PayPal is the undisputed king of America’s digital transaction wallet. There are almost 64 million mobile wallet users in the U.S., and PayPal holds the reputation of being the first choice of most of the people constituting this figure. As per the official website of the digital wallet, about 19 million merchants use their platform services to expand their business and transfer money online.
Apart from grabbing the first-mover advantage, PayPal’s popularity is also the result of its reward system, easy-to-use interface, high-tech security, and availability across almost all e-commerce channels. Of course, money transfer is still synonymous with PayPal, but that does not mean that options end here. Many other payment getaways allow people and businesses to carry out digital transactions quickly with utmost security and ease.
PayPal might be the preferred choice of consumers globally, but that shouldn’t stop you from exploring your options.
Here are the 5 best alternatives to PayPal that you should try today.
5 Best PayPal Alternatives
Other online payment alternatives to consider
The following alternatives to PayPal are chosen based on the following factors- transaction fees, subscription, niche services, saving on transactions, and integrations. While keeping in mind all these categories, few good alternatives to PayPal are enlisted below for your reference.
Stripe is considered to be the best option if amalgamated with Shopify, Wix, and Weebly. Data reveals that it is used by Amazon, Google, and Lyft too. Stripe provides customer interfaces, reconciliation, reports and insights, multiple payment options, revenue optimization, payouts, third-party integrations and support, and fraud and dispute options.
Coming to Stripe’s pricing policy, it has two categories, integrated and customized. In the integrated pricing policy of Stripe, users have to pay fees of 2.9% plus 30 cents for every successful card charge and get access to the complete payments platform with pay-as-you-go pricing. On the other hand, while customized, Stripe creates a system according to the user’s profit, and fees totally depend upon the setup of the plan.
CEO: Patrick Collison
Founded in: 2010
Net worth: $95 billion
Regions of service: Global
Skrill, a Paysafe company that is better suited for international merchants, has many American and European clients. Just like PayPal, Skrill is determined to keep a client’s information safe and secure. One of the biggest advantages of using Skrill is the ease of setting up an account on their platform.
Moreover, Skrill provides a chargeback protection, multiple integrations, a simple API, advanced fraud management, multi-currency accounts, advanced reporting, and analytics. Even services are multilingual for customer’s comfort. Skrill’s pricing policy includes international transfers for $4.99 percent, withdrawals for $5.50, and an annual prepaid card fee of $10.
CEO: Joel Leonoff
Founded in: 2001
Regions of service: 131 countries
Unlike other PayPal alternatives, Square dashboard is the easiest to use, having fully transparent fees and pricing methods without a long-term contract. Its simplicity attracts most small-scale businesses. Not just this, Square even allows the users to form and customize a business account that is highly secure and protected.
The pricing policy of Square is a standard processing fee of 2.9% plus 10 cents on all contactless payments, swiped payments, and payments with inserted chip cards. In addition, it costs 3.5 percent plus 15 cents to process keyed-in payments manually. Due to these reasons, Square is one of the best credit processors for small businesses.
The fees per transaction for both Stripe and PayPal are the same, i.e., 2.9% along with 30 cents. However, Stripe fees reduce once the user reaches $80,000 per month.
CEO: Jack Dorsey
Founded in: 2009
Regions of service: US, Canada, Australia, Japan, and the UK.
Venmo allows users to add their debit card and bank account information after which, transferring money to someone is a matter of a few seconds. Adding multiple accounts and saving money for the next transaction makes it popular among peer groups.
Venmo also provides the choice to its users to keep their accounts public. Since there is a public option, users can receive money through various friends and family members. Venmo’s pricing policy charges its users a minute fee of $2.50 for withdrawing from an out-of-network ATM.
Founded in: 2009
Net Worth: $38 billion (2020)
Regions of service: Only in the US
5. Shopify payments
If you are looking for an option that can integrate with a store and has a wealth of expertise in the e-commerce industry, surely go for Shopify payments. The basic features of Shopify payments are inventory management, web design tools, customer service, hosting, security, social selling, and shipping, all of which are the driving factors behind the popularity of the platform.
While going for its pricing policy, you need to choose between four plans. The Basic Shopify plan charges $29 per month; 2.9 percent + $0.30 per transaction. Shopify plan charges $79 per month; 2.6 percent + $0.30 per transaction. The Advanced Shopify plan charges: $299 per month; 2.4 percent + $0.30 per transaction. Lastly, the Shopify Plus plan starts at around $2,000 per month, $2.15 per transaction.
CEO: Tobi Lütke
Founded in: Shopify Payments were launched in 2013.
Regions of service: 175 countries
6. QuickBooks Payments
For accounting software users, Quickbook is the best recommendation. QuickBooks Payments help accept mobile payments, send invoices via a desktop computer or mobile app, set up recurring billing, and get real-time alerts when customers view or pay invoices, among many other functions.
Quickbooks pricing policy is minuscule for users. Users only have to pay per-transactional rates- one percent on bank transfers with a $10 limit, 4% on swiped cards, 2.9% on invoiced cards, four percent on keyed-in transactions, along with a $0.25 per-transaction fee.
Co-founder: Scott Cook
Developer: Intuit Inc
Regions of service: The desktop version is available for users in Ireland and the United Kingdom. The Mac version is available to users in the US.
There are many alternatives to PayPal, but considering any platform as the best totally depends upon the user’s requirements. Furthermore, every platform has its own positive and negative aspects. Therefore, going for a final decision requires thorough research and understanding of what the user wants from a PayPal alternative.