When PayPal entered the field of e-commerce, it completely changed the way online businesses conduct sales transactions. As a free method, PayPal makes it easy for consumers and business owners to shop by making virtual payments. With the click of a button, people can send money without sharing sensitive information such as credit card numbers or bank accounts. This gives people the confidence needed to shop online and makes it easier for business owners to accept universal payments. Today, more than 286 million people use PayPal for online shopping.
The characteristics of PayPal are:
- Fast: PayPal saves your information so you don't have to fill out the payment form every time.
- Easy: You can use your PayPal balance or send money from your bank account at no additional cost.
- Security: PayPal does not disclose payment account details and works hard to ensure the security of your information.
Some of its main disadvantages are:
- Contacting customer service can be difficult.
- Digital products are not covered by PayPal’s seller protection.
- Interest rates are higher than others.
- PayPal can freeze the account without prior notice.
- It may take several days to transfer money to your bank account.
The good news is that PayPal is not the only digital payment service provider on the market. Take a closer look at these alternatives and choose the one that suits you best. It makes more sense for your customers and your business.
1. Google Pay App
- Established: 2021
- Pricing: Free bank transfer and debit card activities. Credit cards charge 2.9% of the transaction amount.
Google Pay is an application that provides benefits to sellers and consumers. Users can save credit and debit card payment information to their Google Pay account to make payments quickly and easily anytime, anywhere. You can only simplify the checkout process for your customers, but you can use this service as a digital marketing tool to send mobile offers and product recommendations to your target audience. Google is a widely recognized and highly trusted company, so people can trust them to meet their online payment needs with confidence.
2. Square
- Established: 2009
- Price: The handling fee for each transaction is 2.9% plus 0.30 US dollars.
Square's digital reader was originally launched as a mobile point-of-sale transaction solution, which allows customers to pay by credit card, cash, and check. Now, it brings a lot of benefits to online transactions through virtual billing and real-time inventory management. Square even provides payroll support, allowing employees to commute and accept payments via direct deposit. A percentage of Square’s daily sales is used to repay the loan.
3. Wise
- Established: 2010 (formerly TransferWise)
- Price: For transfers from USD to EUR, Wise charges 0.6% of the transaction amount, plus USD 1.00.
This is a good choice for companies that handle a large number of international transactions. Wise provides real exchange rates, no inflation, or hidden additional costs. Your multi-currency account service comes with a debit card (available in some countries/regions), which allows you to manage funds in more than 40 currencies. You can run payroll, collect customers, batch payments, etc. Sellers can also use their own currency to charge customers to avoid confusion and provide a smooth transaction process. It's very simple. Your international clients deposit money into Wise accounts in their countries. Then Wise sent him the equivalent. Funds never cross national borders, so international transactions are extremely fast and convenient.
4. Stripe
- Established: 2010
- Price: Similar to PayPal, Stripe charges 2.9% of the transaction amount, plus $0.30.
Stripe is a popular choice for business owners who want a flexible application programming interface (API). The platform believes that the payment problem is not based on finance, but based on code. Therefore, they are easy to customize and integrate into various operating systems. Stripe allows store owners to manage transactions from anywhere in the world. They provide mobile payment, you can deposit your funds directly into your bank. Although Stripe is customizable and highly flexible, it is best suited for shopkeepers with a background in computer programming.
5. Payoneer
- Established: 2005
- Pricing: Free payment for Payoneer customers. Customers pay 3% by credit card and 1% by virtual check.
Small and medium-sized businesses benefit the most from Payoneer, which focuses on e-commerce, freelance, vacation rental, and online advertising. Debit card, so you can withdraw funds from banks or ATMs anywhere in the world. The efficiency of taxpayers is second to none. The transaction was completed in just two hours!
6. Shopify Payments
- Founded: 2013
- Price: The basic Shopify account plan starts at $29 per month. The credit card fee is 2.9% plus $0.30.
Shopify is a popular e-commerce platform with more than one million shop owners. Shopify Payments allows these sellers to bypass third-party services and directly accept all major credit and debit card payments to their stores. Sync with every Shopify order, so all your data is in one place. It is also very versatile for shop owners and consumers and can be used with social media accounts, Amazon and eBay. As an added benefit, Shopify Payments has become Shopify POS (point of sale), so sellers can use the same functionality in their physical location.
7. Authorize.net
- Established: 1996
- Pricing: Plans start at US$25 per month, plus 2.9% plus US$0.30 per transaction.
This Visa subsidiary is particularly popular with small businesses. Authorize.net is known for providing the best customer support in the industry. It’s free, 7 days a week, 24 hours a day, provided by real people. In addition to security and reliability, sellers also like many services on Authorize.net. Most importantly, Authorize.net is very intuitive, easy to use, and compatible with other payment providers such as PayPal and Apple Checkout.
8. Braintree
- Established: 2007
- Price: 2.9% plus 0.30 US dollars per transaction. Provide custom pricing options.
Although technically a PayPal service, Braintree provides many features that PayPal doesn't. Braintree is designed for big companies such as Yelp and DropBox, and its main advantage lies in its focus on providing a seamless checkout experience for higher conversion rates. The service allows sellers to accept online payments in more than 130 currencies from more than 45 countries. Although it provides standard features such as convenient customer support and recurring billing, it is also highly customizable. This means that you need some programming skills to synchronize it with your e-commerce website.
9. 2CheckOut
- Established: 2006
- Pricing-Although there are three pricing plans to meet your needs, the transaction fee starts from 2.9% plus $0.30.
Sellers who encounter a lot of international business really benefit from this service. 2CheckOut accepts 45 payment methods and 87 currencies. It is translated into 30 languages and can be used in more than 200 countries. You can customize the payment experience to meet the needs of international customers. Security has always been an issue for online payments, but this is especially true for international transactions. . They provide more than 300 fraud checks for each transaction.
10. Dwolla
- Established: 2010
- Price: Starter plans to charge 0.5% of the total transaction volume, with a minimum of US$0.50 and a maximum of US$5.00.
U.S. e-commerce business owners enjoy numerous discounts through Dwolla. Provide highly reliable service, reliable security, and a helpful customer service team. Even better, it has a customizable API, so businesses can personalize their brand at checkout. These tools are easy to use and are a great way to build a company's image and build brand awareness. Sellers who receive large amounts of wire transfers particularly benefit from Dwolla, as it specializes in ACH (Automated Clearing House) electronic bank-to-bank transfers.
