Launched in 1998, PayPal has been the widely used payment application for businesses and self-employed freelancers as well. PayPal was founded by a team including Elon Musk, Max Levchin, and Peter Thiel. PayPal felt the need for online payments and stepped into the stream with numerous features. It provides a quick and easy way to send and request money online. PayPal starts with just linking your Bank Account or Credit Card, and you are open to doing international transactions by provisioning just your PayPal id. Thousands of online shopping websites have PayPal as a payment option; however, there are plenty of PayPal alternatives available out there.
PayPal is committed to giving layered security to personal bank information and offers effective fraud prevention using encryption techniques.
Since every picture comes with two sides., we cannot overlook some shortcomings of PayPal that prompt a user to go for an alternative of PayPal. Some reasons are as follows,
- The unavailability of PayPal in major countries has gained a reasonable position in the online market, including Pakistan and many other middle eastern countries.
- PayPal fees are high as compared to the alternatives, especially internationally.
- Suspension or Closing of Accounts without any prior notice.
- Lazy and long-awaited Withdrawals.
Although many people think of PayPal when it comes to their online payments, nevertheless it is not the only payment system available right now. The online payment system has been evolving, and major players are starting to take notice since there is a lot of room for competition. Apple, Google, and Samsung have all made their own rival platforms, and there are several lesser-known PayPal alternatives for online payments.
We have tried to give a complete analysis of alternatives to PayPal. We hope it will help you decide which is best for your business, targeted audience, and the targeted business niche.
Table of Contents
1. Google Pay
Pros:
- It’s very easy to install and use.
- It offers high levels of Security using encryption techniques.
- It can be used on a large number of android devices.
Cons:
- It’s not always accepted. Some stores and institutes still have reservations about it.
Google Pay is a contactless payment method as an alternative to PayPal that’s used by plenty of stores around the world. Google Play helps in smoothing the payment process. Consumers can send and receive money via email address or phone numbers. You can deliver personalized offers and recommendations, share loyalty and gift cards, and lower ticket costs with a mobile application. Businesses can use Google Pay as another way for customers to check out in their online store.
2. Payoneer
Pros:
- No Transfer Limit
- Direct transfer to a local bank is possible
- Quite easy and simple to use
Cons:
- Withdrawing from the local bank charges a fee.
Payoneer appeals to the person looking for PayPal alternatives by its pithy slogan “Go Beyond Your passport to global growth.” Payoneer normally suits small and medium-sized businesses. It has made the life of companies easier who have to send money to international vendors and suppliers. The freelancing community from the major hubs of freelancing jobs, Upwork and Fiverr, also have the support of Payoneer for withdrawal. This alternative of PayPal enjoys its users in over 200 countries and territories. Transactions between Payoneer accounts are free, but there are 3% fees for credit card transactions and 1% for eChecks payments. However, any change in fee structure can be viewed from here.
3. Square
Pros:
- It offers a free domain and online store.
- No authorization fee, business card fees, or refund fees.
Cons:
- Not ideal for high-risk merchants.
- Not suitable for high-profile businesses.
Square is a payment processor that allows making transactions in multiple forms. It’s the only alternative to PayPal that will also work for Point of Sale (PoS) transactions. Square has a mobile application that offers you contactless payments. You can carry on transactions and keep enjoying many important features relating to your payment, even offline. Square offers three different payment systems, i.e., the Square Stand, Square Terminal, and the Square Reader, with different pricing.
4. Skrill
Pros:
- Quite easy to use
- Operate in almost all countries
- Give a one-click option to Game lover for online game payments
- Awesomely Secure
Cons:
- Fraud Protection Tools are super intelligent and conscious, and minor negligence can hold your account
- People have reservations regarding their customer support
Skrill is also a great PayPal alternative and is similar to PayPal in a number of ways, but its dealing with cryptocurrency and payment for online games make it unique and worthy. You can send and receive money, link your bank accounts, and make payments with just your email address and password. It also offers a prepaid debit card so you can receive the payment on the debit card and withdraw cash from the ATM. Skrill is enriched with an effective fraud protection system that suspends a user account on any ill-suited act.
5. Amazon Pay
Pros:
- Can be trusted blindly.
- The fraud protection system is very strong.
- If you have an amazon account, the interface and usage are quite handy.
Cons:
- Available in very limited countries and currencies.
- A proper Amazon account must be possessed for using complete features, which normally most people don’t have.
This PayPal alternative is popular and trusted by peoples worldwide, especially related to e-commerce, because of its affiliation with the leading e-commerce brand. The payment process involves just simply logging from the user account where the user’s information is stored that makes the process fast and smooth. Pricing details can be viewed here.
6. WePay
Pros:
- provides a flexible API
- Multiple ranges of online payment options.
- No monthly charges to use WePay.
Cons:
- Not recommended to transfer a large amount
- Limited features
- Unavailable in many countries
This is yet another PayPal alternative that is also considered to be a rival of PayPal. However, WePay has a long way to go. Businesses prefer WePay for its same-day deposits; that’s why it’s been dubbed the apple of many entrepreneur’s eyes. WePay can be loaded to your website with just a simple and easy-to-install API. One of the main reasons for its popularity is the ultimate support for crowdfunding. As a matter of fact, WePay works well with many third-party payment services. For example, WePay’s partner FreshBooks now offers a payment solution called FreshBooks Payments by WePay.
7. Stripe
Pros:
- Available for companies and individuals all over the world.
- No hidden or monthly fee
Cons:
- You have to wait a few days after transactions to get access to the money
- Interface and usage may require some programming knowledge
- Merchant accounts are limited to only Canada, UK, Australia, and many European countries.
Stripe was established with an aim to manage transactions and make payments online easy for all. To support e-commerce and miscellaneous online payment, stripe has simple integrations that are added on the websites to make transactions globally. Stripe has acquired the trust of a leading e-commerce platform; for example, Squarespace and Shopify have considered Stripe as their favored payment processor.
8. Authorize.Net
Pros:
- The most reliable and secure for all types of business
- Active and efficient support services
- No setup or hidden fees
Cons:
- Monthly fees are normally higher than others
- International Transactions are relatively costly
Authorize.Net is recommended for processing mobile payments and small business owners. Authorize.Net aims to provide a frictionless transaction for the consumer. It has a better security system that allows users to customize transaction rules according to the business. It supports credit cards, including Visa, MasterCard, American Express, Discover, PayPal, and Apple Pay.
Sum up
So, these were the best top PayPal alternatives you can use to get payments. As you can see, the online payment world is wide enough to give you multiple options as an alternative to PayPal. Nevertheless, PayPal had 244 million accounts active worldwide in the second half of 2018. Each payment process comes up with a unique set of features and shortcomings. A competitive and thorough analysis of all these will help you in reaching a decision-making point to opt for a payment process. The decision to choose the best alternative to PayPal among them depends upon your business statistics, transaction frequency, target areas, and your country.