12 PayPal Alternatives for E-commerce Businesses

In e-commerce, selecting the right payment processor is essential for smooth transactions and boosting sales. While PayPal is widely recognized, it might not suit every business due to fees, features, or integration needs. This article highlights nine PayPal alternatives tailored for e-commerce, examining their features, pricing, and benefits for your online store.

What is PayPal?

PayPal offers a straightforward way for customers to make purchases online, supporting various payment methods and currencies. It integrates with most e-commerce platforms, providing a familiar checkout process that can boost customer trust.

Key Features for E-commerce:

• Easy Integration: Compatible with major e-commerce platforms like Shopify, WooCommerce, and Magento.
• Express Checkout: Simplifies the payment process, reducing cart abandonment rates.
• Buyer and Seller Protection: Offers dispute resolution services to protect both parties.
• Global Reach: Supports transactions in over 200 countries and 25 currencies.

While PayPal is convenient, e-commerce businesses might seek alternatives due to its transaction fees, limitations in certain regions, or the need for more advanced features like customization or better fraud prevention tools.

Overview of PayPal Alternatives

Below is a comparison of PayPal and its nine e-commerce-focused alternatives, highlighting key features, transaction fees, and suitable businesses.

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Top 12 PayPal Alternatives

Here are the top alternatives to paypal that you should know:

1. Stripe

Stripe is a powerful payment processing platform renowned for its developer-friendly API and seamless integration capabilities, making it a favorite among e-commerce businesses looking for customization and scalability.

E-commerce Advantages:

• Seamless Integration: Easily integrates with e-commerce platforms such as Shopify, WooCommerce, BigCommerce, and custom-built sites.
• Customizable Checkout: Allows for personalized checkout experiences that match your brand identity.
• Supports Multiple Payment Methods: Accepts credit/debit cards, digital wallets like Apple Pay and Google Pay, and local payment options.
• Advanced Fraud Detection: Stripe Radar uses machine learning to protect against fraudulent transactions.
• Subscription Management: Ideal for businesses offering recurring billing or subscription services.

Pricing:

Stripe charges a standard rate of 2.9% plus $0.30 per successful card charge. There are no setup fees or monthly fees; you pay only for what you use. Additional fees may apply for international cards or currency conversion, and there are options for customized enterprise pricing for businesses with large volume needs.

Ideal For: E-commerce businesses seeking a flexible, scalable, and customizable payment solution with robust security features.

2. Square

Square offers a comprehensive suite of payment and point-of-sale solutions, extending from in-person sales to online transactions, making it a versatile option for e-commerce retailers.

E-commerce Advantages:

• Free Online Store: Provides a basic e-commerce website builder with integration to Square payments.
• Easy Integration: Compatible with platforms like WooCommerce, Wix, and Magento.
• Unified Inventory Management: Syncs inventory across online and offline channels.
• Accepts Various Payment Methods: Supports all major credit cards, Apple Pay, and Google Pay.
• No Monthly Fees: Transparent pricing with pay-as-you-go transaction fees.

Pricing:

For online payments, Square charges 2.9% plus $0.30 per transaction. There are no monthly fees for basic services; however, additional services like payroll or marketing tools may incur extra costs. In-person transactions have a lower rate of 2.6% plus $0.10 per swipe, dip, or tap.

Ideal For: Small to medium-sized e-commerce businesses looking for an integrated solution that combines online and offline sales channels.

3. Authorize.Net

As a subsidiary of Visa, Authorize.Net is a trusted payment gateway offering secure and reliable payment solutions, especially suitable for established e-commerce businesses.

E-commerce Advantages:

• Comprehensive Fraud Detection: Advanced Fraud Detection Suite to minimize risk.
• Extensive Integration Options: Compatible with various shopping carts and e-commerce platforms.
• Recurring Billing and Subscription Management: Simplifies automated billing for subscription-based models.
• Customer Information Management: Securely stores customer payment data for easy repeat purchases.
• 24/7 Customer Support: Access to support via phone, email, or live chat.

Ideal For: Established e-commerce businesses requiring a robust, secure payment gateway with advanced features and dedicated support.

Pricing:

Authorize.Net offers two main pricing plans. The All-in-One option is designed for businesses that need both a payment gateway and a merchant account, charging 2.9% plus $0.30 per transaction, with a monthly gateway fee of $25. For businesses that already have a merchant account, the Payment Gateway Only plan charges a monthly gateway fee of $25, plus a per-transaction fee of $0.10 and a daily batch fee of $0.10.

4. Braintree

Owned by PayPal, Braintree offers a full-stack payment platform that enables e-commerce companies to accept payments seamlessly across web and mobile applications.

E-commerce Advantages:

• Multiple Payment Methods: Accepts credit/debit cards, PayPal, Venmo (US only), digital wallets, and local payment methods.
• Global Reach: Supports over 130 currencies and operates in more than 45 countries.
• Customizable Checkout Experience: Tailor the payment process to align with your brand.
• Easy Integration: SDKs available for various programming languages and platforms.
• Fraud Protection: Includes basic fraud tools, with advanced options available.

Pricing:

Braintree charges a standard fee of 2.9% plus $0.30 per transaction for U.S.-based transactions using credit cards, debit cards, PayPal, Venmo, and digital wallets. There are no monthly fees or minimums, and no fees for refunds or failed transactions. Customized pricing may be available for businesses with large payment volumes or unique business models.

Ideal For: E-commerce businesses seeking a flexible payment solution with a global reach and support for multiple payment options.

5. 2Checkout (now Verifone)

2Checkout is a global payment platform that enables e-commerce merchants to accept payments from customers worldwide, offering localized buying experiences.

E-commerce Advantages:

• Global Payment Processing: Supports transactions in over 200 countries and 45+ payment methods.
• Localized Checkout: Provides localized languages and currencies for international customers.
• Subscription Billing: Offers tools for managing recurring payments and subscriptions.
• E-commerce Integrations: Compatible with over 120 shopping carts and e-commerce platforms.

Pricing:

2Checkout offers different pricing plans based on the features required. The 2Sell plan is suitable for merchants selling physical or digital goods and charges 3.5% plus $0.35 per successful sale. For subscription-based businesses, the 2Subscribe plan charges 4.5% plus $0.45 per transaction. The 2Monetize plan, designed for companies needing a full commerce solution, charges 6.0% plus $0.60 per transaction.

Ideal For: E-commerce businesses aiming to expand internationally and needing a payment processor with extensive global capabilities.

6. Amazon Pay

Amazon Pay allows e-commerce retailers to offer a familiar and trusted payment experience by enabling customers to use their Amazon account information at checkout.

E-commerce Advantages:

• Familiarity and Trust: Leverages Amazon's brand reputation to increase customer confidence.
• Streamlined Checkout: Reduces friction by using stored Amazon customer information.
• Mobile Optimization: Provides a seamless experience across devices.
• Easy Integration: Plugins available for major e-commerce platforms like Shopify, Magento, and WooCommerce.

Pricing:

Amazon Pay charges a domestic processing fee of 2.9% plus $0.30 per transaction for U.S.-based merchants. There are no monthly fees or setup fees. For cross-border transactions, an additional 3.0% cross-border fee applies. Chargeback fees are $20 per transaction if applicable.

Ideal For: E-commerce businesses looking to improve conversion rates by simplifying the checkout process with a trusted payment method.

7. Shopify Payments

For e-commerce businesses using Shopify, Shopify Payments offers an integrated payment solution that eliminates the need for third-party providers.

E-commerce Advantages:

• Seamless Integration: Built directly into the Shopify platform.
• No Transaction Fees: Shopify waives additional transaction fees when using Shopify Payments.
• Accelerated Checkout: Supports Shop Pay for faster customer checkout.
• Multi-Currency Support: Sell in multiple currencies with automatic exchange rate updates.
• Chargeback Management: Provides tools to handle disputes efficiently.

Pricing:

Transaction fees for Shopify Payments vary based on your Shopify subscription plan. The Basic Shopify plan charges 2.9% plus $0.30 per online transaction. The Shopify plan reduces this to 2.6% plus $0.30, and the Advanced Shopify plan offers rates of 2.4% plus $0.30 per transaction. There are no additional transaction fees beyond your monthly Shopify subscription.

Ideal For: E-commerce businesses operating on Shopify seeking a fully integrated payment solution with competitive rates.

8. Klarna

Klarna offers flexible payment options for customers, such as buy now, pay later (BNPL), which can enhance sales and customer satisfaction for e-commerce retailers.

E-commerce Advantages:

• Flexible Payment Options: Allows customers to pay in installments or defer payments.
• Increased Conversions: Attracts customers who prefer flexible financing options.
• Global Presence: Available in 17 countries, supporting cross-border sales.
• Easy Integration: Plugins and APIs for major e-commerce platforms.

Pricing:

Klarna's pricing for merchants typically includes a transaction fee and a variable percentage based on the order value. The exact fees can vary depending on the country, the specific Klarna product used, and the merchant's agreement with Klarna. Merchants are encouraged to contact Klarna directly to receive a customized pricing proposal.

Ideal For: E-commerce businesses looking to offer customers alternative financing options to boost sales.

9. Adyen

Adyen is a global payment company offering a single platform to accept payments anywhere in the world, providing advanced tools for e-commerce growth.

E-commerce Advantages:

• Unified Commerce Platform: Integrates online, mobile, and in-store payments.
• Global Payment Methods: Supports over 250 payment methods and 150 currencies.
• Advanced Fraud Protection: Utilizes data analytics for risk management.
• Scalable Solution: Designed to grow with your business, handling high transaction volumes.

Pricing:

Adyen uses an interchange-plus pricing model. For Visa and Mastercard transactions, the cost is the interchange fee plus a processing fee of $0.12 per transaction. There is also a monthly minimum invoice amount of $120, which goes towards your processing fees. Additional fees apply for other payment methods, and rates may vary by country and transaction volume. Businesses should contact Adyen for a detailed quote tailored to their needs.

Ideal For: Large e-commerce enterprises requiring a scalable, global payment solution with advanced features.

10. Payoneer

Payoneer enables e-commerce businesses and professionals to send and receive payments globally, offering multi-currency accounts and cross-border transactions.

E-commerce Advantages:

• Global Payment Solutions: Facilitates payments in over 200 countries and 150 currencies.
• Mass Payouts: Allows businesses to pay multiple recipients simultaneously, ideal for marketplaces.
• E-commerce Integration: Works with platforms like Amazon, Walmart, and eBay.
• Multi-Currency Accounts: Receive payments in various currencies and withdraw funds locally.
• Competitive Exchange Rates: Offers lower fees for currency conversions compared to traditional banks.

Pricing:

Payoneer's fees vary based on the services used. Receiving payments from marketplaces and networks is often free. For international client payments via billing service, Payoneer charges 3% for credit card transactions and 1% for eChecks (ACH bank debit). Withdrawing funds to your local bank account incurs a fee of up to 2% above the mid-market rate for currency conversions. There are no monthly or setup fees.

Ideal For: Businesses engaging in international commerce and needing efficient cross-border payment solutions.

11. Skrill

Skrill is a digital wallet provider that offers low-cost international money transfers and supports a variety of online payment options, making it suitable for e-commerce businesses with global customers.

E-commerce Advantages:

• Global Coverage: Operates in over 120 countries with support for 40+ currencies.
• Quick Checkout Process: Simplifies the payment experience for customers.
• Accepts Multiple Payment Methods: Supports credit/debit cards, bank transfers, and local payment options.
• Fraud Management Tools: Provides security features to protect against fraudulent transactions.
• Cryptocurrency Support: Allows businesses to accept payments in cryptocurrencies.

Pricing:

Skrill's merchant fees typically start at 2.90% plus €0.29 per transaction, but fees can vary based on transaction volumes and the merchant's country. There are no setup fees, but additional services like chargebacks may incur extra costs. For international transactions, currency conversion fees of 3.99% apply.

Ideal For: E-commerce businesses with international customers seeking diverse payment options and cryptocurrency support.

12. Helcim

Helcim offers transparent and affordable payment processing solutions tailored for small to medium-sized e-commerce businesses, with an emphasis on customer service and ease of use.

E-commerce Advantages:

• Transparent Interchange Plus Pricing: Provides detailed cost breakdowns without hidden fees.
• Volume Discounts: Automatic discounts applied as your sales volume increases.
• Free E-commerce Tools: Includes a hosted payment page, product catalog, and integrations with shopping carts.
• Multi-Currency Processing: Accepts payments in various currencies.
• Customer Management: Features like recurring payments and customer portals enhance user experience.

Pricing:

Helcim operates on an interchange-plus pricing model, with rates varying based on card type and transaction method. For example, keyed-in transactions have a processing fee of 0.50% plus $0.25 above interchange rates. There are no monthly fees, no setup fees, and no cancellation fees. As your monthly processing volume increases, Helcim automatically lowers your rates.

Ideal For: SMEs seeking affordable and transparent pricing with excellent customer service and e-commerce tools.

Frequently Asked Questions

Here we have answered some of the most common questions in relation to PayPal alternatives:

Why should e-commerce businesses consider alternatives to PayPal?

While PayPal is widely recognized and trusted, alternatives may offer lower fees, better integration with specific platforms, advanced fraud protection, or additional features like customizable checkouts and flexible payment options that can enhance the customer experience and increase conversions.

How do transaction fees impact my e-commerce business?

Transaction fees can significantly affect your profit margins, especially for businesses with high sales volumes or low-margin products. It's essential to compare the fees of different payment processors and consider any additional costs like monthly fees or chargeback fees.

Can I integrate multiple payment processors into my e-commerce store?

Yes, many e-commerce platforms allow you to offer multiple payment options at checkout. This approach can cater to customer preferences and increase the likelihood of completing a sale. However, managing multiple processors may add complexity to your accounting and reconciliation processes.

How important is offering multiple payment methods to customers?

Providing various payment options can improve customer satisfaction and reduce cart abandonment rates. Customers are more likely to complete a purchase if their preferred payment method is available, whether it's a credit card, digital wallet, or buy now, pay later option.

What should I consider regarding security and fraud protection?

E-commerce businesses are prime targets for fraudulent activities. Selecting a payment processor with advanced security features like encryption, tokenization, and fraud detection tools is crucial to protect your business and customers. Compliance with PCI DSS standards is also essential.