Best PayPal Alternatives for Business

Payment gateway integration is the key basis for the functioning of global e-commerce. It allows businesses to accept payments from customers for online sales, and for others, it is a convenient way to pay for purchases and transfer money anywhere in the world.

If you're wondering what does paypal do, it primarily provides online transfer services and sends digital payments. PayPal is the leader of the online payment industry and the most popular payment system for online businesses. This name has a solid reputation in the global financial environment and adherents worldwide. However, one key reason the service is still so popular is that we have just gotten used to it. However, younger and more flexible competitors continue to improve on what PayPal created initially. There are several payment services like PayPal for your online business that offer better terms of use and more convenience.

There are a few main reasons why companies might want to consider other services than PayPal:

• Lower fees or different fee structures to save on costs.
• Advanced tools to further streamline operations.
• Enhanced and more accessible customer service options to resolve issues faster and more efficiently.
• Stronger fraud prevention measures for greater peace of mind.
• Top-of-the-line integration capabilities and software to boost operational efficiency.
• Higher customization level to align with unique business processes and branding.

In this article, you’ll discover why you shouldn’t rely solely on PayPal to accept and process payments today and find out what the best PayPal alternative for business is.

FACTORS TO CONSIDER WHEN CHOOSING A PAYPAL ALTERNATIVE

Whatever the reason for choosing an alternative payment system for a particular business case, there are some factors to consider when picking payment apps similar to PayPal:

• Safety. The payment system must comply with minimum security standards due to the integrated 3D Secure protocol, as well as comply with the PCI DSS standard.
• Cost and terms of payment. The best cost-effective solutions offer affordable transaction rates, low additional fees, and, most importantly, transparent pricing. They also provide flexible payment options that vary by company.
• Fees. A fee is usually charged for each transaction and depends on the selected service package, currency, the need for conversion, and other parameters. Make sure there are no hidden fees.
• Support for various currencies. A business that operates in different countries needs a service that supports payments in multiple currencies.
• Payment processing requirements. Determine how you need to accept payments from customers and check out providers’ offerings to compare them to your needs.
• Additional features. Explore the functionality that is offered in addition to direct payment processing. For example, it can be inventory management, invoicing, rewards systems, CRM tools, and readers for free.
• Ease of integration with the site. Make sure that the payment gateway is easy to connect to the website and that the customer support is good and quick to resolve any issues.
• Relevance to customers. Some international payment systems work worldwide, while others are relevant only to certain countries. Ensure the provider you choose serves the region where your target audience is.
• The convenience of payment. A simple and intuitive checkout page interface is an important conversion factor.
• Withdrawal deadlines. Typically, the standard turnaround time is five to seven business days, but some services may take longer.

So, what could you use instead of PayPal?

SQUARE

Square is a full-service POS terminal with integrated payment processing. It is one of the best alternatives to PayPal for businesses that combines online and offline activities. It is the leading online payment environment and all-in-one payment solution.

Ecommerce customers choose Square payment system because of its wide functionality. It offers:

• Secure payment processing;
• Multipurpose POS system;
• Peer-to-peer payment service;
• E-commerce platform;
• Other advanced tools.

Additional features include:

• Invoicing;
• Marketing tools;
• Social media integration;
• Loyalty programs;
• Standard banking options, and more.

Square comes with a lot of free hardware. It is a versatile, cheap, secure, and efficient payment solution for companies of all sizes, shapes, and industries. Other benefits of Square include affordability and simplicity (it is easy to set up and easy to use), complexity and flexibility (it supports third-party integrations and offers advanced functionality), and a high level of security (it features progressive safety measures).

Square is transparent about transaction fees and sticks to standard rates that are fairly affordable. It offers simple and flexible pricing by providing multiple tariff plans: Free (basic features), Plus (advanced features), and Premium (customized offer). By default, Square doesn’t charge any monthly fees, you only pay per transaction: 2.6% + 10¢ per in-person transaction, 2.9% + 30¢ per online transaction, 3.5% + 15¢ per transaction (manually entered card details, 3.3% + 30¢ per transaction (invoices).

So, if you’re wondering what are the alternatives to PayPal, you can consider Square, especially if your company accepts online and offline payments. In the initial stages of your business, you can use this payment system for free and then expand products, tools, and services as needed.

Stripe

Stripe is a highly secure international payment gateway like PayPal with a wide range of options and advanced features, designed primarily for small businesses and e-commerce. This service is one of the most popular alternatives to PayPal and one of the best payment systems for online businesses in the world.

Stripe’s functionality includes connecting a payment gateway, making international payments, generating invoices, setting up a payment in a subscription format, a system for resolving conflicts between an entrepreneur and a client, and more. The capabilities of the payment system exceed industry security standards and allow you to efficiently conduct online payments, process recurring transactions, and provide other subscription services.

Perhaps the main reason why Stripe online payment is considered one of the best alternatives to PayPal for business is its flexibility—with some development skills, you can easily customize Stripe to suit your business needs. With Stripe, you get global market coverage, clear pricing, a wide range of reporting tools, and much more. Among the key features and capabilities are Checkout, Payment links, Invoicing, Billing, and Radar.

The main advantages of Stripe are:

• Stable acceptance of international payments (support for more than 135 currencies);
• Instant access to funds;
• Generation of payment links;
• Checkout templates and a single dashboard;
• Dispute management;
• Advanced developer options;
• Data security;
• Professional customer support.

Stripe doesn’t charge a monthly service fee, signing up for an account is free, and the transaction fees here are similar to PayPal’s. The basic rate includes a fee of 2.9% + 30¢ per transaction, and an additional fee of 1% applies to international money transfers and currency conversions. A personalized plan is also available for custom business models or large enterprises.

SHOPIFY PAYMENTS

Shopify Payments is another notable name among PayPal alternatives for businesses in ecommerce. This is a payment gateway for online stores developed on the Shopify platform that allows companies to accept and process payments from customers from all over the world. Shopify Payments allows you to accept international payments from bank cards and electronic wallets in various currencies, withdraw money, and track transactions in your account.

This payment system is especially advantageous for Shopify store owners. Shopify Payments allows you to accept card payments in your online store without installing a third-party app. It is easy to set up, and most importantly, it eliminates the need to redirect customers to other platforms, providing an advanced user experience and increasing the overall conversion rate at checkout. When you choose Shopify Payments, you avoid third-party transaction fees for orders processed through Shopify Payments, Shop Pay, Shop Pay Installments, and PayPal Express. Additionally, no transaction fees are incurred for manual payment methods like cash, cash on delivery (COD), and bank transfers. But you incur a Shopify Payments fee, billed in your payout currency, which encompasses the cost of processing the payment.

Among the key advantages of Shopify Payments as a payment system are:

• Easy system setup;
• Reduced commission;
• Full integration;
• Secure transactions;
• Advanced protection for the seller.

The main disadvantages include a limited number of supported countries, high chargeback fees, and strict usage rules.

WISE

Wise is definitely one of the best alternatives to PayPal for international payments for individuals and small and medium-sized businesses. This payment system provides an excellent money transfer service, especially for those who regularly deal with overseas transactions. It costs a lot less than PayPal and works twice as fast.

Wise has established itself in the field of international transfers but also provides an international bank account for e-commerce, allowing businesses to accept cross-border payments for services and goods.

Wise offers the best features, including one of the fastest transfer speeds, API access to create and connect custom apps, the lowest transfer fees for individual users, free international virtual bank accounts for accepting payments, accounting integration, and automated invoicing. Another benefit is transparency at every stage—all rates, fees, and charges are visible in advance.

With Wise, you significantly save on currency conversions and increase the overall transaction speed. It offers an average exchange rate—depending on the current purchase and sale prices, the transfer amount will vary.

By using Wise for your business, you simplify the payment process for foreign customers and receive lower international transaction fees compared to similar solutions such as PayPal.

CONCLUSION

Despite the fact that PayPal remains the undisputed leader among the players in the payment systems market, it is far from the only worthy option. You might want to look for other payment systems like PayPal that can prove to be more efficient and better than PayPal in some aspects. Choosing the right PayPal alternative for your business depends on your specific needs, whether you prioritize ease of use, customization, international reach, or a robust feature set. Evaluate these options carefully to find the best fit for your business requirements.

If you’re looking for PayPal alternatives for a small business, Stripe can help you scale and easily streamline your international payments experience. Square is particularly optimal and profitable for low-volume traders and is unlikely to be suitable for high-risk sellers. Shopify Payments is the best solution for online stores and an absolute must-have for those who use Shopify as their e-commerce platform. Use Wise for your business to receive money from customers around the world with lower fees and faster speeds.