3 Best PayPal Alternatives to Handle Payment Processing

With more than 20 years of experience managing online payments, PayPal is a popular choice for businesses everywhere. It boasts robust features that allow business owners to make the most of processing payments from customers.

At present, there are hundreds of millions of active users. As such, it’s unlikely that PayPal is going anywhere anytime soon. With that said, that doesn’t mean there aren’t worthy contenders for you to consider implementing into your business.

In this guide, we’ll show you the best PayPal alternatives, so you’ll know what your options are for collecting payments. By knowing the differences among the various platforms, you can be sure to invest in the best one for your needs.

What Is PayPal?

Before we start, it’s important to understand just what it is that PayPal does. As a digital wallet, PayPal lets you store credit and debit card information to your account. In doing so, you can easily make payments online. 

What’s more, PayPal also lets you pay with your stored bank account information. By having these different payment methods stored in your account, you can easily access them to pay for things when shopping online.

When you use PayPal to manage your various payment methods, you’re getting incredible security and speedy transactions. Security is especially important anytime you’re processing payments over the internet. 

With cyber-thieves becoming increasingly clever in how they siphon money from users, the need for robust security is at an all-time high. As such, you want to make sure that any alternative you choose has equally effective security measures built into it.

We made sure that the options we included offered incredible security, so you can trust that both you and your customers will be protected.

PayPal isn’t just for buying things. It also works the other way around, allowing businesses to collect payments from their customers. If your business is set up to accept PayPal payments, you will have significantly increased your reach.

So effective is PayPal’s business features that nearly 20 million merchants currently rely on it for their online payment processing needs.

With so many excellent features, it’s going to take some mighty impressive competition to contend with PayPal. But that’s exactly what we’ve found for you. Let’s look at each of our top picks so you can better decide which service fits your needs.

Best PayPal Alternatives


Skrill is actually a lot like PayPal in that it has clients in the United States and Europe. As such, Skrill is particularly valuable if you spend money in both markets. Also similar to PayPal is Skrill’s security. When you sign up for Skrill, you can look forward to chargeback protection and fraud management.

There’s also a simplified one-tap payment option that allows repeat customers to quickly and easily pay for your products or services without the need to re-enter their credentials. You’ll also benefit from being able to collect multiple currencies for greater customer support.

Creating an account with Skrill is a cinch, allowing you to quickly start using the platform. Although much of Skrill’s format and features are similar to PayPal, you’re likely better off choosing Skrill if you do more international business transactions.

As a business owner, you’ll appreciate Skrill’s pricing. Sending money to an overseas bank account is completely free, which, once again, makes Skrill more suitable for international business dealings. You can also start an account with Skrill at no cost.

With an active account, you use your wallet online, receive money, unload your funds, and send money. As long as you make a minimum of one transaction a year, your Skrill account will remain open and free to use. 

If you fail to meet this requirement, you’ll be charged a paltry $5. You’ll want to be aware of some other fees, such as withdrawing money from a bank account. This comes at a cost of $5.50, which is a bit steep compared to other options.

If you opt for Skrill’s Prepaid Visa card, there’s an annual fee of $10. And finally, all international transfers will charge you on a per-transaction basis at 4.99%. 


Square is undoubtedly one of the most widely-used payment processing tools for small businesses. If you don’t currently use it yourself, there’s a good chance that your own payments have been processed through Square while shopping.

What makes Square such a hit among business owners is its ease-of-use and affordable fees. There isn’t a convoluted pricing structure that contains hidden fees or charges. Everything is laid out on Square’s website for you to see.

There also isn’t a long-term contract that you’re locked into. As such, you can choose to use Square as often or as seldom as you like. The user-friendly design and interface make Square a big hit among business owners.

You don’t need developer tool knowledge to customize Square, either. And this is one of the benefits of Square that makes it stand out from the competition. You can easily customize this card processing service to match your business model.

Depending on the plan you choose, you can remove all Square logos from the online payment portal, making it all about your business and less about Square. 

And then there are the fees that Square charges. Whereas most others charge 2.9% + $0.30 per transaction, Square charges just 2.6% + $0.10. This might not seem like a lot on paper, but it quickly adds up over time. This fee applies to all contactless and swiped payments. Manually keyed-in entries are a bit pricier, costing 3.5% + $0.15 per transaction. 

Square is also known for its incredibly robust security, which is a must-have feature anytime you’re dealing with credit card transactions. As such, you and your customers can rest easy knowing that all transferred data is safe and secure at all times.


We’ve spoken of Stripe before, but its benefits and features bear repeating. In what is routinely praised as the best online credit card processor for businesses, Stripe isn’t short on accolades. Thanks to its large footprint and bountiful features, Stripe is sure to have something you can use – as long as you are familiar with developer tools.

Stripe is different from most other card processing services in that it allows for robust customization. However, you need to know how to use API tools in order to take full advantage of Stripe’s offerings. If you aren’t concerned with such things, Stripe likely isn’t for you.

With Stripe, you can manage reports, reconciliations, choose from several payment options, optimize your revenue, and much more. Stripe also supports third-party integration, making it a versatile tool for business owners with developer knowledge and skills.

Like other credit card processing services, Stripe charges the typical 2.9% + $.030 per transaction. This seems to be the going rate at present, so there’s not much wiggle room here. There’s also an option that allows you to fully customize Stripe with your business model.

You can build on Stripe to be capable of accepting payments as designed by your business model. But again, you’re going to need a developer on your team who can make these adjustments for you. Of course, you can always hire an outside source to handle the API aspect of Stripe, but the cost to do so could become quite expensive.

Therefore, it’s important to weigh the benefits of Stripe and consider whether you truly need its customization features. If you don’t, you’re likely better off saving your money and going with a credit card processor that provides exactly what you need and little more.


Each of these alternatives is a viable contender for your consideration. Before you decide on a credit card processing service, it’s important that you think about what kind of features you need to provide to your customers.

You’ll also need to consider what your business needs most to operate successfully. As we pointed out, there are some services that offer features you may never need or use. As such, you could be paying more for something that you can get cheaper elsewhere. 

Fortunately, with any of the above alternatives, you can count on providing your business and your customers with security and ease-of-use. At the end of the day, those are two of the most important features a credit card processing service can offer.

We hope you enjoyed our guide and found it helpful in finding the best service for your business. If you would like to learn more tips on small business, we encourage you to check out our blog page. You’ll find a wide range of topics that are sure to benefit you.

If you have any questions that we can help you with, we invite you to contact us. We will be more than happy to assist you in your business ventures and look forward to serving you.






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