PayPal, with an impressive 65% market share and over 16 million accounts, has dominated the online payment industry for quite some time. You can’t doubt this internet-based payment system’s efficiency since it is used in more than 200 countries. And yet there are entrepreneurs looking for the best PayPal alternatives for business to simplify the payment processes. Let’s unfold the reasons.
The fact that e-commerce has grown significantly over the past few years has resulted in a similar growth in the online payment segment also. A recent report states that the online payment market globally is expected to grow by approximately 9.4% during the next five years period.
Needless to say, this growth has resulted in many new players entering the market with their high-tech-enabled products. And hence arises the question, “how to pick up the right alternatives to PayPal for business?”
Here in this article, I talk about the 15 best PayPal alternatives for business, and also explain why they are worth considering. But before that, you might like to know why users are not so happy with PayPal and what to look for in your payment gateway.
Why Business Owners Are Searching For Best PayPal Alternatives For Business?
If you have remained a dedicated PayPal user (even I have used it for a long period) then you must have faced one or all of these situations, time and again. There are many reasons people no more like this payment gateway, but the common ones are –
- If your PayPal account gets suspended for any reason, they freeze the fund too. And in worst cases, your personal account may get affected!
- They charge quite a high fee for every transaction.
- PayPal seller protection does not cover digital goods.
- People complain about their extremely poor customer service. In fact, some say, if they decide to freeze your account or hold the payment for some reason, their service executives tend to disappear too!
To do away with these downsides, small and medium business owners have started exploring some alternatives to replace PayPal.
What to Look for in Alternatives to PayPal for Business?
Here are the key factors to consider while selecting the best PayPal alternative for your online business –
Payment processing platforms have three different fee categories – transaction fees, setup fees, and monthly fees. Some payment gateways charge for one-time setup. There are many who impose membership fees, while others charge a monthly fee for their service. However, all the payment processing platforms levy transaction charges on their clients. The fees you pay, have a direct impact on the revenue and growth of your business. So, I suggest picking up a PayPal alternative with a fee structure that suits your business model.
Multiple currency support
Country-specific businesses won’t have major issues related to currencies. But if you have a business with customers across the globe, you will need a payment solution that supports multiple currency processing. Many internet entrepreneurs seek the best PayPal alternatives for business which take into account currency and exchange rate fluctuations.
The recurring billing mode
Common forms of recurring billing include membership, subscription, or installment. If your business involves such payments, pick a PayPal alternative that integrates and automates recurring billing. This enables you to invoice your clients as per a specified payment schedule, for instance, monthly, quarterly, half-yearly, etc. A recurring billing payment model automatically boosts the cash flow of your business.
On-site payment feature
Do you know what irritates online buyers? Getting redirected to a different page to make the payment. An on-site payment feature enhances the user experience since it enables customers to make payments without leaving your site. If possible, opt for a payment processing solution that incorporates on-site payment.
Take extra measures to provide your customers a secure payment process. Check whether the payment processing platform abides by PCI DSS (Payment Card Industry Data Security Standard). The PCI DSS guidelines now make it mandatory to enforce encrypted data transmission, data protection architecture, and multi-layer defense.
Cyber fraud prevention tools like Address Verification System (AVS), IP geo-location, and 3D secure function are also must nowadays, to protect customer data and privacy.
Outstanding Customer Service
Imagine a gateway that takes too much time to solve discrepancies. Or an online payment system that sends only programmed replies from an automated answering machine. You are most likely to get irritated, won’t you? Thus it is important to look for top PayPal alternatives that assure human intervention and 24/7 customer support. This can immensely help in maintaining good relationships with customers.
So now let’s move to my list of best PayPal alternatives for business.
1 – TransferWise (Now Wise): One of the Cheapest PayPal Alternatives That Promises Greater Control Over Exchange Rates
If you have already heard about TransferWise or Wise., then you must know that their USP is “We use the real exchange rate”. This hassle-free payment processing solution assures no hidden fees, improper exchange rates, nor any unpleasant surprise. Rather they promise to provide a cheaper and faster way to send money to any location of your choice. Wise assures an exchange rate that is 3 times cheaper than PayPal! No wonder, it is fast becoming a popular PayPal alternative for personal use.
Few additional benefits include
- Easy sign-up process with your email id/ Google/ Facebook account.
- A user-friendly interface that instantly does the calculation, once you input the amount to send.
- An efficient tracking system that monitors the status of money transferred and keeps both parties informed.
- They have offices at prominent locations around the world. So, no chatbot but real people are there to reply to your queries!
2 – Klarna : Pay the Way You Like
With an intuitive and smart interface, Klarna presents a rich feature-loaded payment platform, designed to meet and exceed customer expectations. Merchants across the globe consider this Swedish company to be one of the best online payment options for business transactions. Klarna offers quite a flexible fees structure for different countries but generally, it is 3.29-5.99% USD + 0.30 USD transaction fees.
When you transact with Klarna, you get to enjoy
- Automatic withdrawal of payment on the due date
- Easy monitoring of your entire purchases and payments from a single platform
- Efficient customer service.
3 – Skrill : The Trusted PayPal Alternative With Buyer Protection
An industry-leading payment solution, Skrill is now rated among the top PayPal alternatives for several reasons. The platform offers global merchants the opportunity to convert the balance in their accounts into prepaid debit cards. Offering a free account setup, Skrill charges a fee of 2.9% + 0.30 dollars per transaction.
- Convenience in sending and receiving money, store cards, and linking bank accounts the way you want
- Top-notch security in storing your confidential information
- Instant processing with an email address
- And also easy buying and selling of Cryptocurrency.
4 – Payoneer : One Of The Top Paypal Alternatives For Businesses Looking To Expand Globally
It is undoubtedly PayPal’s biggest competitor. Payoneer accepts ACH payments, credit cards, and also debit cards. This top-notch payment solution offers speedy processing of transactions, approximately within two hours.
Choose Payoneer if you are a freelancer or a professional service provider. You can opt for this payment gateway if you own an e-commerce marketplace or a digital marketing company. This is one of the best alternatives to PayPal for business that allows payment into your local receiving account.
Payoneer helps in
- Fast expansion into new marketplaces
- Prompt payment request and easy withdrawal of your earnings
- Easy payment of your VAT
- Fast supplier payment
- Instant connection with the partner ecosystem
- And easy access to working capital
5 – Click2Sell : Selling and Payment Made Simple With a Click!
With a variety of plans for merchants, Click2Sell stands out from the crowd as one of the top PayPal alternatives right now. Besides simplifying the payment process, this first-rate payment solution also integrates a range of tools. The payment gateway enables automated sales management, affiliate tracking, and quick generation of reports.
Click2Sell also runs an affiliate program that lets you earn commission by selling products online. If you are the one looking for a genuine affiliate program to make some money online, you can definitely take a look at Click2Sell marketplace.
6 – ProPay : An Innovative and Secure Way to Do Online Business
This innovative payment processing solution caters to SMEs and large organizations. With ProPay, merchants holding Visa or Mastercard can send or receive money anywhere anytime. They simply need to pay a per-transaction fee of 2.69% + 0.30 dollars. For American Express cardholders, the payment structure is 3.19% + 0.30 dollars.
Merchants can also use ProPay JAK, which is a mobile phone credit card reader. It can carry out real-time processing of credit cards on Android and iOS phones.
Their USP is a payment solution that ‘fits with your business!’
7 – 2CheckOut : Start With the Minimum and Expand As Your Business Grows
Used in over 200 markets, 2Checkout is one of the top PayPal alternatives that incorporate 100 currencies and 30 languages. This advanced payment processing solution allows users to receive both PayPal and card payments as it seamlessly combines a payment gateway and a merchant account. The online platform features a robust shopping cart. It also includes a recurring billing payment model. 2Checkout usually charges 3.5% + $0.35 per successful sale.
With 45+ payment methods, 2Checkout promises
- Seamless payment
- Intelligent routing of payment
- Efficient multi-currency management
- Extremely flexible business models.
8 – WePay : Perfectly Secure Payment Solution for SMEs and Individuals
One of the best PayPal alternatives for business, WePay was acquired by JPMorgan Chase in 2017. Now it offers payment solutions with innovative fraud protection. In addition, it also enables your customers to make purchases through a virtual terminal without leaving your website. WePay charges 1% + 0.30 dollars for bank transfers and 2.9% + 0.30 dollars for credit card payments.
With WePay you can enjoy
- Effortless and secure integrated payment
- Instant merchant payment with an email address
- The Fast growth of your point of sale business
- Complete coverage for any payment related fraud and risk
- Full partner support
9 – Authorize.net : Contactless Payment on the Go!
This payment gateway received the Achievement in Customer Excellence (ACE) award for 11 consecutive years. This makes Authorize.Net – a Visa Inc. subsidiary, one of the best PayPal alternatives for businesses. Interestingly, this payment solution company is even older than PayPal. Their All-in-One gateway charge is $25 plus a processing fee of 2.9% + 0.30 dollars per transaction. However, they offer a wide range of options to make it super easy for small businesses to get payments from customers the way they want.
The other benefits of picking up Authorize.net are as follows
- They have a highly advanced fraud detection suite that is provided to every gateway account at no additional cost.
- A seamless checkout process for repeat customers.
- There are different payment options so that the customer can pay the way he/she wants.
- Credit card updates happen automatically every month.
- Digital bill is sent directly to the customer’s inbox.
- Very simple checkout process with a “Donate” button which you can add to your website.
10 – Zoho Checkout : Top Choice of Small Business Owners
It allows businesses to receive both recurring and one-time payments via customizable pages. As one of the top PayPal alternatives available, Zoho Checkout permits users to do a lot of things. It allows you to upload brand logos and change backgrounds. Further, it enables the customization of pages.
The standard plan, for 3 users, supports both web and mobile payments. Also, it helps in recurring billing and offers debit card support. Their basic plan starts at $9 per month.
Zoho is trusted by merchants and buyers alike for effortless online payment.
11 – Braintree : Serves Customers Globally
When it comes to simple and fast web and mobile payments for e-commerce sites, Braintree is the name merchants trust. It integrates a recurring billing payment model, credit card storage option, and a payment gateway. Braintree’s payment processing platform allows online businesses to accept card payments via a merchant account. It charges a standard processing fee of 2.9% + 0.30 dollars per transaction.
With Braintree, you enjoy the following benefits
- Easy access to the vast global market encompassing 40 countries and 130+ currencies supported.
- Easy settlement and robust fraud protection system.
- A friendly, easy-to-use user interface to accept payments the way your customer wants.
- The Braintree Vault stores sensitive data on a highly secure system to help businesses stay PCI-compliant.
12 – Amazon Pay : The Most Popular And Widely Accepted Payments Gateway Provider
Although Amazon Pay cannot process ACH transactions, it is regarded as one of the best PayPal alternatives for business for credit and debit card transactions. Since it integrates effortlessly with Alexa, buyers can use their smart home system to buy products via voice search. Amazon Pay fees start at 2.9% + 30¢ per transaction.
Why Use Amazon Pay?
- A highly streamlined process that enables buyers to complete the purchase in minimum time. A buyer doesn’t need to enter the shipping details every time as Amazon Pay makes it easy to fetch their details directly from the merchant’s site.
- With a retail-first approach, Amazon Payments makes it easier for sellers to keep their buyers happy with a seamless shopping experience. There are tools and features that sellers can use to attract new buyers and turn them into repeat customers.
- Amazon Pay abides by stringent safety measures which ensure utmost information security. The advanced security setup takes care of fraud detection and offers maximum security to the merchant and buyer.
- Their transaction-based fees structure is highly preferred by small and medium businesses who are not comfortable paying monthly subscriptions.
13 – Shopify Payments: Hassle-Free Transaction Without Third-Party Interference
If you manage a Shopify store, then you should try Shopify Payments. Shopify’s proprietary payment processing service accepts American Express, Mastercard, Discover, and Visa payments. The payment details for your Shopify order automatically get synced. This enables access to data from a single place. Shopify has different pricing options, the minimum being a monthly charge of $29 monthly plus 2.9% + 30¢ per transaction.
Few facts about Shopify Payments
- Transparent transaction so that you can monitor the entire process right in your Shopify dashboard. There’s no need to log in to another platform to track your fund.
- Even if you are using Shopify Payments, you can still pay through your preferred PayPal gateway.
However, the problem with Shopify Payments is that it is not available in many countries.
Also, it has stringent terms of service that merchants need to follow.
And yes, some do complain about funds being suddenly frozen as Shopify inspects fraudulent activities or chargeback errors.
14 – Square : Support For Every Stage of Business
A great solution to accept all types of contactless payments. You can get Square Reader for chip and contactless payments to accept chip credit cards, contactless credit cards, Apple Pay, and Google Pay. Or you can slide an iPad into the Square Stand to complete the point of sale. Square is one of the best PayPal alternatives for business that generally costs 2.9% + 0.30 dollars per transaction i.e. paid Square Invoice and e-commerce sale.
Benefits that You Enjoy With Square
- You pay only when you make a sale, else you pay nothing! A very transparent pricing structure which you can check out right in your dashboard.
- They charge a fixed rate for different types of credit cards.
- The money enters your bank account the very next business day.
- An extremely secure system that keeps a close watch on wrong people and fraudulent activity.
- An efficient customer service whereby you can speak to a real support executive and not a bot!
15 – Stripe : One of the Best PayPal Alternatives for Internet Business
When it comes to top PayPal alternatives for online businesses, Stripe tops the chart. It has an impressive track record of helping over a million businesses worldwide, (100+ countries to be precise). Stripe toolkit is now used by online businesses across all industries. It is best known for the agile payment processing platform that takes care of a range of payment-related needs.
Stripe also enables easy integration of its payment processing solution into projects using Stripe’s API. There’s a processing fee of 2.9% + 0.30 dollars per transaction.
Why Use Stripe:
- The transaction money directly enters your bank account.
- You can get paid by clients and companies worldwide.
- Stripe lets you pay for what you have used.
- Real-time fees reporting facility is also available.
- An extremely transparent fees structure without any hidden cost.
- It supports all sorts of mobile payments.
I have shortlisted these best PayPal alternatives for business based on their features, and ease of usage. But don’t follow my words blindly! Do your own research, compare their fees and features, and talk to their service executives. This little exercise will help in finding the right payment processing system that suits your business needs and budget.
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Disclaimer: We don’t promote not advertise any of the Paypal alternatives as mentioned above. Also, we request you to always check the terms and conditions by visiting the individual website before taking any decision.