For some businesses, payment processors like PayPal are not delivering what they need from a payment processor. The payments app has large fees for chargebacks and doesn’t provide the level of seller protection many businesses are looking for, so we have looked at PayPal alternatives.
Even worse, it doesn’t provide the most frictionless payment experience, which can be a distraction for consumers trying to make a purchase on your site.
Thankfully, there are plenty of PayPal alternatives on the market that businesses can use to send and receive payments efficiently and safely.
But which one is right for your business?
In this article, we’ll outline the top PayPal alternatives that you should take a look at and start using to accept payments from eager shoppers looking to place orders on your site.
Which Payment Processor Is Right?
Before we get into the specifics of each individual gateway, it’s important to understand what are the basic features offered by most payment processors.
Most payment processors offer:
- Online payment portals or links
- Direct deposit bank transfer
- Mobile payment compatibility
- Currency conversion
- Merchant account dashboards
As you evaluate payment platform options, consider what is most important for your website. There are so many on the market, and a lot of them offer features that overlap.
By understanding what sets each of them apart, you will be able to evaluate and choose the payment provider that’s right for your business.
What Is PayPal’s Biggest Competitor?
Physical cash is the biggest PayPal competitor, according to the company. PayPal is trying to get consumers to perform more cashless, online transactions.
Other companies with large market share like Square, Shopify Payments, and Stripe could also be considered direct competitors.
Unlike cash, however, PayPal and other payment gateways make it easy to make transactions on popular ecommerce sites and online marketplaces like eBay.
Best PayPal Alternatives in 2020
The heavy lifting and research have already been done for you. We’ve compiled a list of the best PayPal alternatives available with the key features and, most importantly, their fees.
Stripe considers itself the “payments infrastructure for the internet.” Companies of all sizes use Stripe to manage transactions and make payments with ease.
Stripe offers a lot of flexibility for business owners. They can integrate Stripe into their storefront and accept global transactions by adding only one integration to their site. Some competitors require multiple integrations for each country you want to do business in. All processing takes place on a local level and card numbers and keys are encrypted and stored separately for security.
Stripe is a comprehensive platform for every aspect of the payment process. Business owners can customize customer payment experiences, evaluate optimization opportunities, review fraud alerts, reconcile vendors, and execute reports.
Stripe offers numerous integrations, including ones with QuickBooks and NetSuite, to connect your payment method directly to your accounting ledger.
Stripe charges 2.9% + $0.30 per transaction.
Square is a payment processor that enables businesses to accept payments in multiple forms through their secure gateways.
Square enables businesses to auto-bill customers and can easily pull existing customers’ stored information for accelerated purchases.
Square has hardware options available for seamless in-person transactions. Consumers check out by transacting online, swiping or tapping a Square reader, or using a key-in payment device.
Square charges 2.65% per card transaction and 2.9% + $0.30 per online transaction.
3. Shopify Payments
Shopify Payments is the payment processing gateway for one of the world’s leading ecommerce platforms.
Shopify Payments focuses on simplicity. The company’s positioning says it all, “Go from setup to selling in one click.” It adds easy integration for Shopify users over other PayPal alternatives.
Shopify Payments works with all the commonly used payment methods and local currencies. The platform is trusted by hundreds of thousands of businesses and offers 3D secure checkouts.
If you’re already using Shopify as your ecommerce platform, you can track orders and process payments under one roof.
Shopify Payments charges $29/mo + 2.9% + $0.30 per transaction.
Is PayPal the most famous payment gateway out there? We’d say yes. Is it the best one? Probably no, as there are so many use cases and needs within the business world that a single tool would hardly address all. Thankfully, there are solid PayPal alternatives to look at.
If you’re not happy with it, now it’s the time to start considering switching from PayPal to a different payment app that might work better for your online business. In doing so, you will likely have better fees, more features, and safer transactions with your customers.