PayPal pioneered digital wallets and mobile payments, boasting over 400 million active users to date. Consumers prefer PayPal for its wide range of payment options, including cards, PayPal balance, and cryptocurrency. Your business can benefit from its ease of setup, instant access to funds, and built-in business tools.
However, other providers can offer similar services at better rates and with more functionalities. Consider the following best PayPal alternatives below:
- Best PayPal alternative for ecommerce payment integrations: Stripe
- Best PayPal alternative for mobile POS services: Square
- Best PayPal alternative for ecommerce platforms: Shopify
- Best PayPal alternative for bank-to-bank payments: Zelle
- Best PayPal alternative for accounting tools: QuickBooks
- Best PayPal alternative for large-volume transactions: Payment Depot
- Best PayPal alternative for B2B transactions: Helcim
- Best PayPal alternative for remote freelancers: Payoneer
- Best PayPal alternative for cryptocurrency payments: BitPay
- Best PayPal alternative for high-risk merchants: PaymentCloud
Featured Partners
PayPal alternative comparison
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| Payment Depot | |||||
| Helcim | |||||
| Payoneer | |||||
| BitPay | |||||
| PaymentCloud |
Stripe: Best PayPal alternative for ecommerce payment integrations
Stripe is a leading payment processing service for small businesses, offering both simple and highly customizable online payment solutions. As a payment facilitator, it does not require businesses to apply for a merchant account, making signup fast and setup easy with a step-by-step guide. Stripe also offers custom interchange rates and volume discounts for growing businesses.
Why I chose Stripe
Both Stripe and PayPal offer seamless checkout page integrations on e-commerce websites. They support a wide range of payment methods, including multicurrency for international payments. However, Stripe is the better choice if you prefer free and advanced customization features. The system is developer-friendly and provides extensive API and SDK documentation for businesses wanting a tailored checkout process.
Also see: 5 Online payment methods for small business
Pricing:
- Monthly fee: $0
- Card-present transaction fee: 2.7% + 5 cents
- Card-not-present transaction fee: 2.9% + 30 cents
- Keyed-in transaction fee: 3.4% plus 30 cents
- ACH: 0.8%, $5 cap
- Invoicing: + 0.4% to 0.5%
- Instant funding: 1.5% (for instant payouts)
- Chargeback fee: $15
- Card readers: $59 to $349
How Stripe compares to PayPal
- Stripe offers simple flat-rate and custom interchange fees, while PayPal’s rates are more complex and it only offers custom rates for enterprise-level businesses.
- Both Stripe and PayPal can process international payments, but Stripe offers more advanced customization features.
- Stripe can be adopted as a primary payment processor for many e-commerce and SaaS platforms, while PayPal can function as an additional payment option alongside any other processor.
- PayPal offers a full-featured virtual terminal, while Stripe’s is limited.
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Square: Best PayPal alternative for mobile POS services
Square started as a mobile payment processing service and eventually evolved into one of the leading all-in-one POS software providers in the market. Users like Square for its small-business-friendly terms, which include a feature-rich free plan. Like PayPal, Square offers a free merchant account, a mobile-first payment platform, pay-as-you-go contracts, and free invoicing tools.
Why I chose Square
Square is the best alternative to PayPal if you are looking for a free business platform that goes beyond simple payment processing. While both offer free POS software, Square’s is built into each user account during signup; PayPal’s POS is optional. Square also provides industry-specific POS features in the free plan that you won’t find in PayPal.
Also see: Top 6 mobile payment methods to consider for your business
Pricing
- Monthly fee: $0+
- In-person fee: 2.6% + 10 cents per transaction
- Online fee: 2.9% + 30 cents per transaction
- Keyed-in fee: 3.5% + 15 cents per transaction
- Instant funding: 1.75%
- Chargeback fee: Waived up to $250/month
- Card readers: From $59
How Square compares to PayPal
- Both Square and PayPal are mobile-based platforms, but Square consistently receives higher ratings from iOS and Android users.
- Unlike PayPal, Square offers a range of free, scalable POS software.
- You can only use Square Payments within the Square platform, while PayPal integrates with most POS and e-commerce websites.
- Both Square and PayPal provide a free merchant account, but PayPal charges an additional monthly fee for using its virtual terminal.
- Square and PayPal offer instant deposit options for a fee, but PayPal can provide faster access to funds via PayPal balance.
- PayPal supports more currencies for international payments than Square.
Pros and cons
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Shopify: Best PayPal alternative for ecommerce platforms
Shopify is a leading name in e-commerce platforms currently hosting more than 5 million online stores. Businesses like Shopify for its strong omnichannel features, supported by multichannel sales tools that include a mobile-based POS app, social selling, and marketplace integrations.
Why I chose Shopify
If Square is the best PayPal alternative for in-person sellers, Shopify is the top alternative for e-commerce businesses. Shopify not only supports advanced omnichannel functionalities but also offers native shipping and delivery options and integrates with dropshipping platforms. Like PayPal, Shopify provides a one-click buy button feature (Shop Pay) that you can add to any Shopify website.
Also see: The 4 best ecommerce payment solutions
Pricing
- POS plans:
- Starter plan: $5/month
- Retail plan: $89/month
- Ecommerce plan (with POS):
- Basic: $29/month billed annually ($39 monthly)
- Shopify: $79/month billed annually ($105 monthly)
- Advanced: $299/month billed annually ($399 monthly)
- In-person transactions:
- Starter plan: 5%
- Retail plan: 2.6% + 10 cents
- Online transactions:
- Starter plan: 5% + 30 cents
- Retail plan: 2.9% + 30 cents
- Card reader: From $49
- Chargeback fee: $15
How Shopify compares to PayPal
- Both Shopify and PayPal provide e-commerce platforms, but Shopify’s features are more advanced.
- Both Shopify and PayPal’s online stores can integrate with other POS software. However, PayPal’s website is not compatible with PayPal’s POS (PayPal Zettle).
- Like Square, Shopify’s payment processing service works only on Shopify e-commerce sites, while PayPal’s checkout tools can be added to any e-commerce platform and work alongside other payment services.
- Both Shopify and PayPal offer social selling tools and one-click online payment solutions.
- Unlike Shopify, PayPal’s online store does not charge a monthly fee, but the additional fees apply for using its payment gateway.
Pros and cons
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Zelle: Best PayPal alternative for bank-to-bank payments
Zelle is a peer-to-peer mobile payment platform that Bank of America, JPMorgan Chase, and Wells Fargo developed in 2011. Early Warning Services acquired and relaunched it in 2017. Like PayPal, Zelle initially targeted consumers but has since added payment processing features for businesses. Any business banking with Zelle partner banks and credit unions can set up a business account.
Why I chose Zelle
I chose Zelle because it is free to use and offers nearly instant payment transfers straight to your bank. This makes it the ideal PayPal alternative if your business depends heavily on cash flow and wants to avoid PayPal’s transaction fees. Using Zelle and accepting payments is free — there are no monthly fees, transaction fees, or bank deposit fees. However, please note that you can only receive payments if your customer’s bank is also compatible with Zelle.
Pricing:
- Monthly fee: $0
- Bank transfer fee: $0
- ACH/eCheck fee: $0
- Chargeback fee: $0
- Card reader: N/A
How Zelle compares to PayPal
- Both PayPal and Zelle support peer-to-peer payments and transactions via QR codes.
- Both platforms offer business accounts, but unlike PayPal, Zelle does not charge monthly or transaction fees. However, Zelle cannot process card transactions.
- PayPal offers instant fund access via PayPal balance, while Zelle provides fast, nearly instant bank deposits.
- Unlike PayPal, Zelle is absolutely free, but it only works if your customer banks with a Zelle banking partner.
Pros and cons
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QuickBooks: Best PayPal alternative for accounting tools
QuickBooks is a popular accounting software provider that also offers a payment processing solution with inventory management, invoicing, billing, and mobile payment features. Combined with multi-state tax management, tax return reporting tools, and a wide range of integration options, it is widely used by small businesses in the U.S.
Why I chose QuickBooks
While many new providers offer accounting tools with payment processing, QuickBooks remains the most popular and versatile option. Businesses using PayPal can integrate QuickBooks. However, if your growing sales include project management and manual payment processing, you get better value by avoiding monthly fees for these features.
Pricing:
- Merchant account fee: $0
- Accounting platform fee:
- Simple start: $35
- Essentials: $65
- Plus: $99
- Advanced: $235
- Transaction fees:
- In-person (via mobile app): 2.5%
- Online: 2.99%
- Keyed-in: 3.5%
- ACH: 1%
- Chargeback fee: $25
How QuickBooks compares to PayPal:
- Both QuickBooks and PayPal provide free merchant accounts.
- QuickBooks Payments is exclusive to QuickBooks users, while PayPal integrates with most online and POS platforms.
- QuickBooks charges a monthly fee for its accounting software but does not add extra costs for billing services (recurring transactions) or its virtual terminal, unlike PayPal.
- Like PayPal, QuickBooks offers a mobile card reader and payment app.
- Both QuickBooks and PayPal support a wide range of integrations.
Pros and cons
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Payment Depot: Best PayPal alternative for large-volume transactions
Payment Depot is a traditional merchant account service provider that offers custom interchange-plus rates, making it ideal for high-volume transactions. The custom fees include free access to all the processing services your business needs. Payment Depot also offers a full range of payment processing methods and integration options for popular POS and online platforms.
Why I chose Payment Depot
PayPal charges flat-rate payment processing fees, and only enterprise-level businesses qualify for discounted rates. Payment Depot serves as an alternative for high-volume businesses seeking more competitive fees. Like PayPal, it is compatible with most e-commerce and POS solutions. However, Payment Depot provides the added advantage of a stable, traditional merchant account.
Pricing:
- Monthly fee: $0
- Transaction fee: Custom interchange-plus
- Chargeback fee: $25
How Payment Depot compares to PayPal
- Both PayPal and Payment Depot offer free merchant accounts, but the traditional merchant account with Payment Depot is more stable.
- Both services feature short-term contracts; however, Payment Depot delivers more competitive transaction rates than PayPal.
- Unlike PayPal, Payment Depot does not charge extra for virtual terminals or recurring billing tools.
- Payment Depot does not support international payment processing, whereas PayPal does.
- PayPal offers instant access to funds, while Payment Depot charges a fee for next-day funding.
Pros and cons
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Helcim: Best PayPal alternative for B2B transactions
Helcim is another traditional merchant services account provider offering interchange-plus pricing. However unlike Payment Depot, Helcim features automated volume discounts based on sales volume. Like PayPal, Helcim provides a mobile-based proprietary POS software, which is also available as a built-in feature on a standalone handheld POS device. It also supports a wide range of payment services, including invoicing, billing management, and payment gateway.
Why I chose Helcim
While both Payment Depot and Helcim offer excellent value for established businesses over PayPal. However, B2Bs can benefit the most from Helcim’s automated fee optimization functionalities. Helcim can automatically detect B2B transactions and pull the necessary information to ensure businesses qualify for discounted B2B rates. Additionally, surcharging and convenience fees are available without requiring extra application.
Pricing:
- Monthly fee: $0
- Card-present transaction fee: Interchange plus 0.15% + 6 cents to 0.4% + 8 cents
- Card-not-present transaction fee: Interchange plus 0.15% + 15 cents to 0.5% + 25 cents
- Automated clearing house (ACH) payments: 0.5% + 25 cents
- Chargeback fee: $15, refundable
How Helcim compares to PayPal
- Both Helcim and PayPal offer POS software and stand alone handheld POS devices.
- Neither charges a monthly merchant account fee, but PayPal charges extra for its recurring billing and virtual terminal features.
- PayPal is easier to set up because it does not require a merchant account application process unlike Helcim.
- However, Helcim’s traditional merchant account is more stable than PayPal’s.
- Unlike PayPal, Helcim offers interchange plus rates regardless of your transaction volume.
Pros and cons
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Payoneer: Best PayPal alternative for remote freelancers
Payoneer is an online payment platform popular with freelancers for its fast online money transfers and affordable fees. Like Zelle, it can process same-day bank transfers. However, unlike Zelle, Payoneer can accept payments both from local and international senders. Payoneer also supports invoicing, card payments, and other digital payment methods.
Why I chose Payoneer
PayPal and Payoneer share the ability to provide fast access to funds. Like PayPal, Payoneer gives you a balance on the app that you can immediately use. While Payoneer is not as easily integrated with POS and e-commerce platforms as PayPal, it is popular in freelancer marketplaces like Fiverr and Upwork. You pay little to no processing fees when accepting payments from another Payoneer account or directly to your bank.
Pricing:
- Monthly fee: $0
- Transaction fees:
- Payoneer-to-Payoneer: Free
- Local bank transfers (to your Payoneer): 0-1%
- Bank-to-bank: Free
- ACH/echeck: 0-1%
- Credit/debit card: 3.2% + 49 cents
- PayPal: 3.99% + 49 cents
- Chargeback fees: $25
- Inactivity fee: $29.95/month after 12 months of inactivity
- Card readers: N/A
How Payoneer compares to PayPal
- Both PayPal and Payoneer offer fast access to funds via their respective balances.
- Both also support international payments. However, Payoneer charges little to no processing fees for transfers between Payoneer accounts and bank transfers.
- PayPal and Payoneer both support multicurrency and offer invoicing features.
- Payoneer integrates with freelancer marketplaces, while PayPal can work on most e-commerce platforms.
Pros and cons
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BitPay: Best PayPal alternative for cryptocurrency payments
BitPay is primarily a cryptocurrency trading platform that also offers a merchant payment gateway solution. It acts as a cryptocurrency wallet, allowing businesses to accept payments in their preferred cryptocurrency or convert them immediately to a default fiat currency of their choice. BitPay operates in 229 countries and supports eight fiat and 16 types of cryptocurrencies, including Bitcoin and Ethereum.
Why I chose BitPay
PayPal recently introduced a crypto wallet functionality that lets users keep, buy/sell, and accept cryptocurrency as a form of payment. BitPay, one of the first crypto wallets on the market, has evolved into a versatile platform similar to PayPal. BitPay offers payment gateway features, such as creating QR codes, payment buttons, invoicing, and recurring billing tools. It also integrates with QuickBooks and popular ecommerce platforms like Shopify and WooCommerce.
Also see: Best crypto payment gateways for businesses
Pricing:
- Monthly fee: $0
- Transaction fees:
- Sales volume under $500,000/month: 2% + 25 cents
- Sales volume between $500,000 to $999,999/month: 1.5% + 25 cents
- Sales volume between above $1million /month: 1% + 25 cents
How BitPay compares to PayPal
- Both PayPal and BitPay support QR, mobile, and online payments.
- Both platforms charge flat rate fees, but BitPay offers discounts based on transaction volume.
- You can integrate BitPay and PayPal into e-commerce and mobile POS platforms as additional payment options.
- Unlike PayPal, BitPay includes a volatility shield feature for crypto-to-fiat transactions.
- While BitPay offers invoicing tools similar to PayPal, it does not support functions like product catalogs and CRM.
Pros and cons
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PaymentCloud: Best PayPal alternative for high-risk merchants
PaymentCloud is a traditional merchant account service provider, offering payment processing services for all business types. It is particularly popular for its expertise in handling high-risk merchant accounts. PaymentCloud provides excellent merchant application and onboarding support, along with flexible payment services and custom pricing based on your business needs.
Why I chose PaymentCloud
One common complaint about PayPal is its unexpected account suspension/closures. When this happens, businesses often struggle to secure a new merchant account with other providers. Your best alternative is to work with a high-risk merchant account provider like PaymentCloud. While its fees are slightly higher, PaymentCloud can provide you with custom payment gateways and payment services, ensuring you pay only for the tools you need.
Also see: Best high-risk merchant account providers
Pricing:
Below are just sample pricing quotes provided by PaymentCloud. Note that PaymentCloud offers not just custom rates, it also helps you find the best pricing structure to maximize your savings based on your current sales volume and transaction types.
- Monthly account fee: $10 to $45
- Transaction fee:
- Low-risk transaction fee: 2% to 3.1%
- Medium-risk transaction fee: 2.3% to 3.4%
- High-risk transaction fee: 2.7% to 4.3%
- Virtual terminal: $15 to $45 per month
- Payment gateway: $15 per month
How PaymentCloud compares to PayPal
- Both PaymentCloud and PayPal support low-risk merchant accounts and offer pay-as-you-go, short term contracts.
- Unlike PayPal, PaymentCloud offers excellent support for high-risk merchants.
- PayPal does not require a merchant application process.
- PaymentCloud’s traditional merchant accounts are more stable and less likely to face sudden account closures compared to PayPal accounts.
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How to choose the best PayPal alternatives for my business?
Unlike most buyers’ guides that focus on the overall value-for-money features, choosing the best alternative to PayPal should begin with identifying the PayPal features that work for your business and those that don’t.
Some businesses may find PayPal’s rates too expensive as their sales grow. Others may realize that their payment processing needs have outgrown PayPal’s capabilities. Carefully evaluate the well-known advantages and disadvantages of using PayPal. Add any business-specific factors to this list to ensure your evaluation meets your unique needs.
PayPal pros and cons
| Pros | Cons |
|---|---|
| Most trusted online payment platform | Complicated pricing |
| Fast and easy setup | Flat rate fees w/o discount rates |
| Instant access to funds via PayPal balance | Limited payment gateway customization |
| Option for faster deposit/funding with fee | Lacks chargeback claim management |
| Peer-to-peer and mobile wallet functions | No B2B payment processing service |
| Can be added alongside other online payment processors | Charges additional fees for virtual terminal and recurring billing tools |
| Free basic mobile POS app | Lacks seamless integration between POS and online payments |
| Social media selling tools | Reports of frozen funds and account termination |
| Accepts multicurrency and crypto | Developer tools only for enterprise-level clients |
| PayPal one-click checkout (Fastlane) | |
| PayPal Pay later payment option |
To find the best PayPal alternative for your business, identify which disadvantages are most critical for you to address. Then, research alternative providers to determine how their features align with your list of PayPal’s strengths and weaknesses.
For this guide, I used PayPal’s disadvantages to create a list of providers that excel in addressing these missing features. Additionally, I ensured these providers meet some or most of PayPal’s pros. Finally, I compared each alternative provider to identify the best options tailored to different business types and needs.
