The best PayPal alternatives provide the same payment processing flexibility and offer additional tools that cater to broader business types.
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:
| PayPal | |||||
| Stripe | |||||
| Square | |||||
| Shopify | |||||
| Zelle | |||||
| QuickBooks | |||||
| Payment Depot | |||||
| Helcim | |||||
| Payoneer | |||||
| BitPay | |||||
| PaymentCloud |
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.
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
Visit Stripe
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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.
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
Visit Square
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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.
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
Visit Shopify
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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.
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.
Visit Zelle
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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.
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.
Visit QuickBooks
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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.
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.
Visit Payment Depot
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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.
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.
Visit Helcim
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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.
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.
Visit Payoneer
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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.
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
Visit BitPay
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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.
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
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.
Visit PaymentCloud
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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.
| 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.
Anna Lynn Dizon has over four years of experience in risk mitigation, serving as both a research lead and client liaison. Her fintech journey began at PayPal in customer and technical support, followed by a role in office and finance management for a U.S. company that collaborates with global banks to establish and manage HR and international payment processing. Since 2017, Anna has been a contributing writer for Fit Small Business, Technology Advice, and TechRepublic, covering fintech and POS software reviews, payment processing guides, eCommerce, inventory management, business startups, and regulatory compliance.
