8 Best PayPal Alternatives For Online Payment
PayPal has become synonymous with online payments and this is the most widely used online payment service. However, it also has its fair share of flaws. It is not available in some countries, and its fee is quite hefty as well, especially for the international transactions. Not to mention the PayPal’s habit of blocking accounts for the least of the reasons.
Moreover, some users may not be comfortable with its buyer protection policy. If you do not like PayPal for any reason, then there are some handy alternatives available as well. Let us go over a few of these online payment services and check out the differences and why you might use one over another.
Payoneer is one of the oldest services for global payment, and now they are available in countries like India, Pakistan, and many more. Payoneer will let you receive money from the U.S. & European countries. The best part about Payoneer is the transaction fees are lower and because of this, you will end up saving a lot of money. You can even withdraw your amount in the Payoneer account using any Master Card support ATM.
Sending money from one Payoneer account to another is completely free, both sending and receiving. However, funding the Payoneer card can be a little problematic. Usually, your Payoneer card will be funded by supported companies where you work or have money saved (includes PayPal as well). These companies have their own fee for sending money to Payoneer account, 2-3% max. If you do not work for such a company, then you will have to depend on bank transfer that takes time and local bank charges will be applied (which can be huge based on your country).
As far as withdrawal fee is concerned, Payoneer charges 2% fee on all withdraws. Although your bank may charge a currency conversion fee (depends on your bank). I should also mention that Payoneer supports over 200 countries, so there is a good chance it supports your country.
One of PayPal’s biggest competitors, Stripe offers a simple, easy user interface, full payment integration, and fast transfers into your bank account.
Stripe is a rapidly growing start-up that removes the need for a merchant account or gateway. Stripe takes care of all your payment needs from storing cards, to handling subscriptions, to direct payouts to your bank account. Web developers will dig the ability to integrate a payment system into projects by using Stripe’s API.
In addition, If you are from a country which is not in operation list of Stripe, you can take advantage of Stripe Atlas program. With Stripe Atlas program, the company let you incorporate a company in the USA and also opens a bank account for you.
Stripe has integration with almost all the web stores, e-commerce store so you are more likely to find a plugin or a way to integrate Stripe with your web store or e-commerce site. You can use Stripe to accept one-time payment & even for accepting recurring payments.
Stipe accepts payment from all major debit/credit cards from 135+ countries, so you can truly go global with Stripe.
There is no setup fees or monthly fees. However, per transaction Stripe charges 2.9% + 30 cents. You can also accept payment in Bitcoins using Stripe payment processor.
3. Google Wallet
Google Wallet is the new way of sending, receiving and paying money online, sometimes with just a tap! However, it is available only in the United States as of now. You can use Google Wallet to store debit cards, credit cards gift cards and loyalty cards in a digital wallet and use it for sending and receiving money from friends or family as well as a way to pay money online.
You will be able to send money online to your friends or family using their email address or as a Gmail attachment, and you can fund the money from Google Wallet balance, bank account, debit card and/or credit cards.
It has 24*7 Fraud Monitoring and purchase protection while providing a tight integration with Google account. Unfortunately, the service availability is restricted to the US and only a few online merchants accept it.
Dwolla is very similar to PayPal in that you can do everything from paying your friends back to accepting or receiving payments at your place of business. What is unique about this service is that it is specialized in bank transfers, or Automated Clearing House (ACH) payments, for over 5 years.
Dwolla has built simple branded tools and a flexible API to access ACH quickly and do things other services cannot. Their branded capabilities like send, receive, and request funds, are free, while premium services like white-label, higher limits, and next day transfer, are available to for flat-fixed monthly fees.
Using Dwolla, it is possible for you to send money to email addresses, LinkedIn connections, Twitter followers, phone numbers and businesses that accept Dwolla. Another feature of Dwolla is Dwolla MassPay, which lets you process thousands of payments at a time.
Moreover, the processing fee is very low when compared to PayPal. Unlike PayPal, you have to pay only $0.25 for each transaction that you make, despite the fact that transaction is free if the amount is less than $10.
Currently, Dwolla is available only in the United States and you should have a valid US Mailing address & SSN to use Dwolla. Moreover, only US bank accounts can be linked to Dwolla.
Despite the fact that Dwolla is trying to launch its service in other countries, availability only in the US of the service is a noticeable problem. Except that, Dwolla is a wonderful PayPal alternative for US-based users.
Venmo works like a social payment service. Its interface is a mix of digital wallet and a social media feed. You can add comments and notes that other friendly Venmo users can browse like a social media wall. Venmo takes online payments and makes it a more welcoming system to suit you and your friends.
Venmo’s pricing structure supports this notion, too. When you send money using your Venmo balance, bank account, debit card, or a prepaid card, there are no transaction fees. Credit cards carry a standard 3% fee. However, receiving money and making purchases in other apps is always free.
Comparing Venmo and PayPal is tricky. They are both online payment services, but they cater to different markets. PayPal has evolved into a massive, global payment institution, while Venmo retains its handy, quick-payment feel. For instance, you will not pay your restaurant bill with Venmo. But you can instantly transfer your part of the bill to whoever pays. In that sense, it works alongside PayPal, rather than completely replacing it.
Skrill is a very popular alternative for PayPal and Payoneer because of their currency conversion rates. Formerly called Moneybookers, Skrill is a global service that is beginning to feature on a number of popular websites, including Skype, eBay, and numerous online betting sites (outside the US). Furthermore, funds can be easily transferred to a Skrill-branded prepaid MasterCard to make purchases almost anywhere.
The service offers competitive transaction fees. Sending money receives a 1.9% charge of the total amount. It is still quite less than PayPal and there are no dedicated rates for different countries/currencies. However, sending transactions are capped at a maximum of €20. Money can be sent to Skrill accounts or email addresses, and receiving funds is usually free (any transactions involving a fee will be clearly marked).
Unfortunately, Skrill has some clear downsides. For instance, you will incur a deposit fee of up to 7% depending on where you transfer money from. Bank, Maestro, and Swift transfers are free, whereas MasterCard and Visa incur a 1.9% fee. American Express users receive a 2.5% fee, while a Paysafecard receives a massive 7% fee. Skrill also charges a dormant account fee. If you do not use your account within 12 months, they will debit €1 per month
2Checkout is a payment processor that acts as a middleman between you (as a seller of items or services) and the payer. It accepts payments from customers using 8 different payment methods, including PayPal. And you can receive the amount using your preferred payment method, including EFT, Wire transfer and even Payoneer.
This is definitely a service meant for merchants, and not people who want to send money to their friends. You can see this in the style of their pricing, which depends on from where the payment is being received. Usually, it is anywhere between 1.9% -3.9% +45¢ per transaction. For withdrawal, 2CheckOut charges no fee if you withdraw via Payoneer, but wire transfer cost fixed $15.
If you are just looking for a way to send money to your friends or pay for a pizza, though, this is definitely not going to be an option. However, if you are running an online business that needs to accept payments, you may want to look into 2Checkout.
Implementing WePay in your site means setting up a way for customers to pay without leaving your site. WePay creates a virtual terminal in order to process payment.
Since it is an API-based technology, you must have technical knowledge in order to implement WePay. Although the service keeps simplicity in all aspects, some features of WePay are very attractive.
Just as some of the above-mentioned platforms, WePay, though it supports most of the international cards, is available for customers from US and requires to have a US SSN and billing address.
While WePay charges 2.9% + $0.30 in credit card payments, bank payments will be charged 1% + $0.30.
WePay payment API focuses exclusively on platform businesses such as Crowd-funding sites, small business software, and marketplaces. Not only does this make your site look more professional, the service seems to be more focused on the individual’s interests and not just their credit card numbers.
A few last words
Most of these services offer a better solution for international money transfer, but Skrill is a good solution if you want to exchange money in the same currency. However, if you are looking to receive money from a company then give Payoneer a try.
It should be noted that we have added these online payment services in random order, as different people have different criteria while finding the “best”; some of you might be looking for lower commissions whereas some other prefer international availability. In other words, you can choose the most appropriate PayPal alternative from the list according to your requirement.
This is not a complete list of online payment solution and we only included what we believe as the best alternative to PayPal. If you have your own best alternatives, then do please share them in the comments and do not forget to subscribe for more updates.
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