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The 17 Best Alternatives To PayPal For Business

If you're looking for alternatives that are similar to PayPal, these options have predictable and transparent pricing, a good mix of integrations, PCI compliance, and more.

    Jason Vissers
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PayPal payment alternatives

While PayPal has long been popular with consumers, the eCommerce giant is also a major player in the credit card processing world, offering merchants an easy way to accept credit and debit cards without needing a full-service merchant account. However, PayPal doesn’t fit every business’s needs, which is why we’ve assembled this list of PayPal alternatives. But first, some background information.

Like Square, PayPal is a payment service provider (PSP). Instead of providing a full-service merchant account with a unique merchant ID number, PayPal aggregates all users into a single account. Doing so saves money on maintenance costs and allows new users to be approved much more quickly than would otherwise be possible.

Unfortunately, this results in individual user accounts being inherently less stable. This lack of stability draws frequent complaints from merchants who’ve had their PayPal accounts suddenly frozen or terminated due to a single “suspicious” transaction. Limited customer support options have also caused headaches for many users.

As with other PSPs, PayPal offers accounts with no long-term commitment or monthly fees. This business model fits many small businesses better than traditional merchant account pricing, offering greater flexibility and lower overall costs than a full-service merchant account (at low monthly processing volumes, at least). PayPal also gives special benefits to nonprofits that not all processors offer. However, PayPal’s formerly simple flat-rate pricing plan has recently become more complex and less advantageous for certain businesses.

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  • Offers payment processing, POS, eCommerce
  • Starts at $0/month & 2.9% + $0.30 per online transaction
  • Offers payment processing, POS, eCommerce
  • Starts at $0/month & 2.9% + $0.30 per online transaction

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  • Offers payment processing, POS, eCommerce
  • Starts at $9/month ($29/month for eCommerce) & 2.9% + $0.30 per online transaction
  • Offers payment processing, POS, eCommerce
  • Starts at $9/month ($29/month for eCommerce) & 2.9% + $0.30 per online transaction

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  • Offers payment processing & a POS
  • $0/month & 2.9% + $0.30 per online transaction
  • Offers payment processing & a POS
  • $0/month & 2.9% + $0.30 per online transaction

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  • Offers payment processing & eCommerce (through shopping cart integrations)
  • Starts at 3.5% + $0.35 per transaction
  • Offers payment processing & eCommerce (through shopping cart integrations)
  • Starts at 3.5% + $0.35 per transaction

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  • Offers ACH processing & wire transfers
  • Starts at $0/month & 0.5% per ACH transaction
  • Offers ACH processing & wire transfers
  • Starts at $0/month & 0.5% per ACH transaction

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Other Featured Options:

  • Adyen:
    • Offers payment processing & POS
    • Pricing varies by card network & payment method
  • Dharma Merchant Services:
    • Offers payment processing, POS, & nonprofit fundraising services
    • $20-$25/month & interchange + 0.20% + $0.11 per online transaction
  • PaymentCloud:
    • Offers payment processing to high-risk & low-risk merchants
    • No publicly disclosed pricing
  • Amazon Pay:
    • Offers payment processing with Amazon checkout buttons
    • $0/month & 2.9% + $0.30 per transaction (in the US)
  • QuickBooks Payments:
    • Offers payment processing & integration with other QuickBooks services
    • Starts at $25/month & 2.9% + $0.25 per online transaction
  • Durango Merchant Services:
    • Offers payment processing to high-risk & low-risk merchants
    • No publicly disclosed pricing
  • Wise (Formerly TransferWise):
    • Offers international money transfers
    • Pricing varies by currency/country
  • Zelle:
    • Offers money transfers between certain banks within the US
    • Completely free in most cases
  • Afterpay:
    • Offers buy now, pay later
    • $0/month & 4-6% + $0.30 per transaction
  • Klarna:
    • Offers buy now, pay later
    • $0/month & 3.29-5.99% + $0.30 per transaction
  • Affirm:
    • Offers buy now, pay later
    • $0/month & 4-6% + $0.30 per transaction
  • Payoneer:
    • Offers bank transfers & ACH transfers
    • $0/month and 1% per transaction (P2P payments are free)

Read more below to learn why we chose these options.

Recent Changes To PayPal For Merchants

In August 2021, PayPal introduced a new pricing scheme that replaces the simple pricing it offered previously. Though processing rates continue to be based on a flat-rate scheme, the new rate schedule is so complex and features so many different rates for different transaction types that there’s hardly anything “flat” about it anymore.

  • In most cases, you’ll now pay an authorization fee of $0.49 per transaction. While this won’t have much of an impact on larger transactions, it’s absolutely murderous to a business that relies on a large number of very small transactions to turn a profit.
  • Your processing rate now depends on whether you have “standard” or “advanced” credit/debit card processing, among other factors.

We encourage current and prospective PayPal users to review our article, How Much Does PayPal Charge? The Complete Guide To PayPal Credit Card Processing Fees, to see how this pricing scheme might affect your bottom line.

Do You Need An Alternative To PayPal?

While PayPal offers a wide variety of helpful business features and can still be a cost-effective payment processing solution for some merchants, it’s not a good fit for certain business situations (and for some businesses, it’s never been an appropriate choice).

Here’s a brief rundown of the types of merchants who should consider a PayPal alternative for processing:

  • High-Risk Businesses: PayPal’s Acceptable Use Policy lists numerous prohibited business activities, such as adult entertainment, CBD products, firearms, and many others. As most other payment service providers have similar policies, you’ll need to get a merchant account from a dedicated high-risk processing provider.
  • Merchants Seeking A Dedicated Merchant Account: Some merchants may be particularly susceptible to account instability with any payment service provider. These merchants stand to benefit from having a dedicated merchant account.
  • Merchants Who Have Been Terminated By PayPal: If you previously had a PayPal account that was shut down over a suspicious transaction, you may need to look elsewhere. Note that it’s sometimes possible to have your account reinstated if you can show that the closure was due to an error on PayPal’s part.
  • Merchants Who Need More Features & Integrations: Whether you need better integrations with the business software you already use, more advanced customization, or a feature set that’s better tailored to your industry, many business owners will need a PayPal alternative that offers what PayPal does not.
  • Any Merchant Who Can Get A Better Deal Elsewhere: Businesses processing upwards of $10K/month are likely to save money by going with another processor. However, when looking for a payment processor, consider other factors besides cost, particularly the quality of a company’s customer support and its reputation with other merchants.

The 11 Best PayPal Alternatives For Payment Processing

These best alternatives to PayPal won’t just offer transparent pricing and credit/debit card processing. They’ll also be able to handle alternative payment methods, such as echecks or ACH transfers, contactless payment methods, and online invoicing. Month-to-month billing and excellent customer support are also very important.

1. Square

Square



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Pros

  • Predictable flat-rate pricing
  • All-in-one payments system
  • Variety of POS apps, invoicing, and developer tools

Cons

  • Account stability issues inherent to all payment service providers
  • Not available to most high-risk industries

Square is PayPal’s closest competitor (see our Square vs. PayPal comparison article). Like PayPal, Square is a payment service provider that has expanded over the years to become a full-fledged business ecosystem, as we discuss in our full Square review.

Square Features

  • Instant Signup Available: Yes
  • Supports The Following:
    • Payment processing
    • Buy now, pay later
    • Money transfers
    • Easy setup
  • POS/mPOS systems
  • Online store

Square Pricing

  • Monthly Fee: None (for most services)
  • Transaction Rates: 2.6% + $0.10 per in-person transaction, 2.9% + $0.30 per online transaction

Contract Requirements/Warnings

Like PayPal, Square doesn’t make you sign a long-term contract, and there are no early termination fees. All services are offered on a month-to-month basis, and all paid add-ons come with a 30-day free trial.

Where Square Really Shines

If you want a PayPal alternative that closely approximates PayPal’s range of services, Square may fit the bill. The company offers a greater range of POS features and options (both free and paid) than PayPal. Square also offers a free online store, free domain, shopping cart integrations, virtual terminal, card info storage vault, invoicing, and even a consumer wallet (Square Cash). Furthermore, it offers APIs and monthly add-on services, including employee management, payroll, and appointment booking.

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2. Shopify Payments

Shopify



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Pros

  • Predictable flat-rate pricing
  • Using Shopify Payments is advantageous for Shopify sellers
  • Numerous eCommerce integrations

Cons

  • Account stability issues inherent to all payment service providers
  • Monthly account fees for all service plans

Having started as an eCommerce platform, Shopify’s ecosystem has grown to include an iPad-based POS system and payment processing called Shopify Payments. Shopify has a lot to offer online vendors seeking a PayPal alternative. You’ll get loads of handy features, such as abandoned cart recovery, a Facebook store, reporting features, order management, and plenty of third-party integrations, along with some decent card readers for in-person sales.

Shopify Features

  • Instant Signup Available: Yes
  • Supports The Following:
    • Payment processing
    • Buy now, pay later
    • Money transfers
    • Nonprofit rates
    • Advanced customization
    • Easy setup
  • POS/mPOS system
  • Online store

Shopify Pricing

  • Monthly Fee: Starts at $9/month ($29/month if you want an online store)
  • Transaction Rates: 2.4% to 2.7% per in-person transaction, 2.4% + $0.30 to 2.9% + $0.30 per online transaction

Contract Requirements/Warnings

Like PayPal, Shopify’s services are offered on a month-to-month basis without long-term contracts or early termination fees. You can sign up with Shopify for a 14-day free trial before getting a paid subscription.

Where Shopify Really Shines

Shopify’s stellar eCommerce capabilities make it a formidable alternative to PayPal for online merchants, and its POS app is a great tool for retailers. However, all Shopify plans come with a monthly fee, which may deter smaller merchants. On the other hand, the more advanced plans offer discounted per-transaction rates, so higher-volume sellers should see savings over PayPal.

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3. Stripe Payments

Stripe Payments



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Pros

  • Predictable flat-rate pricing
  • Great marketplace and subscription tools
  • Excellent developer and reporting tools

Cons

  • Account stability issues inherent to all payment service providers
  • Requires some coding skills to implement

Stripe and PayPal have a lot of similarities — both are payment service providers that target online and in-app payments, work on a global scale, and make it possible to power marketplaces and share information so that merchants can sell on others’ platforms. However, Stripe is built first and foremost for developers, and its API and documentation reflect that. Read our Stripe vs. PayPal piece to learn more.

Stripe Features

  • Instant Signup Available: Yes
  • Supports The Following:
    • Payment processing
    • Buy now, pay later
    • Money transfers
    • Nonprofit rates
    • Advanced developer tools
    • Micropayments
  • POS system

Stripe Pricing

  • Monthly Fee: None
  • Transaction Rates: 2.7% + $0.05 per in-person transaction, 2.9% + $0.30 per online transaction

Contract Requirements/Warnings

As with PayPal and other PSPs, Stripe offers month-to-month billing — no long-term contracts and no early termination fees.

Where Stripe Really Shines

Stripe gives you a lot of bang for your buck. The tools allow you to manage and organize data through custom SQL database questions, a prebuilt payments page, billing and invoicing, a POS (Stripe Terminal), and mass payouts to sellers and service providers — all without any monthly fees. Note, however, that, unlike PayPal, Stripe is a developer-focused payment processor, and you’ll likely need some tech expertise on your staff to make it work.

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4. 2Checkout

2Checkout



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Pros

  • Predictable flat-rate pricing
  • Advanced subscription management features
  • Ideal for international merchants

Cons

  • Not for card-present merchants
  • Some reports of held funds

Payment service provider 2Checkout is unique in that it only processes card-not-present transactions — brick-and-mortar retailers will have to look elsewhere. Another distinguishing factor: 2Checkout (a.k.a. 2CO) offers more features (including recurring billing and an online store builder) than your average online payment processor. Unfortunately, this means that 2Checkout is pricier than the more basic PayPal alternatives.

2Checkout Features

  • Instant Signup Available: No
  • Supports The Following:
    • Payment processing
    • Money transfers
    • International sales capabilities
  • Online store integrations

2Checkout Pricing

  • Monthly Fee: None
  • Transaction Rates: 3.5% + $0.35 to 6.0% + $0.60 per transaction

Contract Requirements/Warnings

Like PayPal, 2Checkout offers processing services on a month-to-month basis with no early termination fee.

Where 2Checkout Really Shines

2Checkout is one of the pricier processing solutions around. However, for sellers who do business exclusively online, require advanced subscription management features, or operate from a country without a lot of payment processing options, 2Checkout may be worth the extra cost. With three payment setup options and compatibility with nearly every shopping cart under the sun, 2Checkout is a strong processor for the right kind of merchant.

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5. Dwolla

Dwolla



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Pros

  • Pay-as-you-go ACH processing
  • Good developer tools
  • White-label payment solutions are available

Cons

  • No credit or debit card processing
  • Paid plans are very expensive

Dwolla is unlike the other PayPal alternatives on this list in that it’s a niche solution rather than a comprehensive payments platform. Dwolla deals exclusively in ACH payments, which are used for B2B and recurring transactions in the US.

Dwolla Features

  • Instant Signup Available: No
  • Supports The Following:
    • ACH processing/transfers
    • Wire transfers

Dwolla Pricing

  • Monthly Fee: Starts at $0/month
  • Transaction Rates: Starts at 0.5% per transaction (minimum $0.05, maximum $5)

Contract Requirements/Warnings

Dwolla’s free Pay-As-You-Go plan is available on a month-to-month basis with no early termination fee. However, reports indicate that Dwolla’s paid subscription plans require you to sign a one or two-year contract. These contracts may or may not include an early termination fee. If you’re interested in the more feature-rich Dwolla plans, ask a representative if an ETF will be part of your contract (and if so, see if you can get them to drop it).

Where Dwolla Really Shines

If you’re happy with your payment processor and just looking to add ACH payment capability, or you’re running a frugal business that can get by without taking credit or debit card payments, Dwolla can provide a good amount of value for no monthly fee. The only real downside to Dwolla is it doesn’t scale smoothly. The default Pay-As-You-Go plan offers limited customer services options, while the “Scale” plan offers full customer service and a host of additional features — but pricing starts at a hefty $250/month.

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6. Adyen

Adyen



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Pros

  • Ideal for international merchants
  • No setup, application, or monthly fees
  • Offers full merchant accounts

Cons

  • Required monthly minimum
  • Mixed customer reviews

Adyen can be a great choice for larger businesses seeking an alternative to PayPal’s confusing rate plans and high processing rates. Adyen is most similar to Stripe in its global reach and support for localized payment methods across the globe. Plus, it sports a decent list of supported partners and integrations, though many of them are tailored to enterprise-scale businesses.

Adyen Features

  • Instant Signup Available: No
  • Supports The Following:
    • Payment processing
    • Buy now, pay later
    • Wire transfers
    • Omnichannel payments
    • Advanced developer tools
  • POS integrations

Adyen Pricing

  • Monthly Fee: None
  • Transaction Rates: Blended interchange-plus and flat-rate pricing that varies by card network and payment method

Contract Requirements/Warnings

Adyen contracts are indefinite, and there is no early termination fee. However, to cancel your account, you’ll need to put your request in writing.

Where Adyen Really Shines

Offering full merchant accounts and a wide range of in-person, online, and global payment processing features, Adyen is an appealing alternative to PayPal for larger businesses with the technical expertise to implement it. However, very small businesses will have difficulty meeting the company’s monthly minimum of 1,000 transactions or $120 per month in processing fees.

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7. Dharma Merchant Services

Dharma Merchant Services



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Pros

  • Interchange-plus pricing offered exclusively
  • No annual fee or monthly minimum
  • Discounted pricing for qualified nonprofit companies

Cons

  • Not recommended for businesses processing less than $10K/month
  • Only available in the United States

Dharma Merchant Services is unique in the world of full-service merchant account providers in that it donates a significant percentage of its profits to charity. Related to that, Dharma provides discounted rates for nonprofit businesses. Combine this with competitive interchange-plus rates and discounts for businesses processing more than $100K/month, and you have a processor that deserves our 5-star rating.

Dharma Features

  • Instant Signup Available: No
  • Supports The Following:
    • Payment processing
    • Nonprofit rates and services
    • Buy now, pay later
    • Wire transfers
    • Discounted B2B rates
  • POS and mPOS integrations
  • Merchant financing

Dharma Pricing

  • Monthly Fee: $20-$25/month
  • Transaction Rates: Interchange + 0.15% + $0.08 per in-person transaction, interchange + 0.20% + $0.11 per online transaction

Contract Requirements/Warnings

Dharma offers month-to-month billing — no long-term contracts required. And while there is no early termination fee, there is an “account closure fee” of $25. That’s not too bad, considering that actual ETFs are typically between $295-$495.

Where Dharma Really Shines

Nonprofits accepting credit cards with Dharma pay a markup of only 0.10% + $0.11 for online and 0.10% + $0.08 for in-person payments. The company also doesn’t charge account update fees, ETFs, PCI compliance fees, or require a monthly minimum. All fees are fully disclosed on its website. In an often opaque industry, Dharma strives to do the right thing with its business practices.

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8. PaymentCloud

PaymentCloud



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Pros

  • Accepts high-risk merchants
  • No account setup fee
  • Excellent customer support

Cons

  • No publicly disclosed pricing
  • High-risk merchants may have to accept a two-year contract with an early termination fee

If your PayPal account was shut down due to high-risk activity, you’re likely going to need a specialized high-risk merchant account. One of the best such providers is PaymentCloud. You’ll need to obtain a customized pricing quote, but merchants’ feedback indicates that PaymentCloud’s rates are quite reasonable, and there are no application or account setup fees.

PaymentCloud Features

  • Instant Signup Available: No
  • Supports The Following:
    • Payment processing
    • High-risk processing
  • POS integrations
  • Online store integrations
  • Business loans

PaymentCloud Pricing

Unfortunately, PaymentCloud doesn’t disclose any pricing information. However, this is standard practice for high-risk specialists, as these companies work with multiple back-end processors — your rates will ultimately depend on which merchant account (or accounts) you get matched with.

Contract Requirements/Warnings

Low-risk merchants should be able to get a month-to-month arrangement with no early termination fee. On the other hand, high-risk merchants will likely have to accept a two-year contract with an ETF. However, there’s still a chance you could get a month-to-month deal, so ask to see if this is possible, and if not, see if you can get your ETF waived. Just be aware that high-risk merchants nearly always face more onerous merchant account terms than low-risk merchants.

Where PaymentCloud Really Shines

The high-risk processing space is rife with shady operators seeking to take advantage of the tough position high-risk merchants are in. That’s why PaymentCloud is so unique. The level of honest customer support PaymentCloud provides to applicants throughout the application and onboarding process — as attested to by both our readers and merchants on other sites — is an extreme rarity in this field. Lower-risk merchants will find a lot to like with PaymentCloud as well.

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9. Amazon Pay

Amazon Pay



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Pros

  • Month-to-month billing with no monthly fees
  • Predictable flat-rate pricing
  • Easy to integrate into your existing website

Cons

  • High processing rates will be expensive for high-volume merchants
  • Numerous complaints about poor customer service

Amazon Pay is a payment service provider that lets you easily add Amazon checkout buttons to your business’s website, allowing your customers to pay you through their Amazon accounts. It also integrates with other eCommerce providers (including Shopify) and offers discounted rates to nonprofits.

Amazon Pay Features

  • Instant Signup Available: Yes
  • Supports The Following:
    • Payment processing
    • Nonprofit rates
    • Easy setup
  • Online store integrations

Amazon Pay Pricing

  • Monthly Fee: None
  • Transaction Rates: 2.9% + $0.30 per transaction (in the US)

Contract Requirements/Warnings

Amazon Pay can be used on a month-to-month basis, and there is no early termination fee.

Where Amazon Pay Really Shines

If you’re already an Amazon seller, there’s no reason not to make use of Amazon Pay. And with the convenience it offers customers who tend to be accustomed to making purchases through Amazon, it’s an appealing option. Without a lot of advanced features or POS capabilities, many merchants won’t find it to be an adequate PayPal alternative, but as a PayPal supplement (or as a supplement to your existing processor), Amazon Pay is ideal.

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10. QuickBooks Payments

QuickBooks Payments



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Pros

  • Month-to-month billing
  • Predictable flat-rate pricing
  • Seamless QuickBooks integration

Cons

  • Slow deposit times
  • Inconsistent customer support

QuickBooks Payments is an ideal PayPal alternative for processing if you already use QuickBooks for accounting (or other business purposes). With credit card and ACH processing, eCommerce support, and an mPOS app + card reader, it’s great for QuickBooks users. For non-QuickBooks users, it makes less sense as a processing solution, as pricing is on the high side for smaller merchants.

QuickBooks Payments Features

  • Instant Signup Available: Yes
  • Supports The Following:
    • Payment processing
    • Buy now, pay later
    • Easy setup
  • mPOS app
  • POS integrations
  • Online store integrations

QuickBooks Payments Pricing

  • Monthly Fee: Starts at $25/month
  • Transaction Rates: 2.4% + $0.25 per in-person transaction, 2.9% + $0.25 per online transaction

Contract Requirements/Warnings

QuickBooks Payments offers month-to-month contracts with no early termination fees.

Where QuickBooks Payments Really Shines

The best part of QuickBooks Payments is how easily it fits into the greater QuickBooks/Intuit business software ecosystem. Merchants using QuickBooks software for accounting, POS, or inventory management would do well to consider this PayPal alternative. However, the relatively high rates and monthly fees may put off smaller merchants, particularly those who don’t use other QuickBooks products.

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11. Durango Merchant Services

Durango Merchant Services



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Pros

  • Accepts high-risk merchants
  • Offers offshore merchant accounts for some international merchants
  • Excellent customer support

Cons

  • No publicly disclosed pricing

Durango Merchant Services takes its place alongside PaymentCloud as one of our favorite high-risk specialists in the merchant account industry. Merchants locked out of PayPal due to the nature of their business would do well to consider Durango. The company has fair contracts, no early termination fees in most cases, and excellent customer support.

Durango Features

  • Instant Signup Available: No
  • Supports The Following:
    • Payment processing
    • High-risk processing
    • Cryptocurrency processing
    • Offshore merchant accounts
  • mPOS system
  • Online store integrations

Durango Pricing

As a high-risk specialist, Durango Merchant Services does not disclose any pricing details.

Contract Requirements/Warnings

Durango is unique in that many of its high-risk clients can get month-to-month pricing with no early termination fee. Some high-risk merchants will have to settle for a three-year contract with a hefty ETF, however. These riskiest of merchants will be exceedingly unlikely to find a better deal elsewhere, though.

Where Durango Really Shines

Along with serving high-risk businesses, Durango offers a number of other unique services, such as cryptocurrency processing and offshore merchant accounts for international merchants seeking to do business in the US. Combine this with a high approval rate and excellent customer service, and you have a PayPal alternative that appeals to a wide variety of merchants across the globe.

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6 More Great Alternatives To PayPal

Do you need more alternatives to PayPal but don’t necessarily need a full payment processor? Check out these additional PayPal competitors.

1. Wise (Formerly TransferWise)

Wise (Formerly TransferWise)



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Pros

  • Easy online account setup
  • No minimum transfer amounts
  • Low, transparent fees

Cons

  • Slower than traditional transfer services
  • No local cash pickup options

Wise (formerly TransferWise) is an international money transfer service with a unique approach to currency conversions: It maintains pools of currency into which customers can deposit one local currency and withdraw another. That means Wise’s transfer fees are significantly lower than what you’d typically see for international transactions.

Wise Features

  • Instant Signup Available: Yes
  • Supports The Following:
    • International money transfers
    • Invoicing
    • Mass payouts

Wise Pricing

  • Monthly Fee: None
  • Transaction Rates: Varies by currency and location

Contract Requirements/Warnings

You can sign up with Wise for free and use it on an ongoing basis, and there are no long-term contracts or early termination fees.

Where Wise Really Shines

While not meant for commerce in the same way that PayPal is, Wise can fill an important niche in international P2P transfers. In fact, the company points to research showing that Wise, on average, is a whopping 19 times cheaper than PayPal for cross-border money transfers!

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2. Zelle

Zelle



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Pros

  • Fast, direct bank-to-bank transfers
  • Free transfers
  • Easy setup

Cons

  • Limited by participating (US only) banks
  • Not all partnered banks currently support B2B

Zelle is the product of an unlikely alliance between some of the biggest banks in the US. It’s a P2P money transfer service that, unlike PayPal, Venmo, and Cash App, allows users’ banks to transfer funds directly to each other with no middle steps. These transfers are nearly instant and, remarkably, free (with most participating banks).

Zelle Features

  • Instant Signup Available: Yes (for customers of participating banks)
  • Supports The Following:
    • Domestic money transfers

Zelle Pricing

Zelle is free to use, and most money transfers do not incur any fees whatsoever.

Contract Requirements/Warnings

Zelle is free to sign up for and use. Plus, there are no contracts and no ETFs.

Where Zelle Really Shines

Zelle lets you send money for free. That, alone, makes it a very compelling money transfer alternative to PayPal! However, there are caveats. Zelle can only be used for transactions within the US, some participating banks don’t allow you to use Zelle for B2B purposes, and there is no built-in invoicing feature.

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3. Afterpay

Afterpay



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Pros

  • An easily-implemented buy now, pay later selling tool
  • Doesn’t perform a credit check on your customers

Cons

  • The merchant acceptance process is opaque

Afterpay is not a full PayPal replacement. Instead, it is a buy now, pay later (BNPL) customer financing tool that enables merchants to let their customers spread out payments for a purchase over a six-week period. It’s akin to PayPal’s Pay In 4 but is more versatile. BNPL solutions such as Afterpay have been shown to increase sales and reduce shopping cart abandonment.

Afterpay Features

  • Instant Signup Available: No
  • Supports The Following:
    • Buy now, pay later

Afterpay Pricing

  • Monthly Fee: None
  • Transaction Rate: 4-6% + $0.30 per transaction

Contract Requirements/Warnings

Afterpay is usable on a month-to-month basis — no long-term contracts and no early termination fees.

Where Afterpay Really Shines

Unlike many competing BNPL tools, Afterpay won’t run a soft credit check on your customers before they make a purchase, making it a good choice when you want to appeal to customers who may have poor credit. Afterpay isn’t a full PayPal alternative, but it’s a great selling tool to have in your arsenal and can be easily offered alongside PayPal buy buttons.

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4. Klarna

Klarna



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Pros

  • An easily-implemented buy now, pay later selling tool
  • Your customers get three BNPL payment options

Cons

  • Your customers must undergo a soft credit check to use Klarna

Klarna is another BNPL solution that helps you boost your sales by offering your customers financing options when purchasing from your store. More of a PayPal supplement than a PayPal alternative, Klarna, like other BNPL tools, is particularly attractive to younger customers who are especially likely to lack sufficient cash flow to pay the entire amount of a purchase upfront.

Klarna Features

  • Instant Signup Available: No
  • Supports The Following:
    • Buy now, pay later

Klarna Pricing

  • Monthly Fee: None
  • Transaction Rate: 3.29-5.99% + $0.30 per transaction

Contract Requirements/Warnings

Klarna is available on a month-to-month basis with no early termination fees.

Where Klarna Really Shines

Klarna’s appeal owes to the fact that your customers get three payment options. Pay In 4 lets your customers pay in four equal payments every two weeks, while Pay In 30 Days affords your customers 30 days after purchase to make a payment. Lastly, the Financing option lets your customers take out a loan to spread out the cost of a purchase over a longer time frame (three to 36 months).

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5. Affirm

Affirm



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Pros

  • An easily-implemented buy now, pay later selling tool
  • Very customizable

Cons

  • Your customers must undergo a soft credit check to use Affirm

Affirm is one of the most customizable BNPL solutions out there. It gives merchants complete control over the minimum amount customers must spend to qualify for installment payments. Affirm also lets merchants choose whether or not to offer 0% interest loan financing, how long customers have to repay their loans, and more.

Affirm Features

  • Instant Signup Available: No
  • Supports The Following:
    • Buy now, pay later

Affirm Pricing

  • Monthly Fee: None
  • Transaction Rate: 4-6% + $0.30 per transaction

Contract Requirements/Warnings

Affirm is available on a month-to-month basis. No early termination fees.

Where Affirm Really Shines

Affirm is the BNPL selling tool for merchants who want complete control over how they want their customers to pay. However, if this kind of control is a bit much for you, there are plenty of other BNPL options.

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6. Payoneer

Payoneer



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Pros

  • Free P2P payments
  • Inexpensive international and domestic money transfers

Cons

  • Doesn’t offer traditional merchant services

Payoneer is not a merchant account provider but a money transfer tool that facilitates domestic and international online payments. Payoneer lets you accept P2P payments, bank transfers (can be used internationally; Payoneer handles currency conversions), and ACH transfers.

Payoneer Features

  • Instant Signup Available: No
  • Supports The Following:
    • Bank transfers
    • ACH transfers

Payoneer Pricing

  • Monthly Fee: None
  • Transaction Rate: P2P payments are free, while bank transfers and ACH transfers charge a 1% fee

Contract Requirements/Warnings

Payoneer is available on a month-to-month basis, and there is no early termination fee.

Where Payoneer Really Shines

Payoneer can be a good PayPal alternative for freelancers and international businesses that simply need a convenient way to make and accept payments from other businesses, no matter where they are located. Businesses needing a payment gateway through which customers can place orders will need to look elsewhere, however.

Read our in-depth review

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How To Compare & Find The Best Alternatives To PayPal

PayPal’s strength is in its sheer breadth of features and overall convenience. At the same time, its service plans and pricing are now unduly complex and expensive for a typical small business user. If you’re looking for an alternative, you should know the following:

  • If you’re looking for a platform to remove PayPal from your life entirely, you’ll need a payment service provider or a full merchant account.
  • If you’re looking to replace some of what PayPal does with a more specialized service, check out our preferred money transfer and buy now, pay later services above.
  • No PayPal competitor is going to be ideal in every respect. When considering a PSP or merchant account provider, you’ll want to choose an option that meets your business’s specific needs without incurring an unacceptable cost. Make a list of how PayPal is letting you down or which features you’d like to have that the company doesn’t provide.
  • Unless you’re a high-risk merchant who can’t get any other kind of merchant account, avoid any providers that require a long-term commitment. You want to have the freedom to change services when you need to without paying a huge penalty.

What’s The Best PayPal Alternative For My Business?

We hope this article has given you a solid overview of some of the leading payment processing alternatives to PayPal for business. Read our article on our favorite online payment processors for another detailed look at the best merchant account and payment processor options out there.

Naturally, the best PayPal alternative for you will depend on the particulars of your business. However, Square has our general recommendation for most small business users. It’s overflowing with features, comes with a free website, and its online processing rates are now lower than PayPal’s.

Keep in mind that using Square, PayPal, Stripe, or any other PSP entails the risk of encountering account holds or terminations due to the strict scrutiny aggregators apply to your transactions. Full merchant accounts, of course, present their own array of benefits and drawbacks.

And if, after all this, you decide that PayPal might be a fitting choice, have a look at our guide to setting up a PayPal business account.

Whichever route you choose, our mission is to give you the facts about these services and empower you to make the choice that suits your own unique business needs.

In Summary: The 11 Best PayPal Alternatives For Payment Processing

  1. Square:
    • Offers payment processing, POS, eCommerce
    • Starts at $0/month & 2.9% + $0.30 per online transaction
  2. Shopify:
    • Offers payment processing, POS, eCommerce
    • Starts at $9/month ($29/month for eCommerce) & 2.9% + $0.30 per online transaction
  3. Stripe Payments:
    • Offers payment processing & a POS
    • $0/month & 2.9% + $0.30 per online transaction
  4. 2Checkout:
    • Offers payment processing & eCommerce (through shopping cart integrations)
    • Starts at 3.5% + $0.35 per transaction
  5. Dwolla:
    • Offers ACH processing & wire transfers
    • Starts at $0/month & 0.5% per ACH transaction
  6. Adyen:
    • Offers payment processing & POS
    • Pricing varies by card network & payment method
  7. Dharma Merchant Services:
    • Offers payment processing, POS, & nonprofit fundraising services
    • $20-$25/month & interchange + 0.20% + $0.11 per online transaction
  8. PaymentCloud:
    • Offers payment processing to high-risk & low-risk merchants
    • No publicly disclosed pricing
  9. Amazon Pay:
    • Offers payment processing with Amazon checkout buttons
    • $0/month & 2.9% + $0.30 per transaction (in the US)
  10. QuickBooks Payments:
    • Offers payment processing & integration with other QuickBooks services
    • Starts at $25/month & 2.9% + $0.25 per online transaction
  11. Durango Merchant Services:
    • Offers payment processing to high-risk & low-risk merchants
    • No publicly disclosed pricing

    6 More Great Alternatives To PayPal

  1. Wise (Formerly TransferWise):
    • Offers international money transfers
    • Pricing varies by currency/country
  2. Zelle:
    • Offers money transfers between certain banks within the US
    • Completely free in most cases
  3. Afterpay:
    • Offers buy now, pay later
    • $0/month & 4-6% + $0.30 per transaction
  4. Klarna:
    • Offers buy now, pay later
    • $0/month & 3.29-5.99% + $0.30 per transaction
  5. Affirm:
    • Offers buy now, pay later
    • $0/month & 4-6% + $0.30 per transaction
  6. Payoneer:
    • Offers bank transfers & ACH transfers
    • $0/month and 1% per transaction (P2P payments are free)
Jason Vissers

Jason Vissers

Expert Analyst & Reviewer at Merchant Maverick
Jason Vissers has been researching, analyzing, and writing about small business software and finance since 2015. His financial expertise has been cited in numerous publications, including The Ladders. Jason graduated with a Political Science degree from San Diego State University in 2001.
Jason Vissers
View Jason Vissers's professional experience on LinkedIn.

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The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.

Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.

Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.

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