For many businesses, PayPal doesn’t always provide the flexibility or cost-efficiency they need from a payment processor. High chargeback fees, limited seller protection, and a checkout experience that isn’t always frictionless can discourage customers from completing their purchase.
Fortunately, the market offers dozens of reliable PayPal alternatives that make it easy and secure to send and receive payments online. But which one is the best fit for your business?
In this article, we’ll explore the main advantages and disadvantages of PayPal and present the best alternatives you should consider for your online store.
Why Consider Alternatives to PayPal?
PayPal is one of the most widely recognized payment systems worldwide. It’s fast, secure, and easy to set up, which is why it’s a preferred option for many sellers and buyers alike. Some benefits include:
- Instant transfers without long waiting times.
- Automatic currency conversion between dozens of currencies.
- No need to enter card details since accounts are linked to a bank or card, improving privacy.
- Account setup takes minutes—just an email address is required.
However, there are also some downsides:
- Sending or receiving large sums requires a verified account.
- High fees, especially for international transfers and currency exchange.
- Unlike banks, PayPal does not offer deposit protection if the company fails.
What to Look for in a Payment Processor
When choosing a payment solution, it’s essential to know which features matter most to your business. Most processors include:
- Online payment gateways or links
- Direct deposit bank transfers
- Mobile payment compatibility
- Currency conversion
- Merchant dashboards
Understanding these basics helps you evaluate which provider truly aligns with your goals and budget.
Top PayPal Alternatives for Online Businesses
We’ve researched and compiled the most relevant alternatives to PayPal, combining key highlights and pricing so you can make an informed decision.
1. Amazon Pay
Amazon Pay lets customers check out using their Amazon account, simplifying the buying process. Its one-click checkout reduces cart abandonment and improves trust through Amazon’s “A-to-Z Guarantee.”
Fees: 2.9% + $0.30 per domestic transaction.
2. Stripe
Stripe is one of the most popular PayPal competitors, powering businesses from startups to enterprises. It supports all major credit cards, mobile wallets, and 3D Secure for fraud prevention. Stripe is especially strong for global transactions and integrates seamlessly with accounting tools like QuickBooks.
Fees: 2.9% + $0.30 per transaction.
3. Square
Square is well-known for both online and in-person transactions. It offers hardware for physical sales and easy invoicing features, making it ideal for hybrid businesses.
Fees: 2.65% per card-present transaction; 2.9% + $0.30 for online sales.
4. Payoneer
Payoneer specializes in global payments, making it a favorite for freelancers and international sellers. It supports multiple currencies and even provides prepaid credit cards for ATM withdrawals. Fees are generally lower than PayPal’s, and currency conversion is free in some cases.
Fees: up to 3% for credit card payments, 1% for ACH bank debits.
5. Wise (formerly TransferWise)
Wise offers real exchange rates and low-cost international transfers, often up to 19 times cheaper than PayPal. It integrates with tools like Xero for easier accounting and is widely trusted by millions of users worldwide.
Fees: transaction fee + currency exchange commission (usually much lower than PayPal).
6. Braintree
Braintree, owned by PayPal, supports multiple payment options including credit cards, PayPal itself, and even cryptocurrencies like Bitcoin. It’s popular with international businesses and nonprofits, offering robust APIs at no extra cost.
Fees: 2.9% + $0.30 per transaction.
7. FastSpring
FastSpring specializes in localized payments, supporting 20+ currencies and 15+ languages. It automatically retries failed transactions with different banking partners, boosting success rates.
Fees: flat 8.9% per transaction, or 5.9% + $0.95.
Other Notable Options
Depending on your needs, platforms like Google Pay, Apple Pay, Authorize.Net, BlueSnap, and GoCardless may also be worth exploring. Each offers unique advantages in mobile payments, recurring billing, or international processing.
Choosing the Right Alternative
The best solution depends on your priorities:
- For international payments: Stripe, Wise, and BlueSnap are excellent choices.
- For lowest fees: Payline and PaySimple stand out with more competitive pricing.
- For security: FastSpring, Bolt, and Shopify Payments have strong fraud protection.
- For hybrid online + offline sales: Square is a solid pick.
Final Thoughts
PayPal may be the most famous online payment gateway, but it’s not always the most cost-effective or feature-rich for every business. From international money transfers to mobile-first payments, alternatives like Stripe, Amazon Pay, Payoneer, and Square offer unique advantages.
If PayPal no longer meets your needs, now is the time to test a different payment application that can reduce fees, improve customer experience, and increase security for your online store.
