25 PayPal Alternatives: Choose Your Ideal Payment Processor
25 PayPal Alternatives: Choose Your Ideal Payment Processor
As payment processors go, PayPal is by far one of the most popular, but is it the best? In this article, we highlight the alternatives to PayPal that could better suit your business and cost you less.
Payment processors manage online financial transactions. They act as a mediator between your customer, their funds and your bank, authenticating and securing transactions. Choosing the right one is essential to make online purchasing frictionless for your customers and quick and secure for your business.
Why Not Use PayPal?
PayPal was the most popular online payment method in the UK in 2019. However, despite its popularity, PayPal comes with a few substantial drawbacks.
- It adds friction to the customer payment journey by diverting them away from your website.
- The customer support department can be ineffective and frustratingly difficult to contact.
- There are hefty fees for chargebacks.
- PayPal’s Seller Protection doesn’t cover digital goods.
- Funds can take up to 4 days to clear.
- Account suspension can happen at any time, without notice.
What to Look for in Payment Processors
A good payment processor is critical to safely manage transactions and deliver a seamless customer experience. With so many on offer, it can be difficult to choose the right one for you. Most PayPal alternatives will provide online payment portals, currency conversion, mobile payments, direct debit bank transfers and merchant account dashboards. But these are not the only features to look out for. Before you decide on the one for you, check it against the following criteria:
- Security: A customer’s financial information in the wrong hands can spell disaster for your finances and your business’s reputation. Security is critical. The Payment Card Industry Data Security Standard (PCI DSS) is a set of security standards for businesses that process credit card data. Make sure the payment processor you choose is compliant and, ideally, has been awarded the highest security rating.
- Compatibility & Integration: Your payment processor needs to be compatible with the technology you currently use, whether that’s your eCommerce store or accounting software. Payment processors that integrate well will be easier to introduce to your workflows.
- Pricing Structures: The right pricing structure for you will depend on how your business operates. Most payment processors offer a fixed-fee or variable percentage rate pricing model. Work out which will be financially better for you in the long run before committing. Look out for any hidden fees and choose a provider that offers the flexibility to scale up or down in response to business needs.
- Comprehensive Support: Should anything go wrong, getting in touch with a dedicated account manager or support team is often the quickest way to get your payment processing back up and running. Choose a payment processor that has good support team availability with international resources should you need them.
The Top 25 Alternatives to PayPal
We’ve reviewed market offerings and come up with a list of the top 25 PayPal alternatives. We have broken them down into categories so that you can easily navigate to what is most important for your business.
Table of Contents
PayPal Alternatives for International Payments
Stripe offers cardholder support in over 135 countries and provides local payment methods to improve customer experience wherever your business operates. It only requires a single integration to accept, store and manage money globally.
They are certified to the highest security compliance levels and are currently used by major brands including Deliveroo, Booking.com and ASOS Market Place.
Pricing: Integrated, pay-as-you-go pricing set at 1.4% + 20p charge for European cards and 2.9% +20p for non-European cards. There is a customisable payment option for businesses with unique models or high payment volumes.
More than 20,000 companies in over 180 countries use 2Checkout. With their ‘Avantage Monetisation Platform’, you can pick and choose the services you want, scaling up to adapt to new markets whenever you need to. They provide coverage across 200 countries and promise 24/7 customer support. Adhering to complex international regulations is made significantly easier with their guidance on global finance laws.
Pricing: 2Checkout offers 3 different packages:
- 2Subscribe, for subscription businesses, charges 4.5% + 35p per successful sale.
- 2Sell, charges 3.5% +25p per successful sale.
- 2Monetize, for selling digital goods, charges 6.0% + 45p per successful sale.
With the tagline, ‘Your passport to global growth’, Payoneer’s focus is firmly on making global transactions effortless. They provide receiving accounts in multiple currencies so payments can be collected quicker. You can obtain and spend your foreign earnings without needing to convert to GBP. Members of the Payoneer network can transfer money between them for free, with funds clearing in under 2 hours.
Pricing: 3% on all credit card transactions or 1% for ACH Bank Debit (USD)
TransferWise uses real exchange rates to make international transfers cost less. On average, their rates are 8x cheaper than UK high street banks and an incredible 19x cheaper than PayPal. There are no hidden fees, with upfront costs kept to a minimum. Business customers have access to an account as well as a TransferWise Business Mastercard. The TransferWise Business Account also seamlessly integrates with Xero.
Pricing: It’s completely free to set up a TransferWise for Business account. There is a fixed fee to convert between currencies. To work out the cost of any transaction, use the TransferWise pricing calculator.
With Skrill for Business, you can enable over 100 payment methods with a single integration. From one account, you can handle more than 40 currencies for easier international payments. Their multi-lingual customer care provides the support you need, wherever you’re based. With the 1-Tap features, your customers can manage repeat payments with a single tap. Customers can pay directly from their bank account without leaving your website using Rapid Transfer that supports 3000+ banks worldwide.
Pricing: Business customers have to contact Skrill to receive further payment information.
FIS (formerly WorldPay)
With a reach of 126 currencies across 146 countries, FIS (formerly WorldPay), operates at an impressive scale and is trusted by 8/10 of the top internet, retail and airline companies globally. They offer a broad array of solutions for B2B and B2C needs, with tailored options for Large Enterprise Business and Small and Medium Business customers. Providing face-to-face solutions as well as multichannel payments, FIS have everything covered.
Pricing: With so many products on offer, FIS offer bespoke pricing. However, they can be an expensive option for low-volume merchants.
Mobile Payment PayPal Alternatives
Google Pay gives Android users an easy way to pay with their phone across apps, websites and in stores. It’s easy for customers to store all of their loyalty cards, rewards and passes all in one place. Google Pay for Business uses the most advanced security options available. Merchants receive a unique, encrypted number for each customer, rather than their actual card number.
Pricing: There are no merchant fees that come with Google Pay, however, it does charge standard credit cards fees.
Offering the same capabilities as Google Pay, but for iOS users, Apple Pay makes it easy for customers to make contactless payments with their devices. Using the ‘Buy with Apple Pay’ button, Apple users can also make app purchases and online payments with a single tap or glance at their phone, without re-entering their card details.
Apple Pay is more secure than traditional credit, debit and prepaid card payments. Every transaction on an iOS phone requires Face ID, Touch ID or a passcode, therefore multifactor authentication is a given. When customers pay with Apple Pay, you don’t have to process their card details through your systems.
Pricing: Apple Pay works with most payment providers and card issuers, there is no charge for businesses.
Dividing their solutions into in-store, mobile and online solutions, Payline is a great all-round payment processor. However, their mobile offering especially is simple, easy to adopt and competitively priced. The mobile reader and app allow you to take payments wherever you or your customers are. All their processes are secure, using tokenisation to encrypt customer payment information.
Pricing: For ‘swiping in person’ payments, there is a 0.2% charge + 10cents (~7.5p) fee per transaction. When credit cards aren’t present, including telephone, mail, online and mobile payments, it’s a 0.4% + 20cents (~14p) charge per transaction. You can use their online tool to work out your actual monthly costs.
Simple, yet effective, PaySimple is a payment processor that provides everything you need without the expensive extras. Use it for online, in-store and mobile transactions as well as one-off, recurring and pro-rated payments. The PaySimple mobile app allows you to operate your business wherever you like. If you already have a mobile app, the PaySimple AppConnect provides payment integration.
Pricing: There is a 2.49% charge per transaction + monthly fees.
PayPal Alternatives for Excellent User Experience
Any customer with an Amazon account can use Amazon Pay without leaving your website. Amazon customers will not need to create an account on your site or enter their card details, improving your retention and user experience. It’s a highly secure option, as Amazon’s fraud detection and prevention services will be available to you, as well as automatic customer verification.
Pricing: 2.7% charge +30p. Businesses with monthly transactions over £50,000 can apply for a payment volume discount.
Simplify your customer payment process with the Square Pay feature that saves payment information for future purchases for faster checkout times. Square also provide several hardware solutions that make payments in any setting easy for you and your customer. They offer excellent real-time reports and data analytics so you can keep on top of your cash flow.
Pricing: There’s a 1.75% in-person transaction fee, a 1.9% fee for European card online transactions, 2.9% fee for non-EU online card payments and a 2.5% manually keyed in transaction fee. You pay for Square hardware individually, with the Square Reader costing just £19.
Klarna is gaining increasing popularity with its focus on consumer convenience. It makes it easy for customers to purchase now and pay later through instalments. Merchants still receive the full, upfront payment for goods upon checkout, which is covered by Klarna. They provide out-of-the-box services that have been pre-integrated with leading eCommerce platforms as plugins or modules.
Pricing: There aren’t pricing details on the website, instead, businesses have to contact Klarna directly.
Delivering online, recurring, mobile payments and more, Payline by Monext has a strong focus on the customer experience. A good option for smaller businesses, they offer tailored solutions to make payment processes as frictionless as possible for your customers. Keep the payment page integrated onto your website and help your customers quickly spot card data entry errors.
Pricing: They offer 3 monthly packages starting at €15 (~£13.40) per month. Look out for additional fees, all listed here.
Secure PayPal Alternatives
Formerly Sage Pay, Opayo is run by parent company Elavon and is the most reliable payments provider in the UK. Their processor seamlessly integrates with Elavon’s Financial Services DAC Accounting software so that you can get paid faster. Advanced fraud-screening tools come as standard, regardless of payment type and there’s a 24/7 UK based support team to help if you do have any issues.
Pricing: They offer 4 different monthly plans, starting as low as £5 and costing up to £27 for the more comprehensive package.
The Advanced Fraud Detection Suite lets account users set 13 different fraud filters, which can help to identify and prevent fraudulent transactions. You can limit the number of daily transactions per customer to flag high-volume fraud, block activity based on IP address, validate credit card information before processing and more. Authorize.Net accepts multiple payment types, provides Automated Recurring Billing and comes with an invoicing tool.
Pricing: The All-in-One option has no set-up fee, charging $25 (~£18.75) per month, plus 2.9% + 30 cents (~22p) per transaction.
For SaaS businesses, FastSpring delivers a full-service, global eCommerce platform. It manages transactions in more than 200 regions, with over 20 currencies and 15 languages supported. FastSpring boasts the highest security rating available as a PCI Level 1 Service Provider. A 15-factor eCommerce fraud detection algorithm protects your store from fraudulent activity without damaging the customer experience. They also handle your international tax calculations and payments and regulation compliance worldwide.
Pricing: FastSpring provides custom pricing, you can use their form to get a quick price.
Bolt is a lightweight modal that sits on top of your eCommerce platform. You can use it as your all-in-one payment solution provider or integrate their 1-click checkout tool with your existing payment provider. PCI-DSS compliant, Bolt uses tokenisation to keep customer data encrypted through the entire payment process. The single-click checkout aims to reduce customer abandonment without compromising on security. Keeping on top of fraud is Bolt Approve, an advanced fraud detection and protection engine. They are so confident of its capabilities that they offer 100% coverage on fraudulent chargebacks.
Pricing: The Bolt Checkout Experience platform charges a percentage of sales that is set depending on the size of the customer. To find out more about specific pricing, contact the Bolt sales team.
PayPal Alternatives Providing the Best Customer Insights
A popular option for small businesses, Thryv provides multiple features to help you process payments, gain valuable consumer insights and better serve your customers. You can use it to easily build quotes, estimates and invoices which customers can then pay instantly. Alongside payment processing, Thryv’s automatic data enrichment feature collates information on your clients to help you get to know them. There’s a dedicated Client Portal to ensure smooth communication.
Pricing: Thryv has a custom-pricing model.
GoCardless makes it easy to collect regular payments, including subscription charges, invoices and instalments from customers. Customers only need to enter their payment details once and you can then collect all subsequent payments directly from their bank account. For every payment Enterprise businesses attempt to take, 97.5% of them are successful. If a payment fails, the Success+ feature schedules payment retries on the best day and time based on individual customer data. With this tool, you can recover up to 76% of failed payments.
Pricing: For UK and Eurozone payments there is a 1% + 20p charge per transaction, with a £4 maximum charge. An additional 1% fee applies to transaction values about £2000. International payment charges are 2% + 20p per transaction, this includes currency conversion at the real exchange rate. They also offer monthly packages for as little as £50 per month that offer additional customisation options.
Adyen makes it easy for businesses to get to know their customers. The only payments platform that fully supports unified commerce, Ayden delivers POS, eCommerce, fraud prevention and customer data insights. Customer payment data from all sales channels and geographies is held in the same system, meaning that you can recognise your customers however they are shopping. This makes for a smoother, more consistent customer journey, personalised across all sales channels.
Pricing: Ayden charges a 10p processing fee for all payments. Other transaction charges vary depending on the payment method used. For a full breakdown click here.
PayPal Alternatives that Integrate with Business Software
The most compatible choice for any Shopify eCommerce stores, Shopify Payments is incredibly simple to set up. It comes as standard with all Shopify accounts; therefore, existing customers simply have to turn it on to begin accepting payments. Their checkout options are convenient for all international customers with all common payment types covered as well as local currencies.
Pricing: Basic Shopify costs $29 USD (~£21.72) per month, plus 2.2% + 20p per transaction. Click here for further pricing breakdown.
BlueSnap integrates with hundreds of business platforms, so you won’t have to change a thing. QuickBooks, Xero and Salesforce are all included, making it easy to automate transactions. Conversion is easy with over 100 shopper currencies and payment types accepted.
Pricing: The pay-as-you-go pricing charges 1.25% + 20p per successful card transaction and there is also a Customised Pricing option.
If you already use QuickBooks for your accounting needs, their integrated payment solutions are a great option. You can create and send custom invoices. Customers can pay instantly via credit or debit card using the ‘Pay’ button on their invoice. QuickBooks automatically balances your books and matches payments to invoices. Beyond invoices, QuickBooks partners with GoCardless for recurring payments and iZettle for point of sale purchases.
Pricing: Credit and debit card payment rates have recently lowered to 1.45% + 30p per transaction. They offer monthly packages that cover all of their services.
iZettle provide ample solutions for in-person and online payments, with multiple POS options, card readers, invoices and payment links. They can also integrate with your existing eCommerce, accounting and POS software.
Pricing: Costs vary depending on payment type. Card transactions have 1.75% fee, invoice transactions incur a 2.5% charge and payment link transactions have a 2.5% fee.
Pricing Comparison Table
Payment processors can come with a wide range of extras, some you may not want or need. If, for you, it boils down to price, use our pricing comparison table to compare options at a glance. Transactions fees and charges included are based on the lowest tier pricing for online payments. Some companies opt solely for a monthly pricing scheme or custom pricing, where this is the case we have included the lowest monthly cost available.
|Payment Processor||Monthly Fee||% Charge per Transaction||Fee per transaction||Custom Payment Option?|
|TransferWise||0||0.00%||Fixed currency conversion fee||No|
|Google Pay||0||Standard credit card fees||Standard credit card fees||No|
|Payline by Monext||Monthly plans starting from £13.4||–||–||–|
|Opayo||Monthly plans starting from £5|
|Authorize.Net||Monthly Packages, all-in-one option £18.75||2.90%||£0.22||Yes|
|GoCardless||Monthly packages available, starting from £50||1.00%||£0.20||Yes|
|QuickBooks by Intuit||Monthly packages start at £8||1.45%||£0.30||Yes|
What do Payment Processors Add to Your Business?
There is a wide range of payment processors available, each offering something slightly different to the next. The right payment processor can make customer purchases seamless, international transactions quick and easy and can even integrate with your existing software. A good payment processor should make life easier for not only your customers but you and your team. What works will vary by industry, so assess your business and your customers’ needs before making your choice.