Last editedApr 20222 min read
How do you accept payments? While larger businesses might develop their own custom payment processing solution, many smaller businesses will use an all-in-one platform that can be embedded into your website. PayPal is one of the world’s most well-known online payment systems, but like any platform it has its pros and cons. If you’re searching for the best alternatives to PayPal for business, here are some options to consider.
Why look at alternatives to PayPal?
PayPal offers plenty of benefits, particularly to freelancers or small businesses seeking an easy way to get set up with an easy online checkout process. All you need to do is sign up for a business account, provide some identifying details, and embed the PayPal button on your checkout page. However, there are a few circumstances where you might need an alternative.
You want a cheaper solution.
You want easier integrations with your existing apps and ecommerce website.
You want greater control and customization.
You want a wider selection of built-in features.
You want a separate merchant account.
Best alternatives to PayPal for small business
There’s no one-size-fits all solution to suit every business, so the best alternatives to PayPal for small businesses will depend on your specific needs. As you compare options, think about factors like security, fees, and payment types. Do your customers prefer to pay by credit card, or are they interested inalternative payment options like Bitcoin? Do you want to be locked into a contract, or do you want more flexibility?
Stripe is one of the best alternatives to PayPal for business, offering an open API that lets companies tailor the platform to best suit their needs. However, if you’re a complete beginner to website development this might not be the easiest option. Stripe integrates with major ecommerce providers like Shopify, Wix, and Weebly websites. Additional features including invoicing, billing, and financial reporting tools. The typical base rate is 2.9% + 30 cents per transaction, which puts Stripe in line with PayPal’s pricing structure.
Another top PayPal alternative is Payoneer, which is growing as an electronic payment platform worldwide. Like PayPal, it’s ideal for international businesses because it operates in over 150 countries. Users can choose between two account types. The most basic account level is free, enabling you to withdraw funds into your bank account. For more advanced features like recurring billing and online payment requests, you’ll need to pay a 3% fee for credit cards and 1% for debit card transactions.
If your business already has an Amazon seller account, Amazon Pay is well worth looking into. This payment gateway makes it easy for your customers to check out on your website quickly and securely using their stored Amazon details. When you sign up, you can set up a seller account including a customizable API to integrate the payment button into your existing website. Amazon Pay is compatible with numerous ecommerce sites including Shopify and BigCommerce. Its charges are also on par with PayPal and Stripe, at 2.9% plus 30 cents per transaction.
The alternatives we’ve mentioned above work best online, but what should you do if you sell services in person? Square is the perfect alternative to PayPal with its POS capabilities and online payment processing solutions. You can accept contactless, chip cards, and magstripe payments with the company’s readers and Square Register. In-person transaction rates start at 2.6% plus 10 cents, while online transaction fees are 2.9% plus 30 cents.
If your business uses a subscription model or takes recurring payments for services, GoCardless is a great alternative to PayPal. It offers a Direct Debit solution that pulls payment directly from the customer’s account, with permission. Users can take payments from over 30 different regions at the real exchange rate, making it an international solution like PayPal. With Success+, GoCardless’s intelligent payment retries tool, businesses can automatically retry payments that fail the first time around. It also integrates with major software partners like Xero to keep your finances organized throughout the invoicing and billing process.
We can help
GoCardless helps you automate payment collection, cutting down on the amount of admin your team needs to deal with when chasing invoices. Find out how GoCardless can help you with ad hoc payments or recurring payments.