PayPal has become the go-to payment service for millions of consumers around the globe. But it’s also becoming less attractive to businesses because of its high fees and lack of support for certain industries. What should you consider before switching away from PayPal?
PayPal was founded in 1998 and became the largest e-commerce payments company in the world. Today, it processes billions of dollars worth of transactions every year.
Which Payment Processor Is Right for My Business?
If you are looking for a way to accept credit card payments online, then you may be interested in using one of these popular options: Stripe, Braintree, Paypal or Square. Each option comes with pros and cons that will help guide your decision making process. The following is an overview of each platform, including their pricing, features, and what industries they work best with.
Stripe vs. PayPal – Which One Should You Use For Your Next Project?
The first thing you need to know about Stripe and PayPal is that they have very different business models. While both companies offer similar services, there are some key differences between them.
The most obvious difference is the fact that PayPal charges a transaction fee on top of the total amount charged by the merchant. On the other hand, Stripe does not charge any additional fees. This means that if you use Stripe, you can keep 100% of all the money you collect.
Another major difference is the fact that while PayPal supports almost every industry, Stripe only works with select ones. For example, you cannot use Stripe to accept payments for real estate, stocks, bonds, insurance, mortgages, loans, or anything else related to personal finance. If you want to make sure you can accept payments from customers in those specific areas, you should look into another solution.
In addition to this, PayPal offers more than just a simple payment gateway. It also provides many other tools designed to help merchants run their entire business. These include marketing solutions, analytics tools, fraud protection, and much more.
On the other hand, Striep only offers a payment gateway. There are no other tools available to help merchants manage their business. As such, you would have to build everything yourself.
So which one do you think is better for your business? Weighing the pros and cons of both platforms is important when deciding whether to use PayPal or Stripe.
Basic Features of Payment Processors
When choosing a payment processor, you want to find one that suits your needs. Fortunately, there are several basic features that you should look for in order to ensure you get the right fit.
First, you want to make sure that the provider offers PCI compliance. This ensures that your data remains secure at all times. In addition, it helps protect your customers’ sensitive information.
Second, you want to choose a payment processor that offers multiple ways to pay. This includes offering direct deposit, check processing, ACH transfers, and others.
Third, you want to make certain that the company has good customer service. After all, if you ever have problems with your account, you want someone who is willing to assist you as quickly as possible.
Finally, you want to make absolutely sure that the payment processor offers 24/7 support. Even though you might not need immediate assistance during normal business hours, you still want to be able to reach out to someone whenever you need help.
What Is PayPal’s Biggest Competitor?
PayPal is currently the world leader in online payments. However, it faces stiff competition from its biggest competitor: Amazon Payments.
Amazon Payments was founded back in 1998. Since then, it has grown into an extremely popular platform for e-commerce businesses. Today, it boasts millions of active users around the globe.
While PayPal started off as a way to allow people to send money to each other over the internet, Amazon Payments was built specifically for the purpose of selling products online.
As a result, Amazon Payments allows sellers to sell directly to consumers without having to go through any middlemen like banks or credit card companies.
As you can see, Amazon Payments is a great alternative to PayPal. Not only does it offer similar services, but it also gives sellers access to a huge number of potential buyers.
However, Amazon Payments is not perfect either. While it may work well for some types of businesses, it doesn’t always suit others.
For example, if you plan on accepting donations, Amazon Payments isn’t ideal because it requires sellers to charge sales tax. On top of that, it doesn’ t offer the same level of security as PayPal.
Why Should You Use PayPal?
If you own a small business, chances are you already know how important it is to accept payments online. Unfortunately, most small businesses don’t have the resources necessary to set up their own website.
That’s where PayPal comes in. The company provides a simple solution that allows anyone to create a free account. Once you sign up, you can start accepting payments immediately.
In fact, PayPal is so easy to use that even nontechnical individuals can complete the process within minutes. As a result, it’s no surprise that PayPal is used by more than 100 million people worldwide.
Of course, this popularity means that you will face stiff competition when trying to attract new customers. Luckily, PayPal is designed to handle that sort of thing.
The company offers a variety of different tools that let you customize your site to fit your needs. For example, you can add special features such as gift cards or prepaid debit cards.
You can also create custom landing pages that give visitors the option of paying using PayPal. In addition, you can include links to social media platforms like Facebook and Twitter.
Finally, PayPal lets you track every single transaction made through your account. That way, you can keep tabs on which items are selling best and what type of promotions are working best.
All in all, PayPal is one of the easiest ways to accept payments online. It’s also one of the most secure options available. If you’re looking for a reliable payment processing service, PayPal should definitely be at the top of your list.
Best PayPal Alternatives in 2022
There are several reasons why you might want to switch away from PayPal. For example, you may be concerned about privacy issues or you may want to avoid paying too much in transaction fees. Whatever your reason, here are some of the best alternatives to PayPal.
1. Stripe
Stripe is a popular alternative to PayPal that focuses on simplicity and ease of use. It allows users to accept credit cards online without having to set up an account. You can integrate Stripe with Shopify and create custom checkout pages using their simple API.
2. Braintree
If you sell physical products, then Braintree is one of the most popular options for accepting credit card payments. They offer a free plan that lets you start accepting credit cards as soon as today. Their plans start at $45 per month.
3. Square
Square is another option if you deal with small business owners. The company offers a free app that makes it easy for anyone to process credit cards.
4. Amazon Payments
Amazon Payments is designed specifically for merchants who sell items through Amazon.com. There are no monthly fees and they have excellent customer service.
5. Google Wallet
Google Wallet is a mobile payment system developed by Google. It works with Android devices and iPhones. If you already have an active debit or credit card, you can sign into your Google Account and link it to your phone number. This means that you don’t need to enter any security codes when making purchases.
6. Apple Pay
Apple Pay is yet another way to pay with your iPhone. Just open the App Store, tap “Purchases,” and select “Make Payment.”
7. Bank Transfer
Bank transfers are still a common method used to make international payments. Banks like Western Union charge a flat fee based on how much money is being sent.
8. Bitcoin
Bitcoin is a type of digital currency that uses peer-to-peer technology instead of banks. Transactions take place between two parties directly rather than going through financial institutions.
9. FastSpring
FastSpring is similar to PayPal in that it provides a platform where people can buy things online. However, it doesn’t require users to register an account. Instead, they just provide billing information once and then everything happens automatically.
10. WePay
Wepay is great for those who prefer to stay within the United States. It’s very easy to get started with them. All you need is a bank account and a credit card.
11. Zelle
Zelle is a newer alternative to traditional methods of sending money. It’s owned by major banks including Wells Fargo and JPMorgan Chase. It’s available through ATMs, apps, and websites.
12. Transferwise
Transferwise is a web application that helps people send money internationally. It’s especially useful for large transactions.
13. CashApp
CashApp is different than other payment platforms because it’s strictly for sending money. You can transfer money to friends, family members, and even businesses in the form of ACH (bank) transfers.
14. Payline
PayLine is another way to send money quickly via SMS text message. It’s perfect for sending money across borders.
15. Square Cash
Square Cash is a mobile point of sale app that allows sellers to accept cash payments. It’s best suited for smaller vendors and freelancers.
16. Dwolla
Dwolla is a global network that enables money transfers through ACH. It’s also known as “reverse deposit capture.”
17. Venmo
Venmo is a social media app that enables its users to send money to each other. It’s a good choice for paying back debts or splitting bills among roommates.
18. LocalBitcoins
LocalBitcoins is a website that connects individuals looking to exchange goods and services locally. By using this service, both parties can track their transaction from beginning to end.
19. Paxful
Paxful is one of the oldest cryptocurrency exchanges out there. Because of this, they have built up a solid reputation over time. The site offers market makers to help ensure liquidity.
20. ShapeShift
ShapeShift is a cryptocurrency exchange that enables its users to trade instantly without revealing personal identity.
21. Cryptopia
Cryptopia is a New Zealand-based crypto exchange that was founded in 2013. It currently has over 1 million registered users and over 250,000 active daily users.
22. Bittrex
Bittrex is a US-based crypto exchange that launched in 2014. One of the biggest advantages of using Bittrex is its wide range of altcoin options.
23. Upbit
Upbit is a Korean-based crypto exchange that supports more than 1300 cryptocurrencies and 100 fiat currencies.
24. HitBTC
HitBTC is a Hong Kong-based crypto exchange that specializes in providing trading facilities for experienced traders.
25. Huobi
Huobi is one of the largest Bitcoin exchanges globally. Founded in China but now based in Singapore, it keeps its clients happy by offering a variety of tools such as charts and order books.
26. OKEx
OKEx is another Bitcoin exchange based in China. With offices all around the world, it’s become a favorite exchange for crypto enthusiasts.
27. Gemini
Gemini is an American company that offers various financial products, some of which include Bitcoin and Etherium futures contracts.
28. Coinbase
Coinbase is one of the most popular wallet providers in the industry. Their platform makes storing, buying, and selling digital currency easy and safe.
29. Kraken
Kraken is primarily focused on Bitcoin, Ethereum, Ripple, Litecoin, Monero, and USD Coin. It’s one of the first brokers to offer Bitcoin CFDs.
30. Poloniex
Poloniex is a former top 10 cryptocurrency exchange called Top10exchanges until it got hacked twice in 2018. Its platform is very simple to use for beginners.
31. Bitfinex
Bitfinex focuses mainly on ERC20 tokens and aims to be a leader in blockchain asset trading.
32. Okex
Okex is a large Chinese cryptocurrency exchange that allows people to buy Bitcoin directly with CNY.
33. ZBG
ZBG is a decentralized finance protocol enabling access to credit for micropayments.
34. Circle
Circle provides a way for consumers to pay friends and family anywhere cash becomes king.
35. Blocktrade
Blocktrade is a peer-to-peer bitcoin marketplace that lets people sell items online.
36. Changelly
Changelly is a web-based application that enables people to convert cryptocurrency at will.
Conclusion
The best alternative to PayPal is obviously going to depend on your own situation. If you are just starting out and need something simple then we would recommend either Coinbase or BitPay. Both of these platforms make paying others easy and safe. However, if you want to start accepting payments from larger companies then Stripe is definitely our recommendation.
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