Choosing the best payment solution for your online business is one of the biggest decisions to make. You can save yourself lots of cash monthly when you use a PayPal alternative that suits your business and clients' preferences. Although PayPal seems more popular than most of its alternatives, some PayPal similar companies offer equal services at cheaper fees. You want to be sure you utilize cheaper yet effective payment solutions so you can maximize turnover.
PayPal Overview
PayPal is one of the most popular payment gateways most online businesses use. It supports multiple currencies and is used in more than 140 countries across the globe. Like most payment solutions have their strengths and weaknesses.
Pros:
Popular payment solution in most countries
Offers up to 10 different payment options
It is mobile-friendly
Cons:
Parts of merchant funds are held
Transaction fees are somewhat high
Accounts may be frozen during when payment issues arise between businesses and customers
PayPal accounts in some countries are limited so users may look for better payment services
Transfer to the bank account from PayPal may take up to 4 business days to deliver.
12 Best Paypal Alternatives to Use for Online Business
1. 2CheckOut
2CheckOut is meant for businesses that need a payment gateway that is generally accepted and offers multiple currencies. 2CheckOut site can be translated into 30 different languages. It also offers up to 45 different ways of accepting payments. 2CheckOut fees are similar to PayPal's. However, businesses can save a few cents per international transaction.
Pricing: Transaction fees are as low as 2.9% + $0.30
Pros:
Easy to integrate with different online e-commerce stores
Faster payment delivery
Accepts major card payments.
Cons:
Parts of merchant funds are held
Not suitable for high-risk merchants
2. Shopify Payments
It was established in 2013 to help people who use Shopify e-commerce store to collect payments easily from their customers. Shopify Payments accepts Mastercard, Visa, American Express, and Discover. It merges payment details with orders so it is easier to process orders.
Pricing: Processing fees are as low as 2.4%
Pros:
Easy to integrate with Shopify e-commerce store
Faster payment delivery
Accepts major card payments.
Cons:
Options for non-card payments is grossly limited.
Not available in every country
Merchants pay as high as $15 for chargebacks
3. Amazon Pay
Amazon Pay handles debit and credit transactions with ease. It is mobile friendly. Amazon Pay integrates with Alexa. This helps customers use voice commands to pay for products on your store via their smart home hub.
Pricing: 2.9% + $0.30 per successful sale
Pros:
Accepts a wider range of credit and debit cards
Payment solution is mobile friendly
Voice commands are available for Alexa users
Cons:
Some stores may have issues with Amazon Pay integration
Customers may get transaction denied error message
4. Skrill
Skrill makes it easy to receive and send payments with only an email address. It offers its debit cards to users which can be used on ATMs worldwide. It is easy to transfer funds on Skrill to your bank account.
Pricing: To send or receive money, $0.50 + 1.45% is charged. Withdrawing cash to your bank account is free.
Pros:
Strong user protection
Available worldwide
App available for Android and iOS
Cons:
Support team delays response to tickets sometimes
Fees for currency conversion are high
5. Google Pay
With Google Pay, clients can use debit or credit cards stored on their Google Account yo pay in stores, on apps, and websites. Businesses can also use Google Pay to create offers, coupons, and gift cards to their clients.
Pricing: 2.9% of the transaction fee is charged on credit cards. Transactions made via debit cards and bank wire are free.
Pros:
It is one of the cheapest payment solutions
Google Pay offers enhanced security for both parties
Its app is available on Android and iOS.
Cons:
You may need to confirm many security codes if Google feels another person is trying to access your account.
It depends on phones
It does not issue a receipt
6. Payoneer
Payoneer helps to make transactions faster for small and medium scale businesses. It partners with many online advertising networks, freelancing sites, and e-commerce stores to process payments. Payoneer offers members a debit card as well as on online account. Payoneer funds can be wired into a bank account or withdrawn on ATMs worldwide.
Pricing: A 3% fee is charged on credit card transactions. Payments received from other Payoneer users are free of charge. 1% is charged on e-cheques.
Pros:
Free member to member payments
Apps available on Android and iOS
Good marketplace reputation
Cons:
Can only receive money from abroad
Debit cards may take longer to reach members outside the US.
You are charged annual fees for debit card
7. Authorize.net
Authorize offers secure payment solutions for small businesses. It is an extension of VISA. It is popular for its security and reliability. It provides point-of-sale checkout, subscription billing, invoicing, and nice API features. It features other payment options such as Apple Pay, PayPal, and VISA. It is a Paypal alternative for eBay.
Pricing: Gateway fee starts at $25 per month and varies with plans. Transactions are charged at 2.9% + $0.30 each.
Pros:
Highly secure platform
Very intuitive user interface
Supports multiple payment solutions
Cons:
Not the best way to send or receive money from family and friends
Transaction charges are almost the same as PayPal charges.
Length billing form to fill
8. Square
Square offers excellent point-of-sale checkout solutions. It is best for businesses that run based on cash payments. It is also suitable for taking payments online. Square also provides value-added business tools such as inventory and payroll manager. It offers online invoicing and subscription payment solutions.
Pricing: 2.75% is charged on every point-of-sale transactions. Fees vary on other kinds of transactions
Pros:
Reliable POS service
Instant payment delivery
Access to helpful business management tools.
Flat rate fees
Cons:
Not suitable for use in large industries
Issues regarding account stability may arise
9. Braintree
Braintree is a PayPal initiative. However, it can also be considered an alternative to the regular PayPal payment solution. Braintree is meant for large organizations like DropBox, Uber, Github, and the likes. Braintree offers lots of advanced features lacking in the regular PayPal Business account. It integrates seamlessly with other payment solutions like Google Pay and Apple Pay.
Pricing: Regular pricing starts from $0.30 plus 2.9% per transaction.
Pros:
Easy to integrate with stores
Lower pricing
Automatic notifications on failed transactions
Cons:
It is hard to run discounts on Braintree
There are reports of closed accounts and held funds
10. QuickBooks Payment
Intuit's QuickBooks Payment works perfectly with its accounting tool. QuickBooks Payment is ideal for paying freelancers and for sending and receiving payments into businesses. It is easy to create and send invoices. Setup your payment reminders and accept bank transfer from clients.
Pricing: Bank transfers are free. Card payments start at $0.25 and 2.9%. Pricing also differ based on plans.
Pros:
Easy setup of payment solution
Integrates payment directly into the accounting tool
All-in-one solution
Cons:
High processing fees
slow servers
11. Merchant Inc
Merchant Inc helps your business accept multiple cards and process payments with ease. It also runs a fair policy that allows merchants enough grace period to settle disputes with customers before freezing or suspending accounts.
Pricing: Starts at $0.25 + 1.99%
Pros:
Cheaper transaction fees
More grace period to settle merchant-buyer disputes
Strong protection against fraud transactions
Cons:
Ease of integration differs across platforms
Customer support needs to be improved
12. Payline
Payline was established in 2009 to make payments in-store and online more convenient. Payline is mobile friendly and offers one of the best payment services online.
Pricing: Starting at 2% per transaction
Pros:
Mobile friendly payments
Available on Android and iOS
Chargeback prevention
Strong fraud protection
Cons:
Monthly fees apply
Customer support works only Monday to Friday.
Developer tools are hidden
Conclusion
Take your time to discover which of these PayPal competitors suit your business. The best PayPal alternatives should offer more and cost less. You can enjoy quality payment solutions and save costs at the same time.
What else do you need to set up your online store? Find more free guides and tips here!
