The Best PayPal Alternatives

6 Best PayPal alternatives

While PayPal is a popular payment facilitator, it’s not the only game in town. In fact, an alternative may better suit your business’s unique needs and transaction types. Consider the following six PayPal alternatives that may be viable options for your organization’s payment processing needs.

1. Square

While PayPal got its start enabling cashless payments online, Square was a mobile payment pioneer. It introduced the first widely used card reader that allowed business owners to accept payments on a mobile phone. As our comprehensive Square review explains, the company has since become a robust option for businesses that accept card and digital payment methods in-store. It’s also a popular e-commerce payment processing solution; in fact, the platform can help a business build a free online store. Alternatively, you can connect the payment solution to your existing website seamlessly if it was made using GoDaddy, Wix, WooCommerce or Magento.

When it comes to Square vs. PayPal, Square might appeal more to brick-and-mortar retailers, restaurants and appointment-based businesses. This is due to its industry-specific software that simplifies managing unique business functions.

2. Stripe

Stripe is considered among the best credit card processors around. Like PayPal and Square, Stripe offers a suite of payment solutions. Its primary strength lies in online payments, although it also offers a virtual terminal and card readers.

Stripe is compatible with multiple credit and debit cards. In addition, it offers Stripe Checkout, which allows for secure one-click payments and real-time card validation. The platform can also create invoices, schedule email reminders for late payments and support recurring payments.

Stripe may be an excellent PayPal alternative for e-commerce and marketplace businesses, especially those planning to scale quickly. It has excellent security features. Plus, its transaction-retry protocol can increase sales that otherwise would have been declined.

3. Authorize.Net

Authorize.Net allows businesses to accept payments online, at retail locations and via mobile devices. The platform also supports phone sales and online billing. Aside from PayPal itself, Authorize.Net is one of the few providers that allows businesses to accept payments from PayPal accounts — in addition to other methods like major credit and debit cards, e-checks (ACH), and Apple Pay.

Some of its noteworthy e-commerce features include advanced fraud detection, customer card storage and its mobile POS app. The latter lets you view transaction history, change settings and process refunds on the go. Additionally, Authorize.Net’s Virtual Point of Sale (VPOS) is a virtual terminal that allows merchants to email or print receipts and connect to a card reader via USB or Bluetooth.

Authorize.Net may be a great PayPal alternative for e-commerce businesses, especially those with web developers on staff. It has excellent security features, but it’s not tailored to retail or restaurant businesses. Note that transaction costs may be higher for businesses that process many smaller purchases due to Authorize.Net’s per-transaction fees.

4. Shopify Payments

Shopify Payments is Shopify’s proprietary payment processing system. It conveniently integrates into a seller’s Shopify store, eliminating the need for an external payment service provider. The tool simplifies operations because all payments, orders, and analytics can be accessed, controlled, and operated directly from a single dashboard.

Another perk of Shopify Payments is that there are no additional fees for using the services of other payment processors. And, it supports multi-currency processing — a huge plus for businesses operating globally.

Shopify Payments is a particularly good PayPal alternative if your online business is based on the Shopify platform. Our comprehensive review of Shopify Payments goes into detail about the platform’s month-to-month terms and simple flat rates.

5. Braintree

Braintree, part of the PayPal family, is a payment platform built for rapidly growing businesses. It is developer-friendly; its customizable APIs let you integrate the platform seamlessly into your systems.

Braintree’s competitive rates come with various helpful features, such as recurring billing, subscription management and robust fraud prevention. It makes scaling up easy for all types of organizations.

Braintree may be a viable PayPal alternative for global businesses, as it accepts payments in over 130 currencies. It’s also a good option for those particularly concerned about recurring billing and fraud protection.

6. Payoneer

Like PayPal, Payoneer is an international money service. However, it has a wider reach as it supports over 200 countries and more than 150 different currencies. The tool also integrates with many popular online marketplaces, such as Upwork, Fiverr and Airbnb.

Customers can make payments through credit cards, ACH or their own Payoneer account; businesses can send invoices and request global payments. Payoneer also offers a convenient mobile app and a prepaid Mastercard for an annual fee.

Payoneer may be a noteworthy PayPal alternative for freelancers or those who regularly work with international customers.

What to consider when choosing a PayPal alternative

When you’re looking for the best PayPal alternative for payment processing, consider how your business operates. You should also take into account the features it requires — and doesn’t require. Avoid paying for features you won’t use, and find a payment gateway that offers the functionality your organization needs.

Consider the following factors when evaluating PayPal alternatives:

• Fees: Evaluate both fixed and percentage-based fees per transaction to understand the cost implications for your business. “Depending on your budget, it’s crucial to carefully consider transaction fees when choosing a provider, as these costs can significantly impact your bottom line,” advised Preston Dull, head of growth at Atomix Logistics.
• Security: Robust security features are essential to safeguard your company and customers against potential threats. Look for advanced encryption, PCI compliance and credit card fraud detection tools.
• Payment options: Consider the range of payment methods a potential processor can support. This way, you can accommodate diverse customer preferences. These may include major credit and debit cards, mobile payments, mobile wallets (like Apple Pay and Google Wallet), and support for international transactions in multiple currencies.
• Integrations: Consider how well the platform will connect with your business’s existing systems. It should integrate seamlessly with your e-commerce platform, shopping cart, accounting software, POS system and other essential business technologies.
• Payout speed: Dull emphasized the importance of payout speed for a business’s operations. “Consider the time it takes for funds to be deposited into your business account, as this affects cash flow,” Dull advised.
• Customer service and reputation: Clare Perry, president of BuyMax/BuyFin, stressed that a platform’s support is critical. “It’s a good idea to review feedback and ratings on third-party sites to gauge the company’s reliability and customer satisfaction,” Perry suggested. If 24/7 support and personalized service are your top priorities, ensure your payment processor offers these features as part of their standard service package.
• Global reach: Dull emphasized the importance of choosing a processor that supports international operations if you run a global business. “If you operate internationally, ensure the provider supports multiple currencies and has a broad geographic reach,” Dull advised.

Why you may want to use a PayPal alternative

PayPal’s payment processing services support many businesses, but it’s not right for everyone. Here are several reasons your company might benefit from a PayPal alternative:

• Transaction fees: PayPal’s fees can be higher than those of other payment processors. These costs may significantly impact profit margins, particularly for businesses with high transaction volumes.
• Account stability: A user-friendly, stable platform is imperative, but PayPal has been known to experience disruptions. “Some users report sudden account freezes or limitations with PayPal, which can disrupt business operations,” explained Dull.
• Customer support: PayPal’s customer support ratings aren’t always high. “There are concerns about PayPal’s responsiveness and effectiveness in resolving issues, leading businesses to look for providers with better support,” Dull noted.
• Feature limitations: PayPal may lack certain functionalities that specific businesses require, such as advanced invoicing, enhanced reporting tools or robust multi-currency support.

Jennifer Dublino contributed to this article.