braintree and Authorize.Net. Based on past reviews and expert opinions, the best PayPal alternative for friends and family is considered to be Dwolla, followed by Venmo, Google Pay, Payoneer and 2Checkout. Stripe is deemed to be diverse and ideal for both parties.

Final Verdict

This article goes to answer the question, “what is a PayPal alternative?” Having dominated the industry for many years without much change, opportunity for competitors to gain on them arose. This is seen where other competitors in the industry have based their designs on the shortcomings and missing features of PayPal. Different systems are ideal for different scenarios and it is time people knew what their best options would be before signing up for these services.

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