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What is PayPal?
PayPal is a payment platform through which payments can be made nationally and internationally. PayPal works with a website and a phone app and enables different parties to make payments through online money transfers. PayPal users need to create an account that has to be linked to their bank account or credit card. After the confirmation of identity and proof of funds, fund transfer can be started. Payment through PayPal is accepted by many retailers all over the world.
Why PayPal alternatives?
There are a few disadvantages with PayPal which are mentioned below −
International cost is high
A PayPal account is needed for fund transfer
Scammers target the accounts
Difficult to take out funds from banks
How to choose a PayPal Alternative?
PayPal has many advantages which you need to look for the alternative of your choice. These advantages are listed below:
PayPal comes with a lot of features
Accepted all over the world
Domestic transactions are free
Easy to transfer money
No subscription fee
Top 10 PayPal Alternatives
People not satisfied with the services of PayPal can go for different alternatives which are discussed here in detail.
Alternative 1 – Wise
Wise was previously known as Transferwise and it can be used by businesses whose volume of international transactions is very high. Individuals can also use this platform as per their requirements. Wise is cheaper than PayPal and it provides a real exchange rate. No inflation is done and also there is no additional fees. The platform provides a multicurrency account and users can manage their money in 40 currencies through their debit card. They can perform batch payments, run payroll, and do a lot of things through this platform.
Account transfer is borderless
Fund transfers can be done with an affordable fee
Registration is free
Mooney transfer fee starts from 0.41 percent
Alternative 2 – Google Pay
Google Pay is a fast service for money transfer on websites, apps, and in stores. The money can be transferred with the help of debit and credit cards to which your Google Pay Account is linked. Businesses can streamline their payment process for their customers. They can also provide offers and gift cards. No fees are charged for any transaction from customers and businesses.
In-store and online payments
Easy fund transfer
Availability in 28 countries
Money transfer through debit cards is free
A fee of 2.9 percent is charged for transactions through credit cards
Alternative 3 – Stripe
Stripe is also a popular alternative to PayPal. The user interface of the app is very simple and easy to use. Users have the option to customize the app as per their requirements. The platform is being used by many large businesses like Shopify. Pay can be accepted from all over the world and money is transferred automatically to the account of the recipient. Mobile payment can also be done through the app.
It is a credit card processor
Financial reporting is real-time
Payout timings can be controlled
Fraud is prevented through machine learning
Transaction fee is 2.9 percent per transaction
Alternative 4 – Payoneer
Payoneer can be an excellent app for small and medium-sized businesses. The main focus is on freelancers, e-commerce, online advertising, and vacation rentals. Payoneer provides a debit card to its users to access their online accounts. This will help them to take out funds from ATMs all over the world. If transaction is done between Payoneer accounts, no fees is charged. The credit card fee is a little high.
Direct payments can be done
There is no transfer limit
Supports big brands like Fiverr, Wish, Airbnb, and many more
Transaction between Payoneer accounts is free
Credit card transaction fee is 3%
Echecks are charged at 1%
Alternative 5 – Shopify Payments
Shopify Payments is a platform where money transfer can be done through debit and credit cards. At any Shopify store. Sellers will find it easy to use in comparison to PayPal. Shopify Payments is connected to only Shopify stores. Shopify users have to register with Shopify Payments and enjoy their features and benefits.
3D secure checkout is supported
There is no maximum limit for fund transfer
Supports Google Pay, Apple Pay, MasterCard, Visa, and American Express
Plans per month for a basic Shopify account is $39
Transactions through credit cards are charged at 2.9 percent plus 0.30 dollars
Alternative 6 – Authorize.net
Authorize.net is not as popular as PayPal. It is a subsidiary of Visa and provides its services for free 24/7. The app provides the features of invoicing, checkout, point of sale, billing, and many more. The app has a simple user interface and it also has integration with other payment apps like Apple Pay, PayPal, Checkout, etc. The app cannot be used to send and receive payments from friends and families.
Feature of advanced fraud detection
Verification of customer information
Support different types of popular credit cards
Invoice can be made easily
Gateway fee $25
Per transaction fee 2.9% plus $0.30
Alternative 7 – Square
Square is an app that deals with point-of-sale transaction through mobile. Online payments can also be made through its website. You will have the option to accept cash, cards, gift cards, and checks. Receipts can be printed and sent to customers. Cards can be swiped without any internet connection.
Supports mobile payments
Chip cards and magstripe card support
Transaction limit on daily basis is $50,000
Point-of-sale transaction fee is 2.75%
Alternative 8 – Skrill
Skrill is similar to PayPal but comes with some more features not available in its counterpart. The app can be used easily because of its simple user interface. Card details can be stored on the app to make easy transactions while purchasing something. Funds transfer is easy through this app. You can link your bank account. Payment can be made easily by entering your email address and password.
Fund transfer is easy
Users can make online payments
38 currencies are supported
Maximum transfer limit per day is $10,000 while the minimum is $60.
Fee for sending and receiving funds is 1.45% plus $0.50
Alternative 9 – Dwolla
Dwolla is a developer-friendly platform that can be used by fast-growing businesses. Business have the option of customization the branding of the checkout experience. You can use the platform for automating your payments. The app allows 5,000 secure payments on a single request. The app is available in the US only and is not fit for international transactions.
35 currencies are supported
Easy to use
Available only in the US
Scale plan starting price is $2,000
Starting plan ranges between $0.50 and $50
Alternative 10 – Amazon Pay
Amazon Pay can be a great alternative to PayPal if customers have familiarity with Amazon. The users of Amazon have to navigate to their accounts by putting their credentials. They can use their saves=d payment details to send and receive payments. Amazon Pay can be installed on any device for the management of payments
Voice payment can be made through Alexa
Strong fraud detection features
Domestic US transaction fee is 2.9% plus $0.30.
International transaction fee is 3.9% plus $0.30
PayPal is a popular service for sending and receiving payments. Users all over the world can send and receive money through this app. There are a few disadvantages of this app which include high international cost, scammers, difficult fund withdrawal, etc. People not satisfied with this service can opt for other services like Google Pay, Amazon Pay, Stripe, etc.
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