Every business owner has at least considered using PayPal, but many quickly find themselves looking for alternatives. Every business has its reasons to look for PayPal competitors. Some of the most common complaints about PayPal include:
- Not enough seller protection
- High fees cutting into the bottom line
- Delays in receiving their payments
- Lack of customisation
- Lack of integrations
- The need for a dedicated merchant account
So, for many business owners, the question has become, “What to use instead of PayPal?” There are several great alternatives, including Podium. Podium helps you get paid faster, accepts all payment types, and protects your business with features such as automatic reconciliation and fraud protection.
We’ve listed the top alternatives to PayPal below to help you make a more informed decision.
Top 10 PayPal Alternatives to Streamline Payments
There are plenty of PayPal alternatives available, but the following options stand out from the crowd. You will notice that the payment platform can include a payment processor, payment service, and payment gateway. Many service providers handle those details for you, so you don’t have to decide between Authorise.net and other gateways.
1. Podium
Podium Payments allows you to send invoices via text. All the customer needs to do is click the link and make payment. Podium’s online payment systems dramatically reduce the time it takes to collect payments, letting you get paid faster and improving the customer experience. Get paid faster and save time with Podium Payments.
As mentioned, one of the reasons that business owners wonder “What to use instead of PayPal” is the lack of customisation available. Podium addresses this by offering personalised features for your specific industry as well as your business. This high level of customisation lets Podium easily adapt to your business needs.
This is also one of the PayPal competitors with the best security features. Every transaction will be accurate and secure thanks to automatic reconciliation and fraud protection. The ability to audit communications and track sales further enhances security, as you can easily spot discrepancies.
The best alternatives to PayPal accept a variety of payment methods, but even among those, Podium stands out. Use it to accept every single payment method, including Apple Pay and Google Pay. There are even advanced payment methods available, such as financing, subscriptions, estimates, and Buy Now Pay Later.
Podium does much more than just offer PayPal alternative payment methods. This all-in-one platform also helps you gather more reviews, centralise customer data, and improve the quality of your leads. It even improves customer communication. You get all those features and capabilities for a single price, without the need to worry about integrations.
Because Podium handles communication as well as payments, you can use it to request and accept payments via the same communication channels you already use. For example, you can text or email customers payment links within existing conversations.
The only potential disadvantage of Podium is that it bundles other features with payments. As such, the price is a bit higher than other payment methods. However, that higher price includes many more features than the competition, including contact management, text marketing, website chat, and online reviews in addition to payment processing.
You can add other features, such as 1:1 onboarding and advanced segmentation if you want additional functionality. You’d be hard-pressed to find other online payment systems that offer a similar number of tools.
2. Skrill
Skrill is another popular choice among PayPal alternatives. In terms of pricing, Skrill’s merchant fees are between 2.5% and 4%. If you don’t use your account for at least 12 months, you will have to pay an additional $5.
Skriller-level accounts include some fees while True Skriller accounts waive fees. The latter may not be ideal for small businesses, though. Overall, there are no deposit fees and low fees for withdrawals. It is also free to send and receive money.
Skrill includes chargeback protection as well as advanced fraud management. The simple API and multiple integrations make it easy to use. There is even a one-tap feature that allows for repeat payments in seconds.
One of the biggest disadvantages of Skrill is that it is less widely accepted, which can make it harder to adopt. That being said, it does work internationally, including letting you accept European payments in foreign currencies. Just keep in mind that international transfers carry 4.99% fees.
3. Square
Square is another big name in retail payments and for a good reason. The easy-to-use platform lets you accept payments online or in-store. There are also useful available features such as invoices, contactless payments, point of sale, and eCommerce. Any extra features you add will be accessed via the same dashboard, letting you stay organised. Additionally, Square is modular, letting you add extra terminals if your business grows.
Square POS offers a free plan, a Plus plan for $29, or a Premium plan for $79 that small businesses are unlikely to use. Online transactions cost 2.6% + $0.30 while in-person transactions cost 2.6% + $0.10 for the top plan. For the Free and Plus plans, transactions cost 2.9% + $0.30 each.
While Square itself is free, many of its features come with additional or pay-as-you-go fees. Timecards and payroll, for example, cost extra.
The biggest disadvantage of Square is that it doesn’t work on Windows devices. This makes it somewhat limiting. Additionally, it doesn’t offer as much customisation as some businesses will want, especially in the case of complex industries.
4. Stripe
Most small business owners have at least heard of Stripe. This is a widespread service in the United States and Canada that lets you accept payments from anywhere. The fees are transparent, at 2.9% + $0.30 per transaction online. In-person transactions cost 2.7% + $0.05.
Conveniently, Stripe automatically deposits your funds into your bank account. Another convenient feature of Stripe is that the checkout process takes place on your website. That reduces customer friction compared to platforms like PayPal, which sends customers to external sites. The platform is also highly customisable.
Keep in mind that if you want to take full advantage of Stripe’s features, you will need to stick to “no code” integrations or have someone on your team with coding experience. If you don’t have a development background, it can be harder to understand and use all the features. Given that you want to take full advantage of fraud and dispute features, revenue optimisation, and third-party integrations, the need for a coding background can be somewhat frustrating.
It is also worth noting that Stripe is best for online merchants. If you also need a solution for your physical stores, you may want to choose another option.
5. Google Pay
With Google Pay Send, you attach payments to messages sent in Gmail. It is very convenient to use and lets you send money for nearly any reason, including for ecommerce business. This system works on both Android and iOS, so your customers should be able to easily use it.
There is no fee for debit transactions, compared to PayPal’s 2.9% fee. Additionally, Google Pay Send offers various business tools, such as loyalty programs.
6. Payoneer
Your options for using Payoneer are somewhat limited, as there is only a free account or one with a prepaid card. The free account can send withdrawals right into your bank account. Meanwhile, the prepaid card is only available for individuals, not businesses. Some small businesses can likely take advantage of it, but many will not be eligible. That prepaid card account costs $29.95 a month.
Even with the free Payoneer account, the system requires a $1.50 fee for any local bank transfer or ACH. One nice feature of Payoneer that not every other option offers is the Billing Service. This lets you set repeat payments. It comes with an additional fee of 1% or 3% for debit or credit card payments, respectively. You can also use Payoneer and its currency conversion features to do international transactions, as the system uses the market exchange rate. It also supports escrow payments — a unique offering.
7. Apple Pay
Apple Pay is one of the most popular online payment systems among iPhone users. More than 85% of retailers accept it, so your customers likely expect you to do so as well. That being said, you don’t necessarily need to get Apple Pay separately, as the best payment systems, like Podium, accept customer payment options from Apple Pay.
Using Apple Pay does not come with any fees. Your customers appreciate the ability to make contactless, secure payments with a credit or debit card, Apple Card, or Apple Cash.
8. QuickBooks Go Payment
Quickbooks Go Payment comes from the popular accounting software. With the help of a card reader, you can use it to accept payments from your smartphone or tablet, including both Android and Apple devices. You can also set up recurring billing and real-time alerts if a customer pays or views an invoice.
Keep in mind that pricing is different depending on whether you also use Intuit QuickBooks for your accounting needs. The numerous factors that influence fees can make the pricing structure hard to navigate. Bank transfer fees are 1%. Cards have a 2.4% + $0.25 fee on swiped transactions and 2.9% + $0.25 when invoiced. For keyed in transactions, this increases to 3.4% + $0.25.
This makes QuickBooks Payments worth considering if you already use QuickBooks. You will get the benefit of improved pricing and easier integration. However, if you don’t currently use QuickBooks or want the freedom to stop using it in the future, this payment solution is likely to be too limited for your needs.
9. Braintree
Braintree is a PayPal service, but it is still one of the PayPal alternative payment methods worth considering. There is no monthly fee for using this payment service. Accepting payments from credit or debit cards or digital wallets costs 2.59% + $0.49 per transaction. You can also use Braintree to accept Venmo payments in the United States, but this costs 3.49% + $0.49. Overall, Braintree’s pricing is competitive and transparent. There aren’t any early termination fees, minimum transaction fees, or PCI compliance fees.
Braintree also accepts payments from PayPal, Google Pay, Apple Pay, and others. This versatility gives it an advantage over Stripe, which doesn’t let you accept PayPal payments. It also offers much more customisation than Stripe.
Braintree comes with a simple checkout page that your customers will appreciate on mobile devices or computers. However, you can’t use it for brick-and-mortar stores. Additionally, using Braintree in your online store will require you to do web development.
10. Amazon Pay
If you already sell your products on Amazon, Amazon Pay may be a tempting option. Conveniently, it doesn’t have fees. It also delivers safe, secure transactions, and gives your customers confidence via brand recognition. Even better, your clients can use it to pay with credit and debit cards.
This is also one of the few solutions that let your customers purchase certain items using Alexa and, therefore, voice commands. Those Alexa transactions carry a fee of 4% + $0.30, but there aren’t other processing fees.
Importantly, Amazon Pay is only a good option if you already have an Amazon seller account. You will need to create one of those accounts to use this feature. From there, you can integrate it with Adobe Commerce, BigCommerce, and other major eCommerce and shopping cart platforms. But you can’t use it for brick-and-mortar stores.
In addition to being limited to online stores and Amazon sellers, Amazon Pay doesn’t offer custom packages or volume discounts. There is also a reserve policy that means newer accounts frequently have to wait to receive their payouts. This can be especially frustrating for small businesses with limited cash flow.
How to Choose PayPal Alternatives
With so many PayPal alternatives available, how do you choose which one to use? Keep the following considerations in mind.
1. Fees and Value
Transaction and monthly fees will likely be the first thing you consider when looking at payment solutions. Don’t forget to consider hidden fees as well, such as minimum transactions, setup fees, or fees for breaking a contract.
When comparing fees, remember that the lowest price is not always the best. A higher fee can be worth it if you get more value out of the system, such as having a more customised service or getting additional features. Podium, for example, includes payment processing capabilities as well as Reviews, Webchat, and other services for the same fee, increasing its value.
2. Integrations
Your business already uses software for various workflows, from accounting to customer support to CRM. Make sure that your chosen PayPal alternative easily integrates with the other tools your online business already uses. In addition to integrations with your current system, you may want to consider a payment solution that offers alternatives. Podium, for example, also functions as a CRM by storing information about your customers, plus it offers over 180 integrations.
3. Niche and Additional Services
You will also want to think about niche services that your customers would appreciate. For example, text-to-pay and gift card processing may be uncommon features, but these can add a great deal of convenience for your customers.
This consideration should be in addition to the expected payment methods, such as Visa, MasterCard, Discover, and debit cards.
The Best Online Payment Solution for Small Businesses
Podium is the best online payment solution for small and growing businesses. Use the card readers in your brick-and-mortar locations and the online functionality for your eCommerce site. Use Podium to accept credit cards, debit cards, Apple Pay, Google Pay, and more.
Thanks to the seamlessness of Podium’s system and features like text-to-pay, businesses have seen benefits like a 92% collection rate and 75% faster payment requests and collection. Get paid faster and save time with Podium Payments.
PayPal Alternatives FAQs
Q: Who is the biggest competitor of PayPal?
A: Some of PayPal’s biggest competitors include Square, Stripe, Payoneer, Podium, Apple Pay, Google Pay, Shopify Payments, Transferwise, and Amazon Pay.
Q: Is there a free alternative to PayPal?
A: While some PayPal alternatives don’t charge monthly fees, all business-scale solutions will at least charge transaction fees. Some personal-level solutions, such as Venmo or Google Pay, don’t charge fees but are ideal for personal use. There are always fees for business use.
Q: What is a better alternative to PayPal?
A: Podium is a better alternative to PayPal, as it offers security and customisation as well as more integrated features for better value. You may also want to consider Payoneer, Stripe, Square, Google Pay, or Apple Pay.
