In 2021, PayPal accounted for 22% of all online transactions and its mobile payment volume was $227 billion. Despite its growth, PayPal is far from monopolizing the industry.
One of PayPal’s advantages is its large multi-service platform with diverse offerings that many other digital payment systems lack. PayPal (PYPL) offers the following features:
• PayPal lets you pay for your favorite items at millions of online stores in the US and 203 global markets.
• PayPal allows recurring payments on monthly bills and subscriptions.
• PayPal is free to use when donating or paying for a purchase or any other type of commercial transaction, unless it involves currency conversion.
• PayPal earns 3.9% on every merchant payment transaction.
However, PayPal is not alone in developing digital money as consumers turn to online payment systems in record numbers each year.
Here are 10 popular alternatives to PayPal:
• Skrill merchant fees range from 2.5% to 4%.
• Skrill accounts not used for 12 months are subject to a $5 fee.
• Skrill has a limited number of merchant acceptances and PayPal is available at almost all major retailers.
• Skrill is a good option because there are no deposit fees, no withdrawal fees, and sending and receiving money is free.
• Payoneer, like PayPal, operates in over 150 countries.
• Payoneer offers a free account and allows withdrawals directly to your bank account. The other account is a prepaid card which is only available to individuals and costs $29.95 per month.
• Payoneer charges a $1.50 transaction fee for local bank transfers.
• Payoneer also provides a service called Billing Service which allows a business to set up customer payments for a fee of 3% for credit cards and 1% for debit cards.
Google Pay Submit
• Google Pay Send can attach payments to Gmail messages.
• There are no setup or cancellation fees for Google Pay Send, and it’s available for Android and iPhone.
• Google Pay Send enables a variety of tools to manage your business and integrate loyalty programs and other benefits.
• This service is only available to businesses based in the United States and Canada, but payments can be made from any source.
• Fees are very clear; Stripe charges 2.9% plus 30 cents on each transaction.
• The payment process for Stripe is self-hosted and occurs on the business owner’s site rather than sending customers to an external site such as PayPal.
• The Stripe network automatically deposits funds into an external bank account.
• Venmo is a payment option with several apps and websites, including Uber and GrubHub.
• When you withdraw money from your Venmo balance, it may take a few business days for the money to be transferred to your bank account. If you need the money faster, Venmo offers instant transfers for a 1% fee, with a minimum of $0.25 and a maximum of $10.
• Venmo has no regular fees, like monthly or annual fees.
• Venmo includes popular social media features, including likes, comments, and messages attached to every payment.
• Apple Pay is built into iPhone, Apple Watch, Mac, and iPad.
• Similar to the availability of PayPal, Apple Pay is accepted by over 85% of retailers in the United States.
• Apple does not charge any fees when you use Apple Pay, whether in stores, online or in apps.
• Apple Pay lets you make secure, contactless purchases using Apple Cash, Apple Card, and any other credit and debit cards you add to your wallet..
• A retail platform that allows retailers to sell in person and online.
• Options for point of sale, e-commerce, invoices and contactless payments.
• Free to use, but retailers can add tools as needed, including those for payroll and employee timesheets.
• Square’s intuitive dashboard keeps a retailer’s business data in one place.
• Using Amazon Pay does not add any fees, including transaction fees, membership fees, and currency conversion fees, to purchases at sites and organizations that accept Amazon Pay.
• Transactions are safe and secure, and everything can be tracked with an Amazon account.
• Amazon Pay accepts credit and debit cards.
• Donations, movie tickets and more can be made with a voice connection via Amazon Alexa.
QuickBooks Go Payment
• Requires a credit card reader for retailers to accept payments directly from a mobile phone or tablet.
• Swipe rates starting at 1.6% for a la carte or monthly plans are available starting at $19.95.
• It works with iPhones, iPads, Android phones and Android tablets.
• Requires a Shopify account to accept Shopify payments.
• Customers can use their preferred payment methods such as Visa, Mastercard or ApplePay.
• Includes built-in fraud analysis and flags potentially fraudulent orders.
• Pricing plans for Shopify account sellers range from $29/month to $299/month.
Does PayPal offer buyer protection?
PayPal helps secure transactions by not sharing financial information with sellers and also monitors transactions 24/7. PayPal also monitors fraud prevention and assists in dispute resolution, withholding funds until the issue is resolved.
Which online payment platform do merchants prefer?
According to Forbes, the preferred payment platform for merchants in 2022 was Square.
What is a Cryptocurrency Payment Gateway?
A cryptocurrency payment gateway is a payment processor for digital currencies, similar to the payment processors, or gateways, that banks or credit cards use. Cryptocurrency gateways allow you to accept digital payments and receive Fiat money immediately in return.
In 2021, PayPal accounted for 22% of all online transactions, however, it is one of many companies in the growing digital money space for payment systems, which include Square, Venmo and Amazon Pay.