Are you aware of some best alternatives to PayPal? Even if you don’t, I’ll show you some today.
PayPal currently has a total of 277 million active users, 9.3 million of whom joined the network throughout Q1 2019, based on PayPal’s most up-to-date Q1 fiscal report.
Hands down, I hate PayPal for their strict policies. I cringe for the fact they don’t operate in my country. Besides, the best way to save money is to discover and change over to cheaper money transfer and payment networks. Yes!
If you’re among the 277 million PayPal users who are tired of PayPal, then I have compiled plenty of more inexpensive online services that mimic what PayPal offers.
What Is PayPal?
PayPal is a service that enables you to send money and accept payments without showing your financial details. PayPal’s platform does this to help individuals, small businesses, and even large companies do more online invoicing, implement credit arrangements, and conduct virtual eCommerce.
Why PayPal May Not Be for You
While PayPal might be popular with many companies and people, here are several reasons why it might not necessarily be the right payment/money transfer option for you.
Limited Currency Options
PayPal supports 25 currencies globally. Some of those alternative platforms mentioned here offer transactions in much more money. PayPal may not be the right platform if you want greater flexibility.
No Integrated Option
PayPal is excellent at managing payments and receipts (a core component of any online business). Yet, it lacks a built-in integrated site and storefront features.
Sure, PayPal makes up for this by providing add-ins like Express Checkout and partners with other businesses to bridge that gap. Why complicate your enterprise model by working with just two sellers (PayPal and another vendor) when some PayPal partners competitions have an all-in-one, seamless, integrated solution?
High Fees and Intricate Fee Structure
But if you create private money transfers regularly, then PayPal might not be the most cost-effective or expeditious platform to use.
PayPal’s dominance of the online money transfer business enables it to charge top rates for its service, which might be around 2.9% of the transaction value and $0.30 per trade. Its fee arrangement also isn’t the simplest to understand.
Important Factors to Consider Before You Alternatives
Below are some essential features to look for before you proceed from PayPal to an alternative payment processor.
PayPal is a well-reputed subsidiary of online shopping giant eBay. Hence, any other PayPal alternative should have an equally well-established reputation. After all, the choice you select will have access to your most private information, such as banking and credit card information.
The level of geographic coverage that the alternative services like will determine where you can send and receive money, and how many currencies you can transact.
You need to evaluate whether you’re handling a widely-accepted alternative service before making the switch.
For instance, if you would like to send cash from your U.S. to Japan through an alternative source widely accepted across 150 nations but not in Japan, this policy is of no use to you. It would make more sense to partner with a service provider with a presence in that specific nation.
The simplicity of Fee Construction
Whether you’re looking for a PayPal alternative for personal or company use, start looking for a comfortable, easy-to-understand fee program. Complex fee structures sometimes hit you with sneaky hidden fees.
Our Picks for the Best Alternatives to PayPal
Here are 5 best PayPal alternatives you should go for. While some of them are great retail/commercial-use alternative platforms, others are good for personal money transfer and own payment arrangements.
Why not believe Amazon Pay Rather than PayPal?
This is Amazon’s integrated payment facilitator that lets you pay for third-party goods and services on other sites in 60+ currencies. Best of all, if you already have an Amazon storefront and account, you will have automatic access to Amazon Pay.
The fee for Amazon Purchase, which is between 2.9% + $0.30 to 3.9% + $0.30 for web and mobile trades, is exceptionally competitive and equal to other payment processors, including PayPal’s.
If your customers don’t typically pay with a credit card, Amazon Pay will probably also have them use a U.S. checking account. Backed by one of the internet’s most trusted names, Amazon Pay is currently available globally.
You’ve probably heard of Shopify from the context of selling products through an online and eCommerce shop. Throughout the platform’s Shopify Pay network, you could also securely pay thousands and thousands of sellers.
The platform allows you to accept and make online transfers without linking to third-party payment networks and functions as a fantastic PayPal alternative for online companies. The payment chip integrates into your shop, so you won’t need to disclose your credit information to third-party payment platforms.
By integrating Shopify Pay with your Shopify store, you also don’t pay transaction fees in your orders. You will only pay credit card transaction fees, which you would also pay if you used PayPal.
Here’s a bonus feature: Your clients can continue paying via PayPal without paying additional fees for trades.
If you frequently send and receive cash internationally via PayPal and worry about money exchange rates and transfer fees, TransferWise may be right. Also, PayPal’s money transfers and money conversions (from/to banks and PayPal and vice versa) can take up to 5 days for completion. TransferWise translations occasionally have a maximum of 2 working days. The actual transfer time is dependent upon the receiving bank.
PayPal uses rates determined by outside financial institutions when converting foreign currencies, and a conversion service fee, which typically adds a markup of 4.5percent to the last conversion rate.
That makes foreign exchange conversion trades more opaque and expensive. TransferWise uses what is known as the mid-market rate. You may independently verify all on your own from open-market data (available at Google Finance, Yahoo Finance, or Xe.com, for example ).
You’ll discover Skrill to be a great PayPal alternative if you do a lot of business in Europe (or vice versa). The eCommerce payments solution provider facilitates both personal money transfers as well as commercial buying/selling transactions online. Simple to prepare and use, Skrill has been around for nearly two decades and is a safe platform.
Formerly called Moneybookers, Skrill transformed into what it was today in 2001 and became Europe’s first FCA-regulated e-money issuer in 2002. Based on London, Skrill also has a presence across Europe and in the U.S…
Skrill Wallet holders can still send funds to friends/relatives for a 1.45% fee if it does not have a presence in a particular nation. All you need is the recipients’ email address. Contrary to PayPal, you can even utilize Skrill for currency speculation trades and buy/sell cryptocurrencies through this platform.
Should you deal with a great deal of your company on the go and you are looking for an extremely competitive cellular credit card processing platform for small companies, Square is a great alternative.
Transparent fee structures and flexible solutions make it an excellent option for small businesses and online store owners.
The Square platform may process a broad range of credit, debit, and prepaid cards, such as Visa, Mastercard, American Express, Discover, JCB, UnionPay, and many internationally-issued cards.
What looks like the best alternative to PayPal to me might be different to how you see it. Nevertheless, choose the best alternative wisely.