In 2024, seamless international transactions are more important than ever. While PayPal has been a familiar name for online payments, users might be looking for alternatives that better suit their international needs. Maybe you’re a freelancer working with overseas clients, a globetrotter sending money back home, or an e-commerce business looking to expand your customer base.
This guide dives into the world of PayPal alternatives, exploring popular options and the factors to consider when choosing the right one for you. Whether you prioritize low fees, seamless mobile payments, or international transactions, we’ll help you find the perfect fit beyond PayPal.
What is PayPal and its Functionalities?
PayPal is a widely recognized online payment platform that facilitates sending, receiving, and holding funds online. It acts as a secure intermediary between your bank account or credit card and the online merchants or individuals you’re transacting with. Here are some of PayPal’s key functionalities:
- Sending and receiving money: Transfer money between friends, family, or businesses with just an email address or phone number.
- Online purchases: Easily pay at millions of online stores worldwide that accept PayPal as a payment option.
- Secure online account: Hold funds in your PayPal account for future transactions without sharing your financial information with each merchant.
- International payments: Send and receive payments internationally, though some limitations and fees may apply.
- Buyer and seller protection: PayPal offers certain protections for both buyers and sellers in case of issues with transactions.
Comparison Table for PayPal Alternative
| Alternative | Transaction Fees | Security |
|---|---|---|
| Venmo (US) | 1.75% per transaction ($0.25 minimum and $25 maximum) | Two-factor authentication |
| Square (US) | 2.6% plus 10 cents for most in-person transactions. | PCI-DSS compliant |
| Stripe | 2.9% + 30¢ for each successful card charge. | Secure encryption |
| Google Pay | 1.5% (minimum fee of $. 31) | Secure element & Google Pay PIN |
| Apple Pay | No fees for typical transactions | Secure element & Face ID/Touch ID |
| Zelle (US) | Typically no fees, but some banks may impose their own charges. | Uses bank-level security |
| Cash App (US) | Free (standard transfers), fees for instant transfers & some investments | Two-factor authentication |
| Wise | Fees vary depending on the amount transferred and the destination country. | Secure encryption |
| Payoneer | Varies by service | Secure encryption |
| Skrill | Varies by transaction type | Secure encryption |
| Amazon Pay | Transactions fees $0.59 | Secure encryption |
| Shopify Payments | fee of 2.9% + $0.30 per transaction | Secure encryption |
| Dwolla | 0.5% per transaction | Secure encryption |
| Authorize.Net | ranges between 0.5% and 5% plus certain fixed fees. | Secure encryption |
| 2Checkout | $5 or $10 minimum for credit card and debit card transactions. | Secure encryption |
20 Best PayPal alternative
It’s important to note that there isn’t a single “best” alternative to PayPal, as the best option depends on your specific needs and priorities. Here are some popular options to consider, each with its own strengths:
1. Venmo
Owned by PayPal, Venmo allows users to easily send and receive money between friends and contacts for free within the US (fees apply for instant transfers and certain other transactions). It’s known for its social features and ease of use, making it a popular choice for splitting bills, paying rent, or reimbursing friends.
Key Features:
- Free money transfers between friends and contacts (within the US).
- Social features for splitting bills, paying rent, or reimbursing friends.
- Mobile app for easy sending and receiving money on the go.
Fees:
Standard Fees: 1.9%, plus $0.10 of the transaction amount
2. Square
Square offers a wide range of payment processing solutions for businesses of all sizes, including point-of-sale systems, mobile payments, and online payments. It’s a good option for businesses that need to accept in-person and online payments. Individuals can also use Square Cash for person-to-person payments.
Key Features:
- Point-of-sale systems for accepting in-person payments.
- Mobile payments for accepting payments on the go.
- Online payments for accepting payments on your website.
- Square Cash for person-to-person payments (separate app).
Fees:
Standard Fees: 2.6% plus 10 cents for most in-person transactions.
3. Stripe
Stripe is a popular payment processing platform for businesses that offers a robust set of features, including fraud prevention, recurring billing, and subscriptions. It’s a good option for businesses that need a flexible and scalable payment solution.
Key features:
- Robust payment processing for online businesses.
- Fraud prevention tools.
- Recurring billing and subscription management.
- Integrations with various business platforms.
Fees:
Standard Fees: 2.9% + 30¢ for each successful card charge.
4. Google Pay
Google Pay is a mobile payment platform that allows users to pay for goods and services online and in stores using their Android phone. It’s a convenient option for making contactless payments and in-app purchases.
Key features:
- Mobile payment platform for contactless payments.
- Secure in-app purchases using your Android phone.
- Easy to set up and use with existing Google accounts.
Fees:
Standard Fees: 1.5% (minimum fee of $. 31)
5. Apple Pay
Similar to Google Pay, Apple Pay is a mobile payment platform for Apple devices that lets users make contactless payments and in-app purchases. It’s a secure and convenient option for iPhone and Apple Watch users.
Key features:
- Mobile payment platform for contactless payments on iPhone and Apple Watch.
- Secure in-app purchases using your Apple device.
- Convenient and integrated with your Apple ecosystem.
Fees:
No fees for typical transactions, but some merchants may have additional fees.
6. Zelle
Zelle is a person-to-person payment service available through many US banks. It allows users to send and receive money quickly and easily between bank accounts.
Key features:
- Fast and easy person-to-person transfers between US bank accounts.
- Linked directly to your existing bank account for convenience.
- Secure transactions through your bank’s security measures.
Fees:
Typically no fees, but some banks may impose their own charges.
7. Cash App
Cash App, owned by Square, allows users to send and receive money for free, and also offers features like investing and buying/selling Bitcoin. It’s a popular option for millennials and Gen Z users.
Key features:
- Free money transfers between friends and contacts (within the US).
- Investing features for buying and selling stocks.
- Option to buy and sell Bitcoin.
- Mobile app for easy management of your account.
Fees:
Standard transfers are free, but instant transfers and certain investment activities may incur fees.
8. Wise (formerly TransferWise)
Wise specializes in international money transfers, offering competitive exchange rates and low fees. It’s a good option for sending and receiving money overseas.
Key features:
- Specializes in international money transfers with competitive exchange rates.
- Lower fees compared to traditional banks.
- Transparent fee structure displayed upfront.
- Secure online platform for managing transfers.
Fees:
Fees vary depending on the amount transferred and the destination country.
9. Payoneer
Payoneer is a popular payment platform for freelancers and businesses that operate internationally. It offers features like virtual bank accounts, international money transfers, and payment collection services.
Key features:
- Popular payment platform for freelancers and businesses operating internationally.
- Virtual bank accounts for receiving international payments.
- International money transfer services.
- Payment collection services for businesses.
Fees:
Fees vary depending on the service used (e.g., transaction fees, currency conversion fees).
10. Skrill
Skrill is a global payment service that allows users to send and receive money online, as well as make online payments. It’s a good option for users who need a versatile payment solution for international transactions.
Key features:
- Send and receive money online globally.
- Make online payments at various merchants.
- Option to hold multiple currencies in your account.
- Prepaid debit card available (separate fees may apply).
Fees:
Fees vary depending on the transaction type (e.g., sending money, currency conversion). Free to receive money with no currency conversion.
11. HubSpot Payments
Designed for businesses already using HubSpot CRM, HubSpot Payments offers a one-stop shop for managing customer data and streamlining international payment acceptance. This integration eliminates the need for juggling separate platforms, fostering a smoother workflow.
Key features:
- Integrates with HubSpot CRM for streamlined customer data and payment management.
- Accepts various payment methods (credit cards, debit cards, ACH transfers).
- Ideal for businesses already using the HubSpot CRM platform.
Fees:
Standard Fees: 2.9% of all credit card transactions and 0.5% (capped at $10) of ACH payments
12. WePay
Especially suited for online marketplaces and platforms with international sellers, WePay simplifies payment collection and payout management. This can be crucial for businesses facilitating transactions across borders, ensuring a smooth experience for both sellers and buyers.
Key Features:
- Simplifies payment collection and payout management for online marketplaces and platforms.
- Integrates with various platforms like GoFundMe and Meetup.
- It is well-suited for businesses facilitating transactions across borders with multiple sellers.
Fees:
Standard Fees: usually ranges between 0.5% and 5% plus certain fixed fees.
13. 2CheckOut
Tailored for businesses selling digital goods and subscriptions globally, 2Checkout provides comprehensive support for multiple currencies and recurring billing. This caters specifically to the needs of businesses with international customers who might have ongoing subscriptions or require transactions in various currencies.
KeyFeatures:
- Caters to businesses selling digital goods and subscriptions globally.
- Supports multiple currencies and recurring billing.
- Ideal for businesses with international customers requiring subscriptions or various currencies.
Fees:
Standard fees: $5 or $10 minimum for credit card and debit card transactions.
14. Authorize.Net
A powerful solution for businesses of all sizes, Authorize.Net offers a comprehensive payment gateway that accepts various payment methods and integrates with numerous shopping carts and platforms. This global reach allows businesses to tap into international customer bases and accept payments seamlessly.
Key Features:
- Comprehensive payment gateway solution for businesses of all sizes.
- Accepts various payment methods and integrates with multiple platforms.
- Offers global reach for businesses to accept payments from international customers.
Fees:
Standard fees: depending on the service provider but usually ranges between 0.5% and 5% plus certain fixed fees.
15. Intuit
Ideal for businesses already using QuickBooks accounting software, Intuit streamlines the process of international invoicing and payment processing. By keeping everything within their familiar QuickBooks environment, businesses can manage their international finances efficiently.
Key Features:
- Seamless integration with QuickBooks accounting software for invoicing and payment processing.
- Streamlines international financial management for businesses using QuickBooks.
- Simplifies international transactions by keeping everything within a familiar environment.
Fees:
Standard fees: . Its per-transaction fees are: 2.9% + 25¢ for invoice transactions. 3.4% + 25¢ for keyed transactions. 2.4% + 25¢ for swiped or chipped transactions.
16. ProPay FormPay
More than just a payment processor, ProPay FormsPay offers secure solutions tailored for various industries, including those that might frequently conduct international transactions, such as associations, non-profits, and educational institutions.
Key features:
- Secure payment processing solutions tailored for various industries.
- Caters to industries frequently conducting international transactions (associations, non-profits, educational institutions).
- Offers secure solutions for businesses with international payment needs.
Fees:
standard fees: 3.00% + $0.00 per transaction + $0.25 per deposit (batched on a daily basis)
17. Dwolla
A developer-friendly platform, Dwolla empowers businesses to create customized payment solutions for international transactions. This flexibility allows businesses to integrate payment functionalities seamlessly into their applications, catering to their specific needs in the global marketplace.
Key features:
- Developer-friendly platform for creating customized payment solutions.
- Integrates payment functionalities seamlessly into applications.
- Empowers businesses to tailor international payment experiences.
Fees:
Standard fees: 0.5% per transaction
18. Amazon Pay
Leveraging the familiarity and trust of Amazon accounts, Amazon Pay allows customers to pay on your website using their existing information. This can significantly reduce checkout friction for international customers who might be hesitant to enter unfamiliar payment details.
Key features:
- Allows customers to checkout using their existing Amazon account information.
- Reduces checkout friction for international customers familiar with Amazon.
- Leverages trust and convenience of Amazon for a smoother payment experience.
Fees:
Standard Fees: Transactions fees $0.59
19. Payline
Providing payment processing solutions for various industries, Payline offers features like point-of-sale systems and mobile payments that can facilitate international transactions in retail, hospitality, and healthcare. This can be particularly useful for businesses with a physical presence or those offering mobile payment options for international customers.
Key features:
- Provides payment processing solutions for various industries (retail, hospitality, healthcare).
- Offers features like point-of-sale systems and mobile payments.
- Facilitates international transactions across diverse business types.
Fees:
usually ranges between 0.5% and 5% plus certain fixed fees.
20. Shopify Payments
If you’re already using the Shopify platform for your online store, Shopify Payments offers a seamlessly integrated solution for accepting international payments. This eliminates the need for juggling separate platforms and simplifies your e-commerce workflow.
Key Features:
- Seamless integration with Shopify platform for online stores.
- Simplifies e-commerce workflow by eliminating the need for separate payment gateways.
- Accepts international payments within the familiar Shopify environment.
Fees:
Standard fees: fee of 2.9% + $0.30 per transaction
Things to Take into Account When Choosing PayPal Alternatives
When searching for a PayPal alternative, it’s important to consider several factors to find the best fit for your needs. Here’s a breakdown of key things to keep in mind:
- Security: This is paramount. Look for a platform that uses robust security measures to protect your financial information. This includes encryption, fraud prevention tools, and secure login procedures.
- Fees: Be transparent with yourself about how you plan to use the service. Consider any transaction fees, currency conversion fees, monthly account fees, or fees for features you might need (like instant transfers).
- Ease of Use: Evaluate how user-friendly the platform is. This includes the account setup process, how easy it is to send and receive payments, and how intuitive the overall interface is.
- Features Offered: Make a list of the features that are important to you. Do you need international transactions? Mobile wallet compatibility? Bill pay options? Different platforms cater to different needs, so prioritize the features you’ll use most.
- Customer Support: Having reliable customer support is crucial in case you encounter any issues. Look for a platform that offers multiple channels for support, such as phone, email, or live chat, and has positive reviews regarding their responsiveness.
Here are some additional factors to ponder:
- Your Location: Some payment processors have limitations on where they operate. Ensure the chosen service functions in your country and supports transactions with your desired regions.
- Integration with Other Services: Do you want a platform that integrates with your existing bank account or accounting software? Compatibility can streamline your financial management.
- Business vs. Personal Use: If you’re using the platform for business purposes, consider options with features like invoicing or recurring payments.
By carefully considering these factors, you’ll be well-equipped to choose a PayPal alternative that aligns perfectly with your financial needs and preferences.
Conclusion
The world of online payments has expanded, offering a rich selection of alternatives to PayPal. Whether you prioritize ease of use for sending money to friends, robust features for your business, or competitive rates for international transfers, there’s a strong alternative waiting to be discovered.
Remember, the best fit for you depends on your specific needs. Consider factors like fees, features, security, and ease of use when making your choice. Explore the available options, compare their offerings, and find the payment solution that empowers you to manage your money seamlessly in the digital age.
