With the rise in the number of online businesses in the world comes the need for a well-structured online payment option for smooth transactions between you and your customers. Paypal allows you to send and receive payments for transactions made from all around the world, and a platform like this in a thriving industry wouldn’t be without competitors. So, hang on to find out who these competitors are.
Providing almost the same services as Paypal but via different strategies, Paypal’s competitors include Skrill, Payoneer, Stripe, TransferWise, and Square.
Top Paypal Competitors
Paypal is an online payment platform that makes for smooth peer-to-peer transfers and provides digital commerce for the global market, allowing you to send and receive payments in over 100 currencies.
While Paypal’s interface may be old, they prioritize the safety of your confidential information, keeping your transactions, card details, and other personal information secured.
Skrill
Skrill allows you to send and receive money from more than 30 countries at a conversion pay fee between 2.99% to 4.99% and offers you the option of linking your local bank account and saving your card details for quick and easy transactions.
They even issue out a debit card that you can use anywhere around the globe so that you don’t always have to transfer your money out of your skrill wallet before withdrawing.
Like Paypal, Skrill supports cryptocurrency transactions and has an added layer of security and fraud detection tools, and can freeze your account even at the slightest sign of foul play.
Payoneer
Payoneer is one of the top payment platforms for most freelance platforms that provide smooth digital payment services for professional and eCommerce businesses with international clienteles, especially since it is supported in more than 150 countries.
Unlike Paypal, Payoneer has low transaction fees such as a 3% credit charge for all currencies, 1% ACH bank debit rates, and a $1.50 fixed fee for GBP, USD, and EUR withdrawals to your local bank. Payoneer’s payment gateways are similar to that of Paypal and like Skrill, you get a Payoneer debit card that you can use for transactions anywhere in the world. As a platform mainly designed for small and medium business enterprises, Payoneer provides a Billing Service that allows you to receive payments from customers.
Stripe
Stripe is one of the biggest competitors for Paypal because most eCommerce businesses list them as their business option because of their easy API that makes online payment a breeze and supports third-party integration. For instance, despite Shopify having their payment platform- Shopify payments-, there’s still an option to pay for their services through Stripe. It also integrates with Wix and Weebly, and even large platforms like Google, Amazon, and Lyft use stripes as a payment platform for various transactions.
Stripe provides multiple payment options, payouts, revenue optimizations, customer interface, fraud and dispute options, etc. every transaction on Stripe attracts a 2.9% plus 30 cents fee and saves you the hassle of monthly fees because of the checkout process is self-hosted.
TransferWise
Recently known as Wise, TransferWise is the ideal payment platform for freelancers and businesses without third-party involvement. Wise offers affordable fixed and viable pricing and low transaction fees that trump that of Paypal so you can carry out a transaction for as low as $0.5.
TransferWise moves money around by cutting out hidden surcharges from transfer rates during inter-country transfers. For instance, when you transfer money from your UK account to an American recipient, the money goes into TransferWise’s UK bank account and pays your friend from their American bank account to keep the rates low and make transactions fast.
Square
Square isn’t like the other payment platforms and processors we discussed above. It offers more features that would have increased its customer base if it had not restricted its credit card payments to only merchants in Japan, the UK, Australia, and the U.S, making it as popular as Paypal.
Nevertheless, it remains a premium platform because you can own an online store on it and get a free domain. With Square, you can sell faster using its search-base POS, manage your vendors, send purchase orders, get reports on your cost of goods, create customer profiles with every sale, and even swipe cards without connection.
Square’s Point-of-sale inventory allows you to accept payments in form of cash, gift cards, checks, etc., while sending receipts, processing invoices, and managing real-time inventory. Square’s rate remains standard, charging 2.7% for processing in-store cards and 2.9% plus $0.30 for online and invoiced payments.
How do I choose the best Paypal competitor for my online transaction needs?
Compare the monthly and transaction fees and opt for the one you are most comfortable with
Ensure that their niche services are useful to your business.
Ensure it is safe and secure
Consider their integration services and compare their compatibility with third parties.
What are the benefits of online payment systems?
As online payment systems, Paypal and its competitors offer the following benefits.
- Send and receive payments easily
- Low risk of theft
- Donate and raise funds
- Request payment from your customers
- Secure and reliable
- Improved customer experience
- Saves time and resources
- Transparency between business and customer
Bottom Line
Paypal may be the largest digital payment platform at the moment but is not without its shortcomings. Having a lot of competitors means that you have other alternatives that you can choose from to cater to your transaction needs.
So, whether you are looking for a versatile payment method or a good user experience, you will always find one among Paypal’s competitors to meet those needs.
FAQs
- Will Paypal protect me if I get scammed?
Yes, Paypal buyer protection covers you when something goes wrong with your transaction.
- What is the safest online payment method?
Credit cards
- Can I link Paypal to my bank account?
Yes, you can
- Is it safe to use my debit card with Paypal?
Yes, it is.
