10 Best PayPal Alternatives

In 1998, electronic payments blossomed through the advent of PayPal. As it has grown, it evolved from simple payments to integration with investment accounts like Acorn and began offering savings accounts as well. It developed into a service for the unbanked, under-banked and sole proprietors of the world.

In 2020, PayPal has a plethora of competitors. They are not simply targeting its audiences, but those it does not adequately serve like the big business that needs to make mass payments. More than 35 merchant services payment processors exist now providing you with numerous choices if you want to streamline your banking or make and/or receive payments.

Which one you choose depends on your business needs. To determine which option works best for you, consider the following:

The Long Short List of Alternatives to PayPal

Some alternatives to PayPal for business work well with PayPal such as Square and Stripe which let a sole proprietor or small business integrate a credit card machine gadget to their mobile device to swipe credit cards. Others like 2Checkout and Fattmerchant serve mid-sized to large businesses with a full range of services. Standalone web wallets like Amazon Pay and Google Pay let you set up a convenient method of paying for anything you need from your cell phone. They link to PayPal, so you can use them in conjunction with it. Otherwise, you also have Adyen, Authorize.Net, BlueSnap, Braintree, Charge.com, Dwolla, FastSpring, Klarna, Merchant Services Ltd., NETELLER, Paylane, Payline, Paymate, Payoneer, Paysera, Payza, Popmoney, ProPay, QuickBooks GoPayment, Selz, Shopify Payments, Skrill, TransferWise, Venmo, ViewPost, WePay, WireCard, WorldPay and Zelle from which to choose. Of the 35 choices, here are the top ten ways to pay online.


The e-commerce online payments processor 2Checkout lets a business accept payments worldwide, host a custom checkout page, create recurring transactions, generate sales and business reports and it provides affordable merchant processing fees. It offers three fee plans which start at 3.5 percent plus $0.35 for each completed sale. Your customers can choose from eight payment types and you can process payments in 15 languages. It offers one of the most complete alternatives to PayPal for business available.


Of the PayPal alternatives, you can use Adyen as on eBay, Spotify and Etsy. They have a complicated pricing system but remain transparent about the fees. Read the fine print before using Ayden, so you know how much you will pay. This alternative for small businesses offers numerous security features.


Mid-sized and large businesses could benefit from Authorize.Net, which provides an all-in-one payment gateway with a transaction cost of 2.9 percent plus $0.30 per completed sale and a $25 per month gateway fee. The QuickBooks integration alone makes it worth choosing, but it also bundles in fraud detection, recurring transactions and an invoicing suite.


If you need a barebones payment gateway to get your business started, look at Charge.com. It provides the cheapest per transaction costs at 0.25 percent plus $0.15 per completed transaction. Unlike the other merchant processors, it does not bundle in a lot of other services. You will be able to process credit cards for next to nothing though.


Similar to Authorize.net, Fattmerchant uses a monthly subscription fee. The difference is that with Fattmerchant you pay only the flat-rate and an interchange fee. You incur the interchange fee per transaction, but do not pay as much as you would with the typical fee structure used by merchant payment processors. Its starter plan costs $99 per month, while the enterprise plan costs $199 per month. It also offers QuickBooks integration and chargeback monitoring.


Payline subsidiary Neteller only processes Visa payments at this time. If you can work with that, you can land some of the cheapest processing rates out there. You will pay 2.5 percent per completed transaction without currency exchange. If you require currency exchange, it costs another 3.99 percent.


You can save an amazing amount of money by using Payoneer which charges nothing for payments between its customers. So long as your customer or vendor also uses Payoneer in the transaction, you pay nothing. You can accept payments from non-users, too. Payoneer charges 3 percent for credit card transactions and 1 percent for e-checks. It is available in more than 200 countries. You can obtain a debit card for your account that enables you to use an ATM to withdraw funds.

QuickBooks GoPayment

QuickBooks integration is one thing, but how about just using QuickBooks? You can. Its GoPayment syncs with your QuickBooks accounts. The app lets you accept mobile payments. Transaction processing costs 2.4 percent plus $0.25 per completed sale when your customer uses a magstripe, chip or contactless payment method. The transaction cost is 3.4 percent plus $0.25 per keyed-in payments.

Shopify Payments

Use Shopify Payments in conjunction with your Shopify store to directly accept credit cards. It offers payment processing rates of 2.9 percent plus $0.30 per transaction under its basic plan which costs $29 a month. Those under the advanced plan which costs $299 see their rate drop to 2.4 percent plus $0.30 per transaction. It works with far more than just Shopify, including Facebook, Amazon, eBay and Pinterest.


Sole proprietors who want PayPal alternatives that work like PayPal should consider Venmo. You can split checks and share money with friends. You can accept online payments, but to accept credit cards in conjunction with your business, you must integrate it with Braintree or PayPal. If you just need a personal payment alternative, Venmo can work alone.
You do not have to use PayPal. It is the most widely accepted of the online payment processors, but you will find numerous alternatives to PayPal. They range from basic services like Venmo to advanced options like 2Checkout and Authorize.net. Your choice depends on your needs.

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