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The history of PayPal is one that has seen its ups and downs. Today, it remains a highly popular payment option for online transactions across the world. However, it faces stiff competition from other options such as Stripe or Square Cash among others.
PayPal is a widely used service for small businesses, but there are some alternatives that can be explored. One of the main issues with PayPal is that they have been known to occasionally freeze accounts and charge fees on top of that. If you’re looking for an alternative to PayPal, then check out these 11 options.
We looked at hundreds of options to come up with the best 11 PayPal alternatives for businesses:
- Square is the best PayPal option overall.
- Stripe is the best PayPal substitute for integrations.
- Amazon Pay is the best alternative to PayPal for extra payment options.
- The best PayPal option for an online business is Shopify (and Shop Pay).
- For restaurants, Payanywhere is the best PayPal option.
- For solopreneurs and bank-to-bank payments, Zelle is the best PayPal alternative.
- iATS is the best PayPal substitute for charities.
- Verifone is the best PayPal substitute for international online sales.
- QuickBooks: The Best B2B PayPal Alternative
- For high-volume sales, Depot for Payments is the best PayPal option.
- PaymentCloud is the best PayPal substitute for high-risk businesses.
A Quick Overview of PayPal
What We Enjoy
- There are 100 currencies in 200+ markets across the world.
- Online integrations are excellent.
- POS software by Zettle
- Transaction fees are excellent.
What Isn’t There
- Funds are being held and accounts are being blocked, according to complaints.
- It is more expensive to use a virtual terminal.
- Does not provide services to sectors with a high level of risk.
- There is no offline mode.
Pricing
- Basic POS system is available for free.
- 2.29 percent + 9 percent for card-present processing
- 3.49 percent + 9 percent per transaction for keyed-in processing
- Card readers start at $29 and go up from there.
- Terminals start at $249.
Fees for PayPal Merchants
- 3.49 percent + 49 percent invoicing
- 3.49 percent + 49 percent for PayPal Checkout
- 3.5 percent for American Express payments
- Transactions using QR codes: 1.9 percent – 2.4 percent + 49 percent
- Payments made with a credit or debit card are 2.99 percent plus 49 percent.
When Should You Use a PayPal Alternative?
PayPal is an excellent option for just about anybody because of its flexibility as a merchant account, payment gateway, and point of sale. Other services, on the other hand, may perform better at times.
- You’re a PayPal Here user: If you’re a PayPal Here user, you’ll have to switch shortly. PayPal Here is being phased out in favor of Zettle, the company’s new point-of-sale system. Zettle is an easy-to-use POS system with a robust toolkit. If you’ve been considering making a change, now is the moment. As far as POS systems go, we recommend Square and Payanywhere.
- You had your PayPal account frozen: PayPal is notorious for suspending accounts for no apparent reason, and getting a satisfying settlement may be difficult. Square, Stripe, and Payanywhere are the best options for rapid account registration, no monthly fees, and taking in-person or online payments if you need something fast—even if it’s only to tide you over until you can fix your PayPal problem. Payment Depot and PaymentCloud, on the other hand, provide conventional merchant services if you want something more reliable.
- PayPal offers a list of banned goods and sectors if you’re in a high-risk company. Look at PaymentCloud if you sell CBD products, booze, or guns, or if you work in another high-risk sector.
- PayPal is not available in your country or in the nation of your customer: PayPal does not take payments or cannot handle the currency in certain countries. We suggest 2Checkout if you need to conduct business there (Verifone).
Square
What We Enjoy
- Very simple to use
- There are many connectors and add-ons available.
- It’s ideal for both in-person and online use.
- Magstripe reader, free POS, online shop
What Isn’t There
- Fees are higher than using PayPal.
- PayPal is not accepted for in-person payments.
- The international scope is limited.
Pricing in Squares
- A Basic POS system is available for free.
- $60/month for an advanced point-of-sale system
- The processing charge for transactions with a card present: 2.6 percent + 10 percent per transaction
- The processing charge for keyed-in transactions is 3.5 percent plus 15 percent per transaction.
- Card readers start at $49 and go up from there (first one free)
- Terminals start at $299.
- For Plus plans, there is a Free trial for 30 days period.
Because it provides payment processing at a low flat cost, a free POS, and an online shop, Square is the most popular PayPal alternative. It also includes over 100 eCommerce, shipping, accounting, and other connections. Square’s POS is just as simple as PayPal’s Zettle, but it comes with additional functionality. Square also provides a free virtual terminal as well as invoices with ACH payment processing. PayPal has a benefit over Square in that it is accepted by more online retailers.
Square is on our top merchant services, best credit card processors for charities, best restaurant credit card processing, and other lists again and time again. Its POS system has been named best POS system, best salon POS system, best inventory POS system, best retail POS system, and so on. PayPal and its prior POS system, PayPal Here, have been on a number of these lists, and as we learn more about Zettle, it will most certainly replace Here.
Square is simple for amateurs and has adequate features for SMBs. Square makes it simple to get started. Simply create a free account. Then, while the card reader is being delivered, set up the free POS. You may immediately receive keyed-in payments.
Stripe
What We Enjoy
- API, SDK, and integrations are all excellent.
- A platform that is adaptable
- Support is available 24 hours a day, 7 days
What Isn’t There
- No POS
- Technical expertise is required.
- Transaction costs are higher than with PayPal.
Pricing
- Fee per month: $0
- Fee for in-person processing: 2.7 percent plus 5 percent per transaction
- Fee for processing international credit cards: 3.3 percent plus $5 per transaction
- Fee for online processing: 2.9 percent + 30 percent per transaction
- Volume discounts, multi-product discounts, and interchange plus discounts are all available.
- Fee for a chargeback: $15
- $0 for Virtual Terminal
- Card readers are $59 each.
PayPal’s ease of integration with your online sales and programs is one of its selling features. Stripe, on the other hand, is the way to go if you need even more capabilities. Its software development kit (SDK) and application programming interface (API) tools are top-notch and intended to offer you a versatile payment processor. FacilePay created the company’s point-of-sale system. It has a good rating, however, there are extra processing costs.
Stripe’s in-person processing charge is greater than PayPal’s, while Stripe’s online processing fee is cheaper. Stripe also operates in 35 countries and charges a flat cost, unlike PayPal, which charges country-specific fees. Stripe does not have as much hardware as PayPal, but it will shortly release a new card reader and POS terminal.
Stripe is simple to use, but it does need some technical knowledge. You sign up for an account in the same way you would for PayPal, however instead of installing a POS software (like Zettle), you must establish an API or checkout window.
Amazon Pay
What We Enjoy
- Checkout that is mobile-friendly
- Alexa
What Isn’t There
- The approval procedure is lengthy.
- For new merchants, funds transmission takes a lengthy time.
- There is no POS, however, there is a mobile POS.
Pricing
- Fee for online processing: 2.9 percent + 30 percent per transaction
- Per transaction, Alexa charges a processing fee of 4% + 30%.
- 3.9 percent + 30 percent (online), 5% + 30 percent (cross-border) (Alexa)
- Fee for chargeback: $20
One of the most appealing features of PayPal is that it can be added as an extra payment option to any website. With Amazon Pay, Amazon can now make the same claim. Customers may purchase your goods on your site using their Amazon accounts if you incorporate it into your online shop, social selling platform, or elsewhere. Additionally, Amazon Pay allows your consumers to place orders using Alexa. Isn’t it amazing?
Customers do not need to provide any more information like they do with PayPal. Everything is on their Amazon account. Customers will feel safer since their credit card information would not be sent to yet another website. In our comparison of the best payment gateways, Amazon Pay comes out on top.
Amazon Pay, on the other hand, falls short of PayPal since its clearance procedure takes weeks rather than days, and it lacks a mobile app or a point-of-sale system.
Apply for an account with Amazon Pay. The approval process may take up to 30 days. After you’ve been authorized, you can start integrating Amazon Pay into your websites and developing an Alexa skill.
Shopify
What We Enjoy
- Reliable
- Excellent tools for managing your internet shop and inventories.
- For in-person sales, there’s a POS app.
What Isn’t There
- Fees levied by third-party processors
- A monthly fee is charged.
- There is no offline mode.
Pricing
- $29-$299 per month for a POS system
- The processing charge for cards that are present: 2.4 percent—2.7 percent
- The processing charge for keyed-in transactions starts at 2.4 percent + 30 percent per transaction.
- Card readers start at $29 and go up from there.
- Terminals start at $179.
- Free trial for 14 days
Shopify is a fantastic alternative to PayPal if you’re searching for a more robust online business. This is one of the finest and most popular eCommerce solutions available, and it’s also on our list of the top virtual terminals, payment applications, and multichannel POS systems. You must buy Shopify’s shopping cart/POS subscription, which begins at $29 per month, unlike PayPal’s Zettle. Because it includes a virtual terminal in the form of its backend ordering system, the basic plan is virtually identical to what you’d pay with PayPal.
Shopify, like PayPal, is simple to integrate with social media sites like Facebook and multichannel sales platforms like eBay. Shopify also works with dropshipping businesses and provides significant shipping savings, which PayPal does not.
The one-click purchase button is one of PayPal’s major selling factors for ecommerce. Shopify, on the other hand, has a comparable solution called Shop Pay, which can be added to any Shopify site as a one-click checkout option. Anyone with a Shopify account (company or customer) may use Shop Pay to store their checkout information and use it across all of their Shopify sites.
Payanywhere
What We Enjoy
- Chip card reader for free
- It’s ideal for low-ticket sales.
- Scheduling of employees
What Isn’t There
- Complaints regarding fees that aren’t disclosed
- Fee for inactivity
- Processing costs are higher than those charged by PayPal.
Pricing
- 2.69 percent card-present processing charge
- Processing charge for keyed-in transactions starts at 3.49 percent plus 19 cents per transaction.
- Card readers start at $29.95. (first is free)
- Terminals are available for rent starting at $9.95 per month.
If neither Zettle nor Square appeals to you, Payanywhere is a good alternative. It is ideal for small restaurants since it has features such as open tabs, split payments, staff scheduling, and tipping. It also includes an offline mode, whereas PayPal Zettle does not, making it a better option for food trucks and food stalls. Then there’s the next-day deposit of money earned before 10 p.m., which is superior to PayPal. It doesn’t have as many internet connectors as PayPal, but the POS system is decent, and it works with certain delivery services.
Payanywhere’s free plan has a higher transaction cost than PayPal’s, but it’s really cheaper for transactions under $22 since it doesn’t charge a fixed fee. It also offers programs with cheaper rates and monthly costs. Payanywhere won a place on our list of the top credit card payment apps because of its good POS capabilities and cheap pricing.
Zelle
What We Enjoy
- For both companies and consumers, it is usually free.
- Transfers between banks are simple.
What Isn’t There
- Zelle is required for both you and your client.
- Zelle must be available at your bank (or use a debit card)
Pricing
- Your bank determines the fees, although it’s usually free.
One of the best features of PayPal is that it supports peer-to-peer transfers, which are popular among hobbyists, solopreneurs, and small companies. Zelle performs the same thing, but it has an additional benefit: it sends money straight from and to your bank account. Both you and your client must have a Zelle account, but it’s a quick and painless procedure. (Small companies may be charged to utilize this service by certain banks.)
There is no invoicing or point-of-sale. You log in, choose the recipient, specify the amount, and send. However, it’s a good alternative to ACH transfers (which PayPal can’t handle) and e-checks (for which PayPal charges a fee).
Zelle isn’t designed to be a high-volume payment processor, but it’ll do if you need a free and simple method to accept or transfer a few payments.
iATS
What We Enjoy
- There are no charges for chargebacks.
- Accepts payments through ACH (PayPal does not)
- It’s compatible with donation-related software.
What Isn’t There
- A contract may be demanded.
- There is no pricing information available.
Pricing
- Pricing isn’t listed on the company’s website.
- 2.49 percent to 3.2 percent, according to reports.
- A monthly fee is charged.
PayPal provides substantial savings to charities that use its platform. Look at iATS if you need a different choice or one that is more focused on the requirements of charities. This merchant service only works with charity organizations and may accept contributions by credit card, ACH, and other ways from all around the globe. Brickwork by iATS, a Salesforce connection, will benefit larger charities, but it also connects with hundreds of other apps, many of which are charity-focused.
Overall, it ranked well among the top nonprofit payment processors on our list. iATS, on the other hand, does not have its own POS; it does, however, allow you to construct online forms that you can embed in your website or use as a standalone solution, and you can utilize its Aura program to create a shopping cart. It recently introduced hosted sites, pre-populated forms, and the option to charge processing fees to contributors.
Unfortunately, unlike PayPal, iATS does not publish its price publicly. However, prices ranging from 2.49 percent to 3.2 percent, including a monthly fee, were discovered. This is more expensive than PayPal. It may also have a yearly contract, unlike PayPal. Go to iATS and fill out the contact form to get started.
2Checkout (Verifone)
What We Enjoy
- There are 45 payment options available.
- Assumes the role of worldwide record merchant (highest plan only)
- There are 120 eCommerce connections available.
What Isn’t There
- Transaction costs are higher than with PayPal.
- There is no POS software or app that can be used in person.
Pricing
- Fee per month: $0
- Fee for processing: 3.5 percent + 35 to 6 percent + 60 percent
- Fees for chargebacks vary.
- Third-party hardware is available.
If you want to sell internationally but don’t want to use PayPal, 2Checkout is a good option. There’s a lot to like about this worldwide internet payment processor: 120 ecommerce connections, 45 payment methods, 100 currencies, and 200+ countries are just a few of the features available. Overall, its reach is greater than PayPal’s, earning it a place on our list of the top payment gateways. Add in the fact that it may serve as your merchant of record, processing international VAT and sales taxes on your behalf, which PayPal does not.
2Checkout, like PayPal, allows customers to create their own accounts. 2Checkout’s myAccount function, similar to PayPal’s account feature, allows users to enter payment and contact information as well as see past transactions. One disadvantage is that it pays out every week rather than every two days like PayPal.
There is no monthly charge, however, the processing fee is greater than PayPal’s at 3.5 percent + 35 cents to 6 percent + 60 cents. You may join up for one of its programs for free or inquire about bespoke pricing by contacting sales. After that, you may begin integrating 2Checkout with your eCommerce platform.
QuickBooks Payments
What We Enjoy
- Invoicing is simple.
- QuickBooks is fully integrated.
- Mobile Point-of-Sale
What Isn’t There
- QuickBooks is required.
- There is no online shop.
- Customer service is lacking.
Pricing
- $15–$150 each month (for QuickBooks)
- Processing charge in person: 2.4 percent plus $25 per transaction
- The processing charge for keyed-in transactions starts at 3.4 percent + 25 cents per transaction.
- Discounted prices for large orders
- Card readers start at $49 and go up from there.
- Terminals start at $119 for a stand (iPad not included)
- 30-day free trial
PayPal provides free invoicing and interacts with QuickBooks, but QuickBooks is a great option if you are a freelancer who sells things and works under contract, or if you conduct B2B transactions that mainly require bills. Payments has a monthly cost since it requires you to be a QuickBooks user. You do, however, obtain accounting software that connects almost as well as PayPal. The transaction costs are comparable to those charged by PayPal, and if you handle more than $7,500 per month, you may qualify for a reduction of up to 40% each transaction.
QuickBooks also allows you to deposit funds into several accounts. You may schedule payments and get notifications when an invoice is paid. It also features a well-received smartphone app for selling items in person. Overall, QuickBooks Payments is one of our favorite credit card payment applications, as well as one of our top B2B solutions.
Payment Depot
What We Enjoy
- Fees for interchange-plus
- POS, virtual terminal and mobile app are all included.
- Support is available 24 hours a day, 7 days a week.
What Isn’t There
- A monthly fee is charged.
- If you handle less than $10,000 each month, this isn’t a good thing.
- US-only
Pricing
- Fees range from $49 to $199 per month.
- Interchange + 5 – Interchange + 15 Transaction Fee
- Fee for a chargeback: $15
- Money-back guarantee for 90 days
If you make frequent or large-ticket sales, PayPal’s fees may quickly mount up. Payment Depot may save you money if you process more than $10,000 in credit card transactions each month. It comes in first place on our list of the most affordable merchant services. Its price is different from PayPal’s in that it requires a monthly membership fee yet offers cheap interchange-plus rates.
Payment Depot provides you with a free virtual terminal as well as free POS terminals in certain instances. It offers a mobile reader for $99. It utilizes the SwipeSimple software for mobile sales. SwipeSimple is less feature-rich than PayPal Zettle, but it allows you to accept payments, compute taxes and discounts, and manage inventory. Both Android and iOS users have given it high marks.
Payment Depot is only accessible to merchants in the United States, and you must apply and be approved before you can join. You may speak with a sales representative or apply online. Make sure you have all of your company information on hand, including your EIN/federal tax ID number and a voided check. It typically takes 24 hours for approval to be granted.
Payment Cloud
What We Enjoy
- Deals with medium- to high-risk situations.
- There have been few complaints about money being frozen.
- Customer service is highly appreciated.
What Isn’t There
- Fees aren’t revealed.
- There is no mobile app available.
- There is no point-of-sale system.
Pricing
- PaymentCloud sets monthly costs and transaction rates on a case-by-case basis, thus fees aren’t published.
- Hardware costs vary—PaymentCloud provides a variety of systems from a variety of vendors.
- PaymentCloud works with a variety of POS and virtual terminals, thus software costs vary.
- The chargeback cost is $25.
PayPal isn’t known for supporting high-risk companies and has a history of deleting accounts or blocking money for questionable transactions. PaymentCloud is a fantastic option if you’re in a medium- or high-risk company like CBD sales, booze stores, or pawn shops. It’s our top pick for high-risk merchant accounts and connects with online shops and POS software, but it lacks a mobile app or POS of its own, unlike PayPal. Its Paysley app allows you to submit invoices.
It does, however, offer superior security, chargeback protection, and customer service. There are rarely complaints regarding closed accounts or retained money, despite the sectors it services. This may be due to the company’s meticulous approval procedure. It may take several days for your application to be accepted after you submit it. To get started, fill out the form on the website.
Conclusion
PayPal is a well-known payment processor that may be used for international, online and even in-person transactions. However, it is not your only choice, and it may not even be your best one in certain circumstances. The payment processors mentioned below share certain capabilities with PayPal, but they also have their unique advantages. Any of these may be used as a substitute for PayPal or in combination with it.
Because of its versatility, Square is our pick for the best PayPal alternative overall. With a magstripe reader and free mobile POS, it may be used by solopreneurs and hobbyists, but it also has capabilities for operating a busy shop, restaurant, or salon with an online store. To get started, go to Square and sign up for a free account.
Frequently Asked Questions
Is Google pay a good alternative to PayPal?
Though Google Pay is not the only alternative to PayPal, it does offer similar services. If you are looking for an easy-to-use option that offers many other options like money transfers and card payments, then this would be a good choice.
