PayPal is a popular name for easy-to-use, cashless payment processing for solopreneurs and small businesses. It offers expansive integrations for accepting payments both in person and online, plus a growing point-of-sale (POS) system (Zettle). However, it’s far from the only option.
Although highly popular and easy to use, PayPal may not be suitable for small businesses looking for simpler and cheaper rates or those that need better account stability. High-risk merchants would also need a PayPal alternative.
We evaluated 15 excellent alternatives (or additions) to PayPal. Some have better rates, offer more stability with a traditional merchant account, or cater to more specific business types.
The best alternatives to PayPal are:
- Helcim: Best PayPal alternative for cheaper fees and zero-cost processing
- Stripe: Best PayPal alternative for online payments
- Square: Best PayPal alternative for a small business POS system
- Shopify (and Shop Pay): Best non-PayPal option for online stores and retailers
- Braintree: Best for international ecommerce payments
- Payoneer: Best for freelancers
- QuickBooks: Best non-PayPal choice for B2B invoicing
- Payment Depot: Best non-PayPal choice for high-volume sales
- Authorize.net: Best PayPal alternative for a flexible payment processor
- PaymentCloud: Best for high-risk merchants
- iATS: Best PayPal alternative for nonprofits
- Zelle: Best for bank-to-bank payments
- BitPay: Best for crypto payments
- Wise: Best for small cross-border transactions
- Wave: Best for recurring payments
PayPal & Its Alternatives Compared
PayPal at a Glance
Not only is PayPal the most-used online payment service by customers (82%), but it is also the most-offered buy button by ecommerce merchants (76%). In 2022, PayPal processed 22.3 billion transactions, generating over $1.3 trillion in payment volume.
PayPal Alternative for Cheaper Fees: Helcim
PayPal Alternative for Online Payments: Stripe
PayPal Alternative for Small Business POS: Square
PayPal Alternative for Ecommerce: Shopify
PayPal Alternative for International Ecommerce Payments: Braintree
PayPal Alternative for Freelancers: Payoneer
PayPal Alternative for B2B Invoicing: QuickBooks
PayPal Alternative for High-volume Businesses: Payment Depot
PayPal Alternative for Payment Gateway: Authorize.net
PayPal Alternative for High-risk Merchants: PaymentCloud
PayPal Alternative for Nonprofits: iATS Payments
PayPal Alternative for Bank-to-Bank Payments: Zelle for Business
PayPal Alternative for Crypto Payments: BitPay
PayPal Alternative for Small Cross-border Transactions: Wise Business
PayPal Alternative for Recurring Payments: Wave
Tips for Choosing a PayPal Alternative
When considering a PayPal alternative for your business, it’s important to make an informed choice to meet your specific financial needs. Here are some tips to help you make the right decision:
- Assess your business requirements: Start by understanding your business’s specific needs. Do you primarily need payment processing for online sales, in-person transactions, or international payments? Are you looking for advanced financial management tools, or do you need a straightforward solution for receiving payments? Identifying your requirements will help narrow down your options.
- Compare transaction fees: Different payment platforms have varying fee structures. Compare transaction fees, especially if your business processes a high volume of payments. Keep an eye on both the processing fees and any hidden charges.
- Evaluate integration capabilities: Check if the alternative platform can seamlessly integrate with your existing systems. This is crucial for efficiency and streamlining your financial processes.
- Consider security and buyer/seller protection: Consider the security measures in place and whether the platform offers buyer and seller protection. Security is vital in building trust with your customers and it is one of PayPal’s strengths.
- Check customer support and reliability: Research the reputation and customer support of the alternative platform. Responsive customer support is essential when you encounter issues or have questions.
- Inspect user-friendly interface: A user-friendly platform can save you time and reduce the learning curve for your team. Test the interface and see if it aligns with your ease-of-use preferences.
Frequently Asked Questions (FAQs)
Expand the sections below for more on the most common questions around PayPal alternatives.
For the most part, security is a huge concern for small businesses, and PayPal is a well-known popular target for phishing scams. Naturally, some merchants, particularly retailers with storefronts who are more comfortable with traditional credit card payment processors, would prefer alternatives that offer physical card readers for accepting payments.
PayPal offers some of the most affordable transaction fees for small businesses. However, depending on your preferred payment methods and sales volume, PayPal’s flat-rate fees and monthly subscription cost for certain payment services may become expensive. PayPal merchant fees are also somewhat difficult to navigate. Helcim is our top pick for cheaper fees, but it is best for established businesses.
Based on its pricing structure, we often recommend PayPal for hobbyists, solopreneurs, and micro businesses. Even feature-wise, there are a number of cost-effective alternatives to PayPal for merchants who regularly accept payments and are looking to aggressively grow their business. For example, consider upgrading your PayPal Zettle POS when you have a growing inventory that requires better tracking and management or if you want seamless integration between your brick-and-mortar shop and online store.
Bottom Line
PayPal is a hugely popular payment processor for international, online, and even in-person payment processing. However, it’s not your only choice, and in some cases, it may not even be your best option. The best PayPal alternatives listed here each have some features in common with PayPal, along with their own strengths. Any of these work instead of PayPal—or can be used in conjunction with PayPal.
If we had to pick the overall best alternative for PayPal, we’d choose Square because it’s so versatile. Solopreneurs and hobbyists can use it with a magstripe reader and free mobile POS, and it also offers features for running a busy store, restaurant, or salon with an online store on the side.