14 Alternatives to PayPal for Small Business

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 as well as a growing POS system (Zettle). However, it’s far from the only option.

We evaluated dozens of 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 for business are:

• Stripe: Best overall PayPal alternative for online payments
• Square: Best overall competitor for a small business POS system
• Shopify (and Shop Pay): Best non-PayPal option for online stores and retailers
• Zelle: Best bank-to-bank payments alternative for solopreneurs
• QuickBooks: Best non-PayPal choice for B2B invoicing
• iATS: Best PayPal alternative for nonprofits
• Payanywhere: Best for small, quick-service restaurants and food trucks
• Payment Depot: Best non-PayPal choice for high-volume sales
• Braintree: Best for larger businesses doing international sales
• Authorize.net: Best PayPal alternative for a flexible payment processor

Notable Mentions:

• Amazon Pay: Best option for voice commerce
• Google Pay: Best PayPal substitute for secure checkout
• 2Checkout (Verifone): Best option for international payments
• PaymentCloud: Best for high-risk merchants

Best PayPal Alternatives Compared

	Monthly Subscription Fee	In-person Transaction Rate	Online Transaction Rate	Keyed-in Transaction Rate	Chargeback Fee	Online Checkout
	$0–$30	2.29% + 9 cents	2.59% + 49 cents to 3.49% + 49 cents	3.49% + 49 cents	$20	✓
	Visit PayPal
	$0	2.7% + 5 cents	2.9% + 30 cents	3.4% + 30 cents	$15	✓
	Visit Stripe
	$0–$60	2.6% + 10 cents	2.9% + 30 cents	3.5% + 15 cents	Waived up to $250/mo.	✓
	Visit Square
	$29 to $299 (for Shopify store)	2.4%–2.7%	2.4% + 30 cents–2.9% + 30 cents	2.4% + 30 cents–2.9% + 30 cents	Varies	✓
	Visit Shopify
	$0	Bank fees	Bank fees	Bank fees	Bank fees	N/A
	Visit Zelle
	$30–$200 (QuickBooks Online)	2.4% + 25 cents	2.8%–2.9% + 25 cents	3.2%–3.5% + 25 cents	$25	Third party
	Visit QuickBooks
	Not disclosed	Not disclosed	Not disclosed	Not disclosed	Not disclosed	✓
	Visit iATS Payments
	$0	2.69%	3.49% + 19 cents	3.49% + 19 cents	$0–$25	Virtual Terminal
	Visit Payanywhere
	$59–$99	Interchange plus 8 cents	Interchange plus 15 cents	Interchange plus 15 cents	$0	Virtual Terminal
	Visit Payment Depot
	$0	PayPal rates	2.59% + 49 cents	3.49% + 49 cents (Venmo)	$15	✓
	Visit Braintree
	$25	N/A	2.9% + 30 cents	2.9% + 30 cents	$25	✓
	Visit Authorize.net

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	Monthly Subscription Fee	In-person Transaction Rate	Online Transaction Rate	Keyed-in Transaction Rate	Chargeback Fee	Online Checkout
	$0–$30	2.29% + 9 cents	2.59% + 49 cents to 3.49% + 49 cents	3.49% + 49 cents	$20	✓
	Visit PayPal
	$0	2.7% + 5 cents	2.9% + 30 cents	3.4% + 30 cents	$15	✓
	Visit Stripe
	$0–$60	2.6% + 10 cents	2.9% + 30 cents	3.5% + 15 cents	Waived up to $250/mo.	✓
	Visit Square
	$29 to $299 (for Shopify store)	2.4%–2.7%	2.4% + 30 cents–2.9% + 30 cents	2.4% + 30 cents–2.9% + 30 cents	Varies	✓
	Visit Shopify
	$0	Bank fees	Bank fees	Bank fees	Bank fees	N/A
	Visit Zelle
	$30–$200 (QuickBooks Online)	2.4% + 25 cents	2.8%–2.9% + 25 cents	3.2%–3.5% + 25 cents	$25	Third party
	Visit QuickBooks
	Not disclosed	Not disclosed	Not disclosed	Not disclosed	Not disclosed	✓
	Visit iATS Payments
	$0	2.69%	3.49% + 19 cents	3.49% + 19 cents	$0–$25	Virtual Terminal
	Visit Payanywhere
	$59–$99	Interchange plus 8 cents	Interchange plus 15 cents	Interchange plus 15 cents	$0	Virtual Terminal
	Visit Payment Depot
	$0	PayPal rates	2.59% + 49 cents	3.49% + 49 cents (Venmo)	$15	✓
	Visit Braintree
	$25	N/A	2.9% + 30 cents	2.9% + 30 cents	$25	✓
	Visit Authorize.net

PayPal At a Glance

PayPal At a Glance

What We Like

• Seamless online checkout integration
• Known and trusted platform by consumers
• Instant deposits into your PayPal account
• Discounted processing fees for nonprofits

What's Missing

• Unpredictable freezing of funds
• Complicated pricing
• Limited POS features and benefits
• No offline payment processing

Deciding Factors

• Monthly fees:
  • PayPal account: $0–$30
  • Virtual terminal: $30
  • Recurring billing: $10
  • Recurring payment tool: $30
  • Payment gateway: $0–$25
• Transaction fees:
  • PayPal payments online: 3.49% + 49 cents
  • Online card payments: 2.59% + 49 cents
  • In-person card Payments: 2.29% + 9 cents
  • Invoicing: 3.49% + 49 cents
  • ACH: 3.49% + 49 cents, capped at $300
• Zettle:
  • Free basic POS system
  • Card-present processing fee: 2.29% + 9 cents
  • Keyed-in processing fee: 3.49% + 9 cents
  • Card readers: From $29
  • Terminals: From $249
• Chargeback fee: $20

Not only is PayPal the most-used online payment service by customers (90%), but it is also the most-offered buy button by ecommerce merchants (71%). In 2021, PayPal processed 19.3 billion transactions and generated over $1.2 trillion in payment volume.

PayPal is a highly popular payment processor, especially for solopreneurs and occasional sellers, because of its excellent multichannel capability and reasonable fees. It also has the advantage of one-click checkout. PayPal One Touch does not log a user out of PayPal until they choose to. This lets them conduct multiple transactions on different devices with just a click.

You’ll find PayPal in several of our best-of lists:

• Best merchant service
• Best nonprofit credit card processing solutions
• Best payment gateway (Payflow by PayPal)

Where We Recommend PayPal

• For occasional or low-volume in-person sales: It’s easy to request payments to your PayPal account using your email or PayPal.me. For those with inventory or needing a checkout system, there’s PayPal Zettle. This POS system for Android and iOS earned a spot in our best mobile credit card processors list. Learn more in our PayPal Zettle review.
• For accepting online payments: PayPal is so easy to integrate into online systems. Even some of the competitors on this list will also allow PayPal as an additional payment method. You can add a PayPal button just about anywhere, from social media to your online store or even your online invoices.
• For accepting cross-border payments: We also like PayPal for international payment processing. It’s a highly versatile system, good for large corporations and individuals selling across borders. However, it has an extremely complex pricing structure, as rates depend not only on payment method but also the country. Even cross-border fees vary.

Read our full PayPal Business review

Stripe: Best for Online Payments

Stripe

What We Like

• Highly customizable, secure platform
• Low-cost, ACH processing
• Free merchant account
• 24/7 support

What's Missing

• Complex installation process
• Expensive chargeback fee
• Lacks virtual terminal and POS tools

How Stripe Compares to PayPal

Stripe has:

• Higher in-person transaction fees
• Simpler fee structure
• Volume discounts
• Better customer support hours (24/7)
• Integrates with most POS systems

PayPal has:

• Payment tools that are easier to use.
• A native virtual terminal solution

We rate Stripe highly for a multitude of payment processing needs—it is one of our best payment gateways and leading merchant services. It’s also our No. 1 choice for international merchant accounts, but its integration capability and online tools make it an even better alternative to PayPal for online sales. Its application programming interface (API) and software development kit (SDK) tools are top-notch and designed to give you a flexible payment processor.

While we list Stripe as a great alternate choice to PayPal for online sales, we would be remiss if we didn’t mention its terrific international functions. Stripe, like PayPal, works in hundreds of countries around the world, presents in the local currency, and handles cryptocurrency. Getting started with Stripe is easy but does require some technical know-how. You sign up for an account just like with PayPal, and then you start integrating it with your software.

Closer Look at Stripe vs PayPal

If you have low-volume sales, use Stripe’s lower transaction rates and lesser monthly fees as an alternative to PayPal for online payments and invoicing. It also offers better cross-border tools and pricing. Stripe has a card reader and handheld terminal but no POS system like Shopify or PayPal. Check out more on how Stripe compares to PayPal.

Square: Best Small Business Point-of-Sale (POS) System

Square

What We Like

• Straightforward pricing
• Lots of integrations, add-ons
• Easy setup
• Free POS, online store, magstripe reader

What's Missing

• Does not accept PayPal Pay in person
• Limited international scope
• Can only be used within the Square ecosystem

How Square Compares to PayPal

Square has:

• A more stable and scalable POS system
• No monthly fees for virtual terminal, recurring billing, and payment gateway
• Offline mode for payment processing

PayPal has:

• Compatibility with other software

Both Square and PayPal offer instant deposits for an additional 1.5% fee

Square is the most popular competitor to PayPal for mobile POS (mPOS)—and in general—because it offers payment processing at a reasonable flat rate, a free POS, and an online store. It also consistently makes our lists for best merchant services, credit card processors for nonprofits, and restaurant credit card processing. It is our leading POS system—our top pick, in fact, for retail and salons—and also ranks for inventory.

Like Stripe, Square is often closely compared to PayPal, especially for POS. Square’s POS is as easy to use as PayPal’s Zettle and has more features, including hundreds of integrations for ecommerce, delivery services, and accounting. In addition, Square offers a free virtual terminal and invoices with ACH payment processing. PayPal, meanwhile, has the advantage of being accepted by more online venues than Square.

Closer Look at Square vs PayPal

For a stable and customizable POS system that grows with your business, Square is the better choice. While PayPal fees are generally cheaper, Square is a more affordable solution if you routinely accept ACH payments. It also offers a more robust POS system with almost every integration and add-on you would ever need. The system is quick and easy to set up, perfect to use for hobbyists yet featured enough for SMBs.

However, unlike PayPal that can be integrated to other POS systems (including Square) as an additional payment method, Square’s payment processing tools are exclusive to Square users. See in detail how Square compares to PayPal.

Shopify: Best PayPal Alternative for Online Stores

Shopify

What We Like

• User-friendly platform
• Excellent online store and inventory tools
• POS app for in-person sales
• Hundreds of additional features and integrations via Shopify app store

What's Missing

• $29 per month for a full ecommerce setup
• Charges for third-party processors
• No offline mode

How Shopify Compares to PayPal

Shopify has:

• More well-rounded ecommerce features
• A monthly fee to set up your online store

PayPal has:

• Free to use online checkout pages

Both:

• Support social media selling with payment links you can paste on most social media platforms
• Offer a one-click payment solution for easy online checkout

If you are looking for a stronger online store than PayPal provides, Shopify is a great choice. It is one of the best and most popular ecommerce solutions on the market and is also on our list of best payment apps and POS systems for multichannel retailers. Shopify also has one of the best suites of omnichannel tools, including integration with dropshipping companies and deep discounts on shipping—something PayPal and the others on this list do not do.

One of PayPal’s biggest selling points for ecommerce is its one-click buy button. However, Shopify offers a similar solution called Shop Pay that can be added as a one-click checkout option to any Shopify site. Anyone with a Shopify account (business or customer) can save their checkout information to use across all Shopify sites through Shop Pay. It’s also easy to add Shopify to social networks like Facebook or multichannel sales platforms like eBay.

Closer Look at Shopify vs PayPal

Shopify is a solid alternative to PayPal if you’re running an active ecommerce business. Unlike PayPal’s Zettle, you have to purchase Shopify’s shopping cart/POS plan, which starts at $29 per month. It does include a virtual terminal in the form of its backend ordering system, so when considering that, the basic plan nearly matches what you’d pay with PayPal. However, if you plan on adding a third-party payment processing option, note that Shopify charges a commission fee anywhere from 0.5%–2% (depending on your subscription plan) per transaction.

Zelle: Best for Bank-to-Bank Payment Processing for Solopreneurs

Zelle

What We Like

• Usually free for businesses and consumers
• Easy bank transfers
• Money goes straight to your account
• Fast signup and easy to use

What's Missing

• Requires you, your bank, and your customer to have a Zelle account
• May set an upper limit
• No POS integration

How Zelle Compares to PayPal

Zelle has:

• Limitations to certain bank and account types
• Funds go directly from one bank to another
• No fees; free to use

PayPal has:

• Manual bank transfers to deposit funds
• Transaction fees

Both:

• Support peer-to-peer and merchant payments
• Supports payments using QR codes.

One of the great things about PayPal is that it works for peer-to-peer transfers, which many hobbyists, solopreneurs, and small businesses use to get payments. Zelle does the same thing, with an added advantage: It transfers to and from your bank account directly and is a great alternative to ACH transfers (which PayPal cannot process) and e-checks (which PayPal charges a processing fee for).

Zelle is extremely simple. There’s no invoicing and no POS. You log in, choose who you’re sending money to, set the amount, and send. However, both you and your customer must have a Zelle account to use the service, but the process is super simple and generally free. Note that your bank will also need to offer Zelle so some banks may charge small businesses to use this feature. You can enroll in Zelle through your bank’s payment app.

Closer Look at Zelle vs PayPal

Unlike PayPal, any charges involving payment processing with Zelle will come from using your banking service. It is by no means meant to act as a high-volume payment processor, but if you need a free and easy way to accept or send a few payments, it fits the bill. It rivals PayPal’s ability to support peer-to-peer transactions, ideal for microbusinesses and solopreneurs, but with the added convenience of having your payments directly routed to your bank account. Other payment processors (including PayPal) take one or more business days, while same-day transfers often come with a fee.

QuickBooks: Best PayPal Alternative for B2B & Accounting

QuickBooks

What We Like

• Integrated QuickBooks Accounting
• Easy invoicing function
• Free instant deposits
• Offers both ACH and e-check payment processing

What's Missing

• Must have a QuickBooks account
• No online store
• Does not support international payments

How QuickBooks Compares to PayPal

QuickBooks has:

• Restrictions and can only be used by QuickBooks accounting customers

PayPal has:

• Ability to connect with other payment and POS systems
• Cheaper chargeback fees & chargeback protection
• Cheaper international payments

Both QuickBooks and PayPal offer $49 proprietary mobile card readers and mobile payment apps.

PayPal offers free invoicing and integrates with QuickBooks, but if you are a freelancer that sells items and works under contract or does B2B sales that primarily involve invoices, then QuickBooks is a strong alternate choice. There is a monthly fee because you must be a QuickBooks user to use Payments. However, you get the accounting software, which integrates almost as widely as PayPal. The transaction fees are close to PayPal’s, and if you regularly process over $7,500 a month, you can apply for a discount of up to 40% per transaction.

One advantage QuickBooks has over all the PayPal alternatives here is that it lets you deposit money into different accounts. You can set up recurring payments and get notified when an invoice is paid. It also has a highly rated mobile app for selling products in person. Overall, QuickBooks Payments is one of our leading credit card payment apps and also on our list for the best B2B solutions.

Closer Look at QuickBooks vs PayPal

While QuickBooks monthly fees are much higher compared to PayPal’s, users get complete access to QuickBooks’ accounting and invoicing features. Payment processing rates for online, keyed-in, and invoicing are also considerably cheaper, and there is no additional cost to use any of its payment services. This makes QuickBooks a strong alternative to PayPal for B2B companies with large volumes of invoiced transactions.

iATS: Best PayPal Alternative for Nonprofits

iATS

What We Like

• No chargeback fees
• Integrates with donation-specific software
• No early termination fees

What's Missing

• May require at least one-year contract
• Customer database requires integration
• Longer than usual fund transfers

How iATS Compares to PayPal

iATS has:

• Primary focus on donation processing
• Non-public pricing
• No chargeback fees

PayPal has:

• Consumer, merchant, and nonprofit payment processing
• Discounted fees for eligible nonprofits and charities
• Chargeback protection
• Built-in customer management tools

Both PayPal and iATS are free to use and does not impose early termination fees, however, iATS may require users to sign up for at least a 1-year contract.

PayPal offers deep discounts to nonprofits using its system. However, if you need an alternate option or want something more focused on the needs of nonprofits, look to iATS. This merchant service works exclusively with nonprofit organizations and can process donations around the world in credit card, ACH, and other methods. Larger charities that use Salesforce will appreciate its integration, Brickwork by iATS, but it also integrates with hundreds of other applications, many of which are charity-centric.

Unlike PayPal, iATS does not have its own POS; however, it lets you create online forms you can embed in your website or use as a standalone solution, and you can build a shopping cart with its Aura program. It recently added hosted pages, pre-populated forms, and the ability to let donors cover processing fees. It has a mobile app that works with iOS only; most on our list work with Android and iOS.

Closer Look at iATS vs PayPal

As a fully nonprofit payment processing platform, iATS is an easy PayPal alternative choice for nonprofit organizations. Unfortunately, iATS does not list its pricing online, as PayPal does. However, we found rates ranging from 2.49% to 3.2% + 26 cents. For comparison, PayPal’s rates are 2.89% + country fee. Unlike PayPal, it may require an annual contract.

Payanywhere: Best PayPal Alternative for Quick Service Restaurants & Food Trucks

Payanywhere

What We Like

• Free chip card reader
• Offline payment processing
• Offers pay-as-you-go and long-term subscription options
• Free faster-than-usual deposit of funds

What's Missing

• Complaints about hidden fees
• Charges an inactivity fee
• Lacks e-check and ACH processing

How Payanywhere Compares to PayPal

Payanywhere has:

• Free chip reader
• Free virtual terminal
• Custom rates in exchange for a long-term contract and early termination fee
• Offline payment processing
• Free “same-day” funding
• Inactivity fee after $12 months

PayPal has:

• Support for ACH & e-check payments
• Better online payment tools

Both offer pay-as-you-go subscription options

If you have a restaurant and neither Zettle nor Square appeals to you, try Payanywhere. It offers open tabs, split payments, employee scheduling, and tip functions that make it good for small restaurants. It also has an offline mode, which PayPal Zettle lacks, making it an even better choice for food trucks or food booths. Top that off with a free “same-day” deposit of funds transferred before 10:30 a.m.—better than PayPal.

While it does not have the same breadth of online integrations as PayPal or Square, Payanywhere’s POS system is pretty good for a free software, and (like Square) it integrates with some delivery systems like GRUBBRR. Altogether, decent POS features and low prices earned Payanywhere a spot on our list of the best credit card payment apps.

Closer Look at Payanywhere vs PayPal

Payanywhere’s free plan has a higher transaction rate than PayPal’s, but because it does not add a flat rate, it’s actually cheaper for transactions under $22. It also has custom plans with better transaction rates (but note the long-term contract and expensive early termination fees), not to mention your first 2-in-1 card reader is free. If your business does not require ACH or e-check payment processing, Payanywhere is a viable option.

Payment Depot: Best PayPal Alternative for High-volume Businesses

Payment Depot

What We Like

• Subscription pricing with no percentage markup
• No contract or cancellation fee
• All-in-one membership for online, in-store, and mobile processing
• Free equipment reprogramming

What's Missing

• Low processing limits
• Lacks built-in recurring payments processing functionality
• No chargeback management tools

How Payment Depot Compares to PayPal

Payment Depot has:

• Monthly subscription
• Interchange-plus pricing
• Free virtual terminal

PayPal has:

• Flat-rate transaction fees
• International payment processing capabilities

Both PayPal and Payment Depot offer pay-as-you-go subscriptions (no long-term contract).

PayPal’s rates can add up fast if you do brisk or high-ticket sales. If you generate over $10,000 in credit card transactions per month, then Payment Depot could save you money. In addition to being one of the best merchant services overall, it is on our list of the cheapest payment processors for its no-percentage markup. Its pricing differs from PayPal in that it charges a monthly membership fee but the low, interchange-plus rates can make up for that quickly.

The most significant difference between PayPal and Payment Depot is its user base. While PayPal supports peer-to-peer payments processing ideal for micro businesses and hobbyists, Payment Depot is more attractive to merchants that regularly process larger sales volumes like B2Bs. It does not charge any cancellation fees and unlike PayPal, Payment Depot does not fine you for chargebacks.

Closer Look at Payment Depot vs PayPal

Larger businesses will find Payment Depot’s rates more cost-effective, considering that subscription fees are based on sales volume. Users can access all of Payment Depot’s payment processing services regardless of plan. However, the current pricing structure provides a lower processing limit per plan type, which means merchants processing sales between $20,001–$50,000 per month will now pay a higher monthly subscription fee.

Braintree: Best for Larger Businesses Accepting International Payments

Payment Depot

What We Like

• Reduced rates for nonprofits
• Provides individual merchant accounts
• Simple pricing for international transactions
• Affordable rates for ACH deposits

What's Missing

• Potentially longer application process
• Invoicing needs third-party integration
• Complex interface can be difficult to use

How Braintree Compares to PayPal

• Braintree is also powered by PayPal and some features like POS go through the same platform.
• Unlike PayPal, which only accepts e-check transactions, Braintree offers ACH payment processing.
• Braintree accounts take longer to approve, unlike with PayPal, which is almost instant.
• Fees for international payment processing are more simple with Braintree compared to PayPal’s payment structure.
• Unlike PayPal that offers chargeback protection for qualified transactions, Braintree applies chargeback fees on every transaction.
• Braintree does not charge extra for the use of its virtual terminal, while PayPal imposes a $30 monthly fee

Braintree is a PayPal company that focuses on international payment processing. While it works closely with PayPal, even depending on it for some tools like POS, it differs from PayPal in that it assigns each merchant their own account. This sets it apart from Verifone as well. You may face a longer approval rate, but it pays in better account stability than PayPal gives. Braintree also provides interchange-plus pricing for high-volume merchants, making it a great choice for larger businesses.

It has several advantages that come from being a PayPal company: name recognition, access to tools like Zettle, and even PayPal support teams for certain ecommerce integrations. Naturally, it processes PayPal and Venmo (also a PayPal company). Like others across this list, it relies on integrations and APIs rather than having its own POS solutions.

Closer Look at Braintree vs PayPal

PayPal merchants starting to outgrow its features will find Braintree a natural upgrade. It automatically integrates your PayPal merchant account, gives you access to level 2 and 3 data processing, and provides you with better transaction rates, including interchange-plus pricing. If you need a direct PayPal integration for your large business that accepts international payments, Braintree is the ideal choice.

Authorize.net: Best PayPal Alternative for Flexible Payment Processing

Authorize.net

What We Like

• Popular and reliable
• Offers merchant account and/or payment processing
• Easy to integrate and use
• Discounted rates available for nonprofits

What's Missing

• Lacks some reporting and in-person payment features
• Requires separate merchant account
• Charges a monthly fee

How Authorize.net Compares to PayPal

• Both PayPal and Authorize.net are easy to set up and recognized as a popular and reliable online payment processor.
• Like PayPal, Authorize.net does not charge any setup or cancellation fees.
• Authorize.net offers very limited in-person payment processing while PayPal has a proprietary mobile app and credit card reader to accept card-present transactions.
• Both PayPal and Authorize.net are popular payment processing integrations with most POS and ecommerce platforms.
• Both PayPal and Authorize.net charge $25 per month for using its payment gateway service.
• Unlike PayPal, Authorize.net can set you up with an independent merchant account.

If PayPal is not the right solution for you for general payment processing, Authorize.net is an excellent alternative. It’s unique in that it offers two plans: if you have a merchant account, you can get only payment processing at cheap rates, or you can also secure a merchant account via its all-in-one plan. It does charge a monthly fee but no chargeback fees. Authorize.net earned the top spot in our evaluation of the best payment gateways.

Like PayPal, Authorize.net has more complaints about frozen funds and canceled accounts than PaymentCloud and Payment Depot. However, according to cardpaymentoptions.com, many issues seem to be not with Authorize.net so much as its partner merchant accounts. It also allows you to accept international payments using more than 140 payment solutions and a wide range of software integrations.

Closer Look at Authorize.net vs PayPal

If you prefer to run your business with a simple, standalone payment gateway, then Authorize.net is your best alternative. It offers a payment gateway only plan that charges 10 cents per transaction + 10-cent daily batch fee and an all-in-one plan that comes with a merchant account and single flat rate fee for both card-present and card-not-present payments. With an in-person payment processing feature (though limited), Authorize.net essentially offers one of the most flexible payment platforms in the market.

Notable Mentions

While not often first on a merchant’s list, the following merchant account/payment processors also offer viable alternatives to PayPal for specific functions:

Amazon Pay: Best for Voice Commerce

Google Pay: Best PayPal Substitute for Secure Online Checkout

2Checkout (Verifone): Best Alternative for International Payments

PaymentCloud: Best for High-risk Merchants

PayPal Alternatives Frequently Asked Questions (FAQs)

Why do some merchants look for alternatives to PayPal?

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. Read more on the pros and cons of using PayPal for business.

Is there a cheaper option to Paypal?

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. If you run a growing business, check out some of the cheapest credit card processing companies that offer simple interchange-plus pricing and lower (often free) monthly fees.

When should I consider upgrading from a PayPal merchant account?

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 a 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, may not even be your best option. The payment processors 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. Visit Square to get your free account and get started.

Visit Square