8 PayPal Alternatives for Your Online Business

This article was updated on the 18th of January, 2017, to ensure it reflects the best and most current PayPal alternatives.

When it comes to getting paid for your goods and services, one name dominates the field — PayPal. But PayPal isn’t the only game in town — there are lots of payment providers in the online space. We’ll explore how they can give you more choice, enhance your cashflow, and put money in your pocket.

But PayPal is Great, Why Do I Need an Alternative?

PayPal is dominant for a reason — it has been around the longest, it’s spent millions enhancing its brand, and it provides all the standard functions you’d expect. However, that doesn’t always make it the best choice. Here’s why:

• Not all clients can make PayPal payments. Some of your clients simply can’t, or won’t, use PayPal. They might not be in an area that PayPal accepts payments from, or their accounting systems don’t support PayPal. Perhaps they’ve had a bad experience with the platform, or want an easier way to pay.
• You don’t want all your (online payment) eggs in one basket. PayPal is notorious for blocking accounts. That means you can’t receive payments or access your funds until they decide to unblock you. The lack of cashflow could leave you vulnerable, so alternative payment options are essential.
• PayPal is best for smaller amounts. The fees you pay for PayPal can really add up, especially on larger transactions. Other payment providers may charge lower fees, so you keep costs down (and that means greater profits).
• PayPal’s international fees are really (really) high. If you dig into PayPal’s fees, you’ll see they charge a big premium for accepting international payments. Combine this with less than ideal exchange rates, and you’ll pay a hefty overhead for any international business.

Ultimately it comes down to protecting your cash flow, reducing your costs, and not leaving money on the table. So, what are the best alternatives to PayPal? Glad you asked.

Stripe

One of PayPal’s biggest competitors, Stripe offers a simple, easy user interface, full payment integration, and fast transfers into your bank account.

Advantages of Stripe

• Ease of use. Simple and easy to use and setup.
• Bank account transfer. Very fast transfer into your bank account (within two days of getting payment).
• Complete integrations. Full payment integration with most third-party services, works with over 300 other apps.
• Multiple payment options for customers. Accepts payment via multiple debit and credit cards, Bitcoin, Apple Pay and Android Pay.
• International customers. No additional international payment fees.
• Customization. Full support for custom development and integration.

Stripe Fees

In the US, Stripe charges a flat fee of 2.9% of every transaction, plus an additional 30c per transaction. There are no other fees for processing transactions.

Transferwise

Transferwise is a little different to the other services listed here, as their focus is entirely on international payments. They’re a great choice if you have lots of international customers and want to keep fees down.

Advantages of Transferwise

• Lets you accept payments from clients, anywhere in the world.
• Receive payment into your bank account within 2 - 3 days of being paid.
• Simple, fast, and easy to use.
• All transfers are based on real-time exchange rates.

Transferwise Fees

• Transferwise fees are very low, and are typically less than half of what you would pay to transfer money via your bank.
• Transferwise provides much better exchange rates than most other international payment providers, especially PayPal.

Google Wallet

As the biggest tech player in the online space, Google naturally has its own payment solution. Google Wallet is a simple, elegant, and free way to accept payments.

Advantages of Google Wallet

• Receive money from anyone. They don’t need to have the Wallet app installed, just an email address or phone number.
• Automatic transfer to your bank account. Google Wallet automatically transfers your received payments into your bank.
• Payment through the web or a mobile app. Customers can pay through Google wallet’s website, or through a mobile app on their smartphone.

Google Wallet Fees

Google Wallet does not charge any fees.

Note that you can’t use Google Wallet if you’re a registered company (e.g. a Limited or LLC entity) but you can use it if you’re a sole proprietor.

Shopify Payments

If you’re an online retailer or run an eCommerce site, Shopify’s integrated payment system can be a great way to get payments from customers. Shopify Payments comes as part of the overall Shopify eCommerce service.

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by Paul Maplesden via SitePoint